Though capitalism has made the United States the richest country in the history of the planet, there are still detractors (with great numbers) who would prefer the country move to more a socialistic form of economy. These detractors, by and large, are not uneducated, communist haters of America. They are liberal leaning patriots with an idealism that many in the past have had. On paper, few can argue that the socialist utopia sounds nice. Everyone working for everyone, pulling their own weight, and sharing alike the bounty of the land. It’s hardly a step forth from the way the Native Americans lived in the days before European settlement. The trouble with socialism (beyond what some consider at the outset to be an unfair and stifling dogma) comes with its application. Even more so than with free enterprise, the rich get richer and the poor never have a chance for advancement. Greed sets in among those in the highest levels of government, and eventually, rather than all working for all, all are working for a few. With capitalism, at least in its strictest form, everyone has an equal shot.
Before we go any further, let’s define capitalism. It is, basically, the existence of a free marketplace, where people may set their own prices for their services, and the market will determine whether or not a product or service can be sold for that price. The government, except in extreme cases of corporate monopoly, stays out of the way. The theory behind the system says that products and services will naturally balance due to supply and demand. The more people want a service or product, the higher the price (with factors such as production costs and advertising of course playing a part). The lower the demand, the lower the cost. And, of course, the rarity of a product or service will also play a gigantic role in setting the cost. With this system, the stage is set for competition. This, in turn, helps drive prices to their lowest possible set point, while encouraging a system that allows everyone a chance at the brass ring. The smartest, the hardest working, the most ingenious–these people will rise to the top in a capitalist society.
On the other hand, let’s look at socialism. In a socialist system, the government provides the country’s basic needs and requirements. It sets the price on health care, food, schooling, housing, and almost everything else. Most often, these basic needs are free of cost to the general population. Those who do no work whatsoever are provided for just as well as those who work the hardest. There is little chance to become rich in a socialist economy, and little incentive to be the best or work the hardest at anything. The idea that everyone is equal is taken to the extreme. Except, of course, this becomes perverted in almost every socialist nation. The government reaps the reward of the populace’s hard work, and the politicians (who may or may not be in office due to a general election) become the only example of wealth in the country.
As a business man or woman, you owe whatever success you might have first and foremost to the fact you live and work in a capitalist society. Your advancement will be as high and far as your merit will take you. Your ideas and speech are free, and the only thing holding you back is your own limitations. At the same time, we live in the most generous country on Earth. Through government programs and, more importantly, private charities, we take care of those less fortunate better than any other economy. This is why capitalism will continue to prevail, and the United States will continue to be the world leader in progress and innovation.