The United States: A Socialist or Capitalist Society?
The United States: A Capitalist or Socialist Society?
A reflex response regarding the type of society the United States comprises would directly imply that America embraces capitalism. However, recently the United States has emanated predispositions towards socialism, especially with the incorporation of federal tax deductions on the middle class society by the Obama regime. Thus, articulating whether America is a capitalist or socialist society or even an integration of the two presents an issue in definition. This is in accordance with the role that the United States plays in carrying out financial activities within its economy. On one hand, the country plays a significant role in the facilitation of market transactions and capital markets in order to encourage private investment. This implies a strong approach towards capitalism. On the other hand, the United States concentrates on the regulation of the same capital markets and market transactions, and as such displays quasi-absolute authority in controlling means of production in the economy.
On an economical perspective, Capitalism simply implies the allocation and control of resources by private corporations and financiers (investors) majorly. State authority within a capitalist nation typically concentrates on the development of standards, communal safety and wellbeing, and other fundamental activities such as regulation of the country’s currency, conservation of the environment and regulating populace health. In addition, capitalism entails the ownership of factors of production and financial sources under governmental agencies. The level of capitalism involves the degree to which possession by the government is actually permanent or temporary. For instance, the Banking Crisis in the 1930s and subsequently in the 1980s saw the involvement of the government in managing abortive or deteriorating institutions temporarily by closure or privatization. This depicts capitalism based on the return of such institutions to private hands after managing the crisis.
On the other hand, socialism denotes the positioning or assignment of basic possession of factors of production to the State. In a socialist society, means of production are under control by the State. Thus, the State poses complete power over the activities carried out on such factors of production. As such, an indication of socialist practice is evident where the government mandates employers to provide a certain percentage of income to Social Security. Another instance is evident in the provision and structure of pay scales for minimum wage vocations. Usually, the government is responsible for structuring and enforcing pay structures for workers. This indicates a socialist perspective based on the assertion that the government regulates the salaries that private corporations award to their workers. As such, determination of pay lies squarely in the realm of the government, which further implies an integration of socialist tenets within the regulation of the financial economy.
In summary, it is evident that the United States does not apply pure capitalism within its economy. This is in accordance with the approaches the United States utilizes in facilitating its modern economy. Irrespective of exuding inclinations towards socialism, the United States maintains a considerable degree of capitalism based on the embedded nature of the economic principle within its structure. Nonetheless, based on the shift in governing its modern economy, the approaches towards socialism imply that the United States integrates socialist practices in order to facilitate its capitalist economy. This is evident in cases where the government involves itself in regulating both private and public companies in order to facilitate an effective economy. For instance, providing government treasury bills and bonds within the financial market illustrates the involvement of the government in facilitating private investment. Therefore, by adopting socialist practices in its capitalist economy, the United States illustrates a focus in not determining what type of economy it embraces, but in ensuring economic success.