Capitalism as the New Economic System and Key to Society's Great Accomplishments

Too many people in this world, Americans in specific, the world socialism is enough to make some cringe. The thought of socialism is tied to the evil practices of the Soviet Union, North Korea, Cuba and other countries that practice communism. As Americans, we are taught to compare the economic idea of socialism as the relentless government style of communism. Capitalism has been the key to many of society’s great accomplishments thus far. Capitalism has been the backbone of the world’s economy for many years and has helped to progress our society into the technologically advanced world that we live in today.

Although it is hard to see the idea of capitalism go away, times are changing and the social conditions of this world may make it hard for capitalism to carry on as it has for so many years. It may be time for us to look at the possibility of a new economic system for a new time period.

There is no doubt that capitalism is the reason why we are such a technologically advanced world.

The incentive of a salaw is enough to make any human being work toward a typical objective, but capitalism has been so successful because it gives us the potential for a great amount of wealth. People are greedy and will do anything for money, so the idea of an incentivized economic system sounds good. “Trickle Down Economics” has been a good practice in our society because the possibility of wealth for a few has benefited all of the population.

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For example, without capitalism, ordinary citizens wouldn’t be able to afford items we take for granted today. The person who invented the automobile didn’t exactly become wealthy. The person who profited off the idea of the automobile was Henry Ford because he discovered a way to mass produce automobiles, which allowed average people to afford them. If Henry Ford didn’t have the incentive of profit, we might not be able to afford automobiles.

When Henry Ford was a Child, if he was told that he would have the same quality of life as everyone else even if he didn’t accomplish anything, then who knows if he would have had the drive to invent something that changed the world. Capitalism’s flaws have been uncovered in the last decade or so, and we have seen a rebirth in the idea of socialism spread across Europe, all for good reason. Socialism isn’t what it used to be. Socialism used to be tied in with the ideas ofJoseph Stalin, and Kim Il-Sung. Its no surprise that most Americans have a negative view on socialism due to what we experienced during our time as adversaries of the Soviet Union. Today’s socialists enjoy a much different mindset than those in the Marxist era. In theory, capitalism works perfectly, but modern technology has actually been the downfall of capitalism.

There is irony in that statement, because capitalism worked so well, that it developed something (modern technology) that ended up being the death of itself. The possibility that socialism might work better than capitalism in today’s economy is growing, and record numbers of people in the civilized world are calling themselves socialists. The reasons for socialism in this new era are pretty clear. These ideas aren’t radical, but are common sense thoughts. In today’s industries, we see a record number of employees being laid off and replaced with robots and automated machines. Technology is taking the place of the middle and lower class worker. There is becoming less and less of a demand for a physical workforce. Companies are filtering out their lower level laborers for high tech devices to which they don’t owe a salary. This is creating an ever enlarging gap between the rich and the poor. Rich business owners keep becoming wealthier because they are slimming down their workforce in exchange for technology.

This creates more money in the pockets of the business owners and wealthy shareholders. The poor keep becoming poorer because they can’t find employment due to the lack of the need for a labor force. Like capitalism, there are some very obvious flaws with this idea of socialism. If this were to be implemented in the United States. companies would leave at a record rate and go to countries that didn’t have this socialist policy. This would be sure to create the greatest economical depression we have seen in the United States to date. The only way that this idea would work would be if the rest of the world was on board with the plan, which will never happen. The other obvious flaw with this idea of socialism is that there would be a lack of motivation to work and be innovative feel that if this idea was implemented, we would see a stall in our progress as a society, as there is no financial motivation for creativity. Whether its socialism or capitalism, our country is due for some pretty radical changes.

We have been operating under a mixed economy for quite some time now and we have seen things spiral out of control. In theory, both socialism and capitalism work perfectly, but we cannot keep blending the two to create our own type of American economy. If we don’t make any changes soon, however, there may come to be a day where the gap between the rich and the poor is so substantial that there is no going back. This could lead to a handful of people controlling the entire world, which is obviously a very scary thought. That being said, I do believe that we have some time to try to fix our economic problems. The world still currently needs somewhat of a workforce, and while I don’t see that going away too soon, it is better to be proactive because someday there will be a time when we will run into trouble.