Calvert Hall College High School
Towson Maryland
Teacher: Mr. Kropp
Capitalist USA
By Ryan Kelly
11th grade
Many economic systems exist in the various nations of the Earth. Capitalism advocates private ownership of property and freedom of markets. Socialism, on the other hand, supports the equal distribution of wealth and public ownership of all property. These two systems have become the basis for governments as people look for ways to protect their personal and common interests. The United States government encourages capitalism for its citizens, granting individuals rights and privileges in economic interaction.
The U.S. government encourages individuals to better themselves and gain economic standing, since this brings more capital to the country as a whole. In the early days of our government, it repaid its war debts from the American Revolution to bondholders, regardless of how they got the bonds. This strengthened the wealthy class, and this wealthy class stimulated industry and traders in the country through loans, bettering the economy as a whole. The U.S. has had its share of monopolies, such as when J.D. Rockefeller gained control of the oil industry, or more recently when Bill Gates created the Windows operating system. This kind of wealth, concentrated in individuals and private organizations, could not exist in a socialist country, but it is the dream of many in capitalist societies. The distinction of classes is not supported in socialism where all people should be equal, but there is constant discussion in the USA about the gap between the rich and the poor. Reed refers to this when he says, “Free people are not equal, and equal people are not free”. There is a diversity of wealth among the citizens of the U.S. that is supported by its capitalistic outlook on business and economics as a whole.
The protection of private property is another aspect of the United States government’s support of the philosophy of capitalism. They respect individual rights of citizens. One example is the amendment that prevented the quartering of soldiers except during war, respecting Americans’ right to their homes. The government is not allowed to seize private property without granting just compensation. Citizens are allowed to sue the government for compensation if they feel their rights have been violated, where, in a socialist society, the government owns property and it has absolute control over what people receive. Patents and copyrights are legal measures that demonstrate this protection in the U.S. Patents allow people and companies to invent new items for sale and keep control over their development. Copyrights can protect intellectual property, such as books, theorems, or music. Both of these legal agents allow the development of new ideas and grant benefits to those who work creatively. The fact that the government can be indebted to people and has a responsibility to protect their property shows that it is secondary to individuals in economic affairs.
The stock market is an entirely capitalistic organization, allowing individuals to use their money to invest in business ventures. The ability for investors to support industry and earn money shows how a system of private property can support itself. The growth of individuals who use the stock exchange to make fortunes, and the growth of businesses who use this money to support themselves exemplify how a successful capitalistic system can support society. The government supports these exchanges, and is even considering using the stock market to help itself recover from Social Security deficits. The freedom for the people to invest in private enterprise shows the support of the U.S. government in the capitalist economy.
Competitiveness, both a cause and effect of capitalism, can be seen in American society. A competitive nature drives people to try and outdo one another, striving for personal success. In a capitalistic system, there are rewards for being the best. This encourages people to struggle to become better. It stimulates a better economy. When companies compete, they are forced to work toward being the best in their field, which attracts foreign markets and brings wealth to the country. Capitalism, by granting private ownership of goods, builds upon mankind’s natural competitive instincts to create a successful economic system.
The U.S. government embraces capitalism over socialism. Although both philosophies have some presence in our government, capitalism is clearly the stronger influence. Through free markets and our many protections of private property, individuals are encouraged to invest and compete for their own success. Their gains help society overall as they use their money. The economic diversity of the United States reveals the widespread impact the philosophy has on the citizens. Economic successes in the past reveal that this system allows people freedom and success, where socialism could drag down an entire economy by trying to keep people equal.