Newell-Fonda High School
Newell, IA
Teacher: Mrs. Doonan
By Jacob Jeppeson
12th Grade
Socialism is a political, social and economical plan, which expresses the personal struggle for the equal distribution of wealth and power by eliminating private property and the higher ruling class. In practice, such a wide distribution of wealth and power is achieved by social ownership and control of the means of production, exchange and diffusion. Capitalism is an economic theory, which focuses on the control of the means of producing economic goods in a society should rest in the hands of those who invest the capital for production of the goods and services. Private ownership and free enterprise are supposed to lead to more efficiency, lower prices, and better products. Both are systems of government that have shown times of prosperity and have shown equal times of depressions. Both also have their good and bad points. Capitalism however, has proven to be more prosperous in times of need. Therefore, is the reason that the United States government resembles capitalism, more so than socialism.
Socialism is a society where all of the resources are controlled by the laborers and are used to benefit the society as a whole, not just select groups. Instead of ownership of private property like in capitalism, the government plays a huge role where society owns the political property such as banks and factories. The government has control over production and economic activity, but the people decide what to produce, where to produce, how to produce, and how to distribute the product so that everyone shares the profit. The United States is not like this in anyway. The people have control of everything they produce, and the government sets no limits or standards on how much to produce. Socialism is based on the equality of all people. Equal opportunities, the needs of food, clothing, shelter, and jobs are all entitled to the people. This, however, is not true of the United States government. The people do not have anything that is equal; there are rich and there are poor, homeowners and homeless. The economy is based on private enterprise, which leads to competition among businesses and corporations, and inequality. When companies compete, they try to get the lowest prices and best services to draw the most customers.
Capitalism is based upon private ownership of property and every person has the right to live his or her life in any manner he or she chooses, as long as no interference occurs with another person’s individual rights. Laissez faire, given by the Scottish philosopher Adam Smith, is another name for capitalism. He said it is better for a government to have no intervention in the economy at all. A government that interferes or has anything to do with the economy will set limits and standards on the economy, taking away the free will of the laborers to produce and serve. In capitalism, individuals run and manage their own business to earn a profit for themselves in a free market. Businessmen work together to create a product or service that betters the world. Businessmen can also work against each other in competition to create the best product for the lowest price.
The only politico-economic system based on the doctrine of individual rights is capitalism. Not only do the laborers and businessmen have individual rights, but the customers and consumers have the same rights as well. Before becoming a laborer, a person has the right to choose what job to do. In the United States, a person can choose anything from being a farmer to being a chief executive officer of a major corporation. Every person has the same opportunity as the next; it just depends on how much effort and how bad they want that type of career. As a laborer, a person has the right to decide what to produce, how to produce, and how to distribute the product. A businessman has the option of what type of business is desired, where to build it, and how to advertise and expand. Since capitalism is centered on free enterprise and private property, a businessman may do what he wishes with his products and property as long as it does not encroach on another’s rights. As a customer and consumer, there is a choice to decide which product is better for the money it costs. Also, there is a choice to be made about how to use the product. A person’s standard of living depends on his/her decisions as a laborer and customer. In America, a person with a high paying job as a corporate executive is likely to be well educated, and have nice, expensive personal belongings. Everything a person does in life contributes to their overall success.
The United States government resembles the characteristics of capitalism as it has shown in times of need. America is all about free will, volunteering, and individual rights. Socialism deprives people of their rights and free wills to decide how to live their life by setting limits on them as an end result. Capitalism stresses control by letting businesses compete for lower prices, decreasing chances of inflation and disorder. The United States has numerous businesses where no government interference occurs. These businesses have stood on their own for many generations and have grown and adapted to our changing society to fit the needs of today’s world.
Answers To Questions Prompted By The Required Reading
1. What does Mr. Reed mean when he says “Equal people are not free.”?
a. If people were all equal, that would mean that the government is setting limits or standards on people so that no one overpowers another. This takes away the right to live their own lives and do as they wish, so therefore they are no longer free.
2. What is the deadly trade-off to reliance upon government, according to Reed?
a. The trade-off is when people rely on the government; there must be some sort of funding to supply the government with resources to perform services for the people.
3. Why did the Founding Fathers assure that the United States became a republic rather than a pure democracy?
a. Pure democracy is too unwieldy and unworkable, has endless contentiousies, and is disrespectful to some rights of people in minority groups.
4. What is the saving grace of democracy according to Lawrence Reed?
a. The saving grace of democracy is that there can be political change without violence.
5. Richard Haas gives two unusual reasons for advocating democracy. What are they?
a. The two reasons are that democracy discourages terrorism, and a mature democracy usually does not cause war amongst other countries.
6. Give two reasons you personally would promote democracy.
a. Democracy promises majority rule and an equal voice.
7. Comment on President Bush’s current foreign policy.
a. I think that President Bush is doing a poor job. The only things I hear about are negative. Never do I hear about any positive things that he is doing in other countries. In my own opinion, I think he is trying to finish what his father started.
8. How did you interpret each of the four different hats?
a. I thought the first one represented power, the second was rich, third was smart, and the fourth meant business
9. How did you interpret the megaphone, baby, knife/gun?
a. I thought the megaphone represented speech, the baby was life, and the knife was death or murder.
10. Browse the “favorite links” of the Economic Freedom Network and share one of your favorite discoveries with us. Tell us why you chose it.
a. I discovered that there is an organization called Free Market Center that creates ideas for the free market. I never knew there was an organization that did this.
11. Once again go to www.freetheworld.com and this time note the question asked near the top of the page: “How much economic freedom exists in your country?” and randomly choose five countries. List the name of each and their highest and lowest year for economic freedom.
Highest Lowest
a. Albania- 2003 1990
b. Cameroon- 1980 1985, 1995
c. United States- 2000 1970
d. Benin- 2001 1995
e. China- 2003 1980
12. Which of your five countries had the greatest degree of economic freedom?
according to this exercise?
a. The United States
13. What was the summary rating and rank in the year it achieved this degree of economic freedom?
a. 2 out of 123