Capitalism is the most dominant form of economic organization. This economic structure has received credit for pulling more people out of poverty. As a result of its adoption of capitalism, the US has emerged to become an economic powerhouse. The success that it has witnessed has inspired other nations to abandon other economic models and turn to capitalism for economic progress. For instance, China has turned away from the communist ideals that defined its economy in past years and adopted capitalism. Given the benefits that the US has experienced through capitalism, the nation should embed this economic philosophy further into its economy and lifestyle. However, it needs to be wary of various negative outcomes that could result.
How America can become more Capitalist
The measures that the US can adopt in its quest to become more capitalist can be found in the writings of various philosophers and economic experts. John Maynard Keyes is among the experts whose works the US can integrate into its economic structure. In his essay, Keyes identifies the challenges that are plaguing the US economy, thereby hampering its growth (Keyes, 1930). These challenges include low levels of capital gains and failure to adopt technical improvements. Keyes suggests that by addressing these challenges, the US will create an improved future for its grandchildren. In order to become more capitalistic, the US should accelerate the development of technological capabilities. Moreover, the country needs to reward those who invest in economic opportunities. Essentially, according to Keyes, for the US to become more capitalist, greater investment in economic productivity is needed. Americans need to commit even more hours to their jobs.
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Robert Kuttner (1999) is another expert who offers insights on how the US can become more capitalist. Whereas Keyes highlighted the need for heightened investment, Kuttner gives focus to streamlining the market. In his text, he notes that producers need to rid the market of any inefficiencies and redundancies that limit productivity. Citing Adam Smith, Kuttner adds that individuals need to be more dedicated in their pursuit of self-interest (Kuttner, 1999). As they do this, they contribute to the general growth of the economy. Kuttner also appears to suggest that fierce competition holds the key to the US becoming more capitalist. Basically, he advises that players in the American market need to be more selfish and ruthless as they seek to maximize profit. The adoption of his proposals promises to enhance the economic output of the US.
Would it be a Good Thing?
When it becomes a more capitalist market, the US will undoubtedly be wealthier and its dominance on the global political stage will be enhanced. However, when all factors are considered, a more capitalist United States is not a good thing. In his essay Buddhist Economics, Schumacher (n.d) allows readers to understand the drawbacks of the capitalist system. He gives particular focus to the poor treatment of workers. Schumacher laments that in most capitalist economies, employees are paid poorly and regarded as a mere cost. Firms go extreme lengths to minimize the cost of labor. For example, as Schumacher notes, firms automate their systems and offer their employees minimum wage (Schumacher, n.d). As noted above, for the US to become more capitalist, it will need to eliminate inefficiencies. For many firms, labor that can be replaced with automation is an inefficiency that should be eliminated. If the US becomes more capitalist, there is a real risk that many workers will either lose their jobs or will be forced to accept lower wages. Therefore, if the US is truly dedicated to the wellbeing of its workers, it needs to moderate its capitalist expansion.
Economic inequality is another negative outcome of capitalism that should cause the US to pause as it mulls over its future. It is indeed true that capitalism is underlain by liberal principles which allow all individuals to fully participate in economic actvities. However, capitalism fails to account for the fact that different individuals possess varying levels of resources, competencies and skill to exploit the opportunities that the economy avails (Muller, 2013). For example, it is nearly impossible for ethnic and racial minorities to invest in economic opportunities when they have suffered decades of economic oppression and deprivation. In essence, aggressive capitalism breeds economic inequality. If the US becomes more capitalist, it needs to brace for a society that is more unequal. Today, the US is one of the most unequal countries in the world with the gap between the wealthy and the poor growing wider (Reinicke, 2018). This gap will only widen further as the country becomes more capitalist.
Enhanced capitalism promises to transform the US into an even more influential economic powerhouse. However, before the nation rushes to become more capitalistic, it needs to reflect on the high costs associated with capitalism. Pollution and environmental damage are some of the negative impacts of capitalism (Park, 2016). Firms in capitalist economies focus on maximizing profits at the expense of the environment. Such agreements as the Paris Accord show that the world understands that unhindered and aggressive economic production hurts the environment. Under the leadership of President Trump, the US has withdrawn from this agreement and made it clear that concerns over the damage that the environment has suffered will not dampen its quest for greater economic growth. If it stays on the current path, the US will devastate the whole of mankind. Therefore, the country needs to re-evaluate its approach to economic growth.
In conclusion, there is no doubt that capitalism is the most effective economic model for tackling poverty. Most capitalist economies have been able to lift millions out of poverty. The benefits that capitalism presents provide the US with reason to dive deeper into this economic model. To become more capitalist, the US would need to eliminate inefficiencies and invest in technical capabilities. However, the country should understand that becoming more capitalist will present a number of challenges. Inequality and poor treatment of workers are among these challenges. Policy makers in the US need to ensure that any economic programs that they develop safeguard the wellbeing of all Americans and help the world to combat climate change and environmental damage.
References
Keyes, J. M. (1930). Economic possibilities for our grandchildren. In Essays in persuasion. New York: Harcourt Brace.
Kuttner, R. (1999). Everything for sale: the virtues and limits of markets. Chicago, IL: University of Chicago Press.
Muller, J. Z. (2013). Capitalism and inequality. Foreign Affairs. Retrieved November 2, 2018 from https://www.foreignaffairs.com/articles/2013-02-11/capitalism-and-inequality
Park, J. T. (2016). Climate change and capitalism. Consilience, 14 (2), 189-206.
Reinicke, C. (2018). US income inequality continues to grow. CNBC. Retrieved November 2, 2018 from https://www.cnbc.com/2018/07/19/income-inequality-continues-to-grow-in-the-united-states.html
Schumacher, E. F. (n.d). Buddhist economics. Schumacher Center for a New Economics. Retrieved November 2, 2018 from https://centerforneweconomics.org/publications/buddhist-economics/
