Capitalism: Friend, Foe, or something inbetween?

As the United States moves into the 21st Century, capitalism would be in-between a friend and an unbiased economic choice to our present and near future economy. And that Laissez-faire capitalism would not be the best idea for the United States economy. Capitalism is defined as an economic system based on private ownership of the factors of production. Capitalism would be a great economic choice for the United States because capitalism would create a “free society… in which all peaceful, voluntary actions and interactions are permitted and all use of force or fraud, except defensively, is forbidden.” In 1776, the government was seen as a major threat to ones rights and liberties. “The constitution of this nation was designed to limit government very strictly”. The concept of capitalism also helped the unemployment problems. In the 1900’s the unemployment rate had increased drastically, and because the labor markets were mostly free, many unemployed found jobs, learned skills, and created better lives for themselves. As Baetjer Jr. said, “In a free economy – unemployment is not a problem”. This can help with our current economic state because the rate of our unemployed citizens is increasing daily with budget cuts of businesses. Another example to show that capitalism has worked “some hundreds or thousands of the rich got richer… millions and millions of the poor got richer… The people of this country prospered…because our economy was free, our government was limited, and out property was protected,” this was how the free economy worked in the 1900’s. An example of how the government has ruined the free economies of the past, think back to 1919, six years after the Federal government took over the economy. After the Feds took over the CPI, Consumer Price Index for items, increased. The government interference also worked against the unemployment rates. Before, when the economy was mostly free” whenever such a person found another willing to pay him for a good or service, he was in business.” On the contrary, when the government intervened, the government has created a “host of regulations, taxes, license laws, registration fees, union rules, minimum wages and other controls stand in the way.” This government influence on the economy has actually increased the number of unemployed. This occurred because if unemployed are not earning money they do not spend as much money. Moreover, if they don’t spend as much money, producers will have to cut back because they are not earning as much. These cutbacks would include lower production numbers, budget cut of department that includes job losses, and regular employee cuts.
Laissez-faire is the principle that the government should not interfere in the economy and “functions only to assure justice and [to] keep peace”. With Capitalism paired up with the principle of Laissez-faire, the market economy would be in its purest form. A pure market economy would include no help or watch from the government in any consumption or production in the United States. A laissez-faire capitalism would not be the best idea for the world because, as seen in the past where consumption and production fluctuated, we need some form of government help the make sure the economy does not go haywire.

[All above quotes from (The Case for Capitalism Howard Baetjer JR.)].