Capitalism is just as it gives people the freedom to engage in economic, political, and social activities, with minimal regulation (Roskin, Cord, Medeiros, & Jones, 2014). Prosperous nations like the USA owe their progress to this system, which encourages free trade and healthy competition. Capitalism safeguards order, power, and justice in society.
Capitalism owes its existence to Adam Smith. Although it is held that the ideology came from Europe, Adam Smith is acknowledged as the father of modern capitalism (Commons, 2017). Adam believed that labor was the most important factor for gaining wealth. In his text, the Wealth of Nations, he posits that labor specialization and division of labor aided people to perfect their skills and products, which they could sell. Capitalism, considered virtuous by Smith, represented human nature, which was the selfish desire to trade one thing for another. Smith reasoned that capitalism was key to national prosperity.
Forthwith, capitalism has distinct characteristics. Notably, there is private ownership of property. Capitalism advocates for individual ownership of factors of production like land, capital, and labor (Roskin et al., 2014). Additionally, it thrives in a free market economy. In this regard, the higher the demand for products, the higher the supply. Competition is a trait of capitalism. People, nations, and organizations compete for resources and market domination. There is also minimal government involvement. The government only exists to create a level playing field for all participants by implementing laws and taxes.
Capitalism empowers people. The system results in balanced power between the government, consumers, and organizations (Roskin et al., 2014). The government creates laws that empower employees and protect them from exploitation by their employers. Further, the capitalist system is credited with empowering women. Women can engage in free enterprise in fields which were previously dominated by men. Through mechanization, activities like heavy lifting work in industries have been simplified for both genders to manage. Minimal government intervention in businesses gives people the freedom to engage in economic and political activities as long as they are within the requirements of the law.
Order has been attained through capitalism. The law regulates the freedom and conduct of people. People are free to pursue their interests and engage in social, economic, and political ventures as permitted by law (Commons, 2017). Additionally, capitalism separates the state from economics and religion. The state does not control every aspect of the economy nor the religious beliefs of people. Moreover, private ownership of property ensures that people utilize what is theirs, reducing any potential conflicts. The free market is also regulated by ethical and religious beliefs, which promote good conduct.
Capitalism fosters justice in the community. Capitalism is founded on the principles of individual rights (Commons, 2017). Laissez Faire, a concept in capitalism upholds people’s liberty to lead their lives as they deem best. People have explicit rights and freedoms to which they are entitled by virtue of being human. Forthwith, the system supports voluntary labor. People have the freedom to decide where to work. The rule of law also punishes those who wrong others. Contravening what is considered acceptable behavior leads to legal actions against the accused. The government’s role is to protect the citizens, which it does without violating their privacy.
Capitalism safeguards order, power, and justice in society. The system empowers people by giving and protecting their rights. People also pursue activities that please them so long as they abide by the law. Order is maintained by the rule of law and separation of the state from commercial and religious activities. Concerning justice, capitalism promotes freedom and punishes those who violate laws.
Commons, J. R. (2017). Legal foundations of capitalism. Routledge.
Roskin, M. G., Cord, R. L., Medeiros, J. A., & Jones, W. S. (2014). Political science: An introduction. Pearson.