Capitalism and Why it Works

For the last ten years (and frankly, for years before that), the debate has raged between those who feel like capitalism is the strongest and best form of a country’s marketplace system, and those that would prefer a form of strict, true socialism. Though it exists today in truncated form, socialism has never been fully in place in any country. The true, Lenin and Marx version of the venerated institution has never come out to play in the utopian society that it supposedly promises. And therein lays the problem. Though nothing is stopping a system like socialism from flourishing and creating the ideal society, it has simply never worked. Capitalism, on the other hand, while not perfect by any stretch of the imagination, has worked and continues to work in many of the world’s strongest nations. Why is this?

First, let’s examine what capitalism is. It is basically a free market. Nothing (or as few things as possible) is generated or paid for by the government, and thus is free of most government restrictions. With this system, competition becomes king. When the state doesn’t mandate a certain service be used, there will naturally be a fight for the service. In theory, the consumer winds in this situation. Lower prices, better service, and on and on. Of course, it doesn’t always work out that way, but it does tend to work out in the favor of the consumer. Sometimes, however, there is disagreement over what the consumer wants most. But that is another benefit of a free market system. There may have to be a king, but that doesn’t make the king the only game in town (and when it does, the government usually will step in). There will always be the benefit of choice. Don’t like the prices or service at Best Buy? Circuit City is just across the street.

This is, of course, a simplification, but the advent of capitalism and a free market world has led to a dramatic increase in the Gross National Product of many countries around the world. This is, of course, proof in itself that the system works and is the best system in place today. Like democracy (or a republic, as our system really is), there may be better systems out there; we just haven’t found them yet.

Of course, that’s not to say that capitalism isn’t without its fair share of detractors, and not to say that these detractors don’t have some reasonable things to say. There are even religious concerns with some tenets of capitalism. Some forms of religion, for instance, look down upon and forbid the lending of money with interest, a key component of out capitalistic society. Others look at a widening gap between the have’s and the have-nots and see something that is seriously out of whack. But the opportunity, proponents argue, is there for everyone. With the right entrepreneurial spirit, the best ideas, and a strong hide, anyone can make themselves a success in a capitalistic society. This is not the case in even the best case scenario for socialism. That is why, perhaps, capitalism will continue to thrive while the other systems fail. No matter how flawed, it is the centerpiece of the American dream. The thought that, no matter where you’re from, if you have the brains and the determination, you can make your life anything you want it to be. Point to something from socialism that’s even half that inspirational and you've got it.