American Capitalism Essay

2383 words - 10 pages

Although it holds true that the United States is a global power, the current economic system, capitalism, threatens the state's domestic and global stability; the concept of materialistic success creates inequalities between citizens, which, in turn, leads to deviance and rebellion, and the possibility of a fallen capitalistic society. If the United States were to struggle internally, one of two things would happen: all industrialized external forces would exploit on America's lack of equanimity, or said forces would contribute to an international depression as a result of a chain reaction set by the collapse of an important economic state.
The inequalities that lay between social classes are a product of capitalism, the idea of a privately owned capital used freely by the owners to profit from their enterprises (The Encyclopedia America). Because money is the core of their system, US citizens are self-interested actors. Power and wealth is circulated between an exclusive group which compromises of the top twenty percent of the US's population. Power, in this sense, is the ownership of a private corporation seeking to make profit. The disparity between classes in terms of wealth can best be demonstrated by providing the household distribution of net worth within the country. The top one percent alone holds almost 26% of America's wealth network; the frightening stat, however, is how little the bottom eighty percent own--less than 20% of the network. Combined, the top twenty percent of the population accounts for about 86% (L-Curve), and the inequality becomes apparent. Amidst the division in fortune, there is variance in wealth distribution by race. Recent surveys conducted by the U.S. Census Bureau shows a significant gap between whites and other ethnic subgroups. In 2008, blacks contributed 24.7 percent to the poverty rate and Hispanics were almost as poor, contributing 23.2 percent. In contrast, only 8.6 percent of whites/non-Hispanics fell between the lines of poverty (U.S. Census Bureau). Wealth is so scarce and it hardly gets distributed. Some might argue that inequalities are trivial to democracy, that in any case, people will always remain unequal either by status or pay. The American motto is that if a man works hard, he will receive the most opportunities and will be reimbursed. Since it is a profit-based economy, only those with talent who can assist the CEOs in making profit will reach status in the top twenty percent. However, claiming that the majority of the population, a good eighty percent, is 'untalented' is obscure. A smaller percentage might have been more reasonable to account for. Though it holds true that in any system inequalities preside, the wide gap between the social stratifications in America demonstrates the extremes. This theory of "hard workers to the top" does not regard those who have inherited their power and wealth; the fact that neither power nor wealth are extended to all citizens, at least a fair...

Find Another Essay On American Capitalism

Capitalism Essay

1291 words - 5 pages -American economist named Joseph Schumpeter who argued in defense of large corporations said, "the prime mover in capitalist progress is not the small businessperson but the entrepreneur who introduces new technologies and develops them." He also said "Capitalism gives creative people the freedom to make innovations, unlike state-runned economies which tended to stifle this creative force." He also predicted that

Capitalism Essay

1293 words - 5 pages gross national product. After World War II Germany was divided into West Germany and East Germany. This land had same of everything and yet West Germany was doing well and East Germany was doing poor.In fact Margaret Thatcher privatized many businesses her changing Britain to capitalism improved the economy. Adams Smith's theory where a humans' greed will give the incentive to work is true. Even though Karl Marx's theory on equality may be correct

Capitalism

1402 words - 6 pages smaller businesses. An Austrian-American economist named Joseph Schumpeter who argued in defense of large corporations said, 'the prime mover in capitalist progress is not the small businessperson but the entrepreneur who introduces new technologies and develops them.' He also said 'Capitalism gives creative people the freedom to make innovations, unlike state-runned economies which tended to stifle this creative force.' He also predicted that

capitalism

6049 words - 24 pages Capitalism - the best solution of the modern economy or the best way to get rich The Bucharest Academy of Economic Studies 18 pages - 2 - Foreword Since the fall of the communist regimes in Europe, capitalism has been the succeeding ideology and still remains the main form of politics in today's world. Also, the revolutionaries who militated for the fall of the communist regime were impelled by the capitalist dream. The current essay aims to

Improving Capitalism

905 words - 4 pages , it does not mean society should not critically examine capitalism and seek out other viable alternatives. If anything, capitalism should be acknowledged for what it is—a predatory economic system based on greed and selfishness, rather than considered a flawless souvenir of American pride. If society by some means was to initiate a modified system providing equality and conditioning people to take only what is absolutely necessary, the

Authoritarian Capitalism

1854 words - 7 pages counterparts. With reference to the growth patterns that developing nations tend to follow before democratization, use of an authoritarian capitalism system has seen a reviving trend, specifically in China. The authoritarian model has clear benefits over their democratic counterparts, as seen through the revival of the authoritarian model and its combination with capitalism such as in the case of China and Russia under Putin, supporting the

Academic Capitalism

3362 words - 13 pages “You didn't get there on your own. I'm always struck by people who think, well, it must be because I was just so smart. There are a lot of smart people out there. It must be because I worked harder than everybody else. Let me tell you something – there are a whole bunch of hardworking people out there.” (Obama, 2012) How does this quotation relate to the increase of capitalism in the education institution? It has to do with the mentality of

Karl Marx and Capitalism

965 words - 4 pages -laborers are exploited tremendously. Capitalism, under the disguise of fair exchanges, carries its exploitation nature from previous economic systems. Many proponents of capitalism argue that the wealth is shared with the workers. But is it true? According to an annual report in 2008, an average American CEO makes as much money in one day compared to what an average worker earns in one year1. And the disparity between business leaders and average

Capitalism: A Love Story

1263 words - 5 pages market. With Moore as the narrator, democracy is shown in a contradiction against capitalism as he describes the life he lived as a child when democracy was considered to be more appropriate for every American citizen because of the decent life that it provides for every citizen. After showing old footage of President Roosevelt proposing the second bill of rights he says that it is a crime to not have FDR’s dream which was the second bill of

Varieties of Capitalism

2361 words - 9 pages Institutional Foundations of Comparative Advantage, Oxford, Oxford University Press Hall, P. A. and Gingerich, D. W. (2004) ‘Varieties of Capitalism and Institutional Complementarities in the Macroeconomy: An Empirical Analysis’ MPIfG Discussion Paper 04/5, pp.1-44 Hall, P. A. and Thelen, K. (2005) Institutional Change and Varieties of Capitalism, Annual Meeting of the American Political Science Association, Washington, DC, 1 September Hall, P. A

The History of Capitalism

1434 words - 6 pages world without any damage, American imperialism thrived. America’s economy expanded and the U.S. replaced German and Japanese fascism with Capitalism (“Kan”). One can assume that capitalism is the natural production of human nature. Of all the economic systems tried to date, Capitalism appears to be the only system that has endured many tests, and has grown to dominate the world. The fact that communism in Russia failed during the 1980 and

Similar Essays

Uncle Al: A Symbol Of American Capitalism

1466 words - 6 pages In Sarah Gruen’s novel, Water for Elephants, the character “Uncle Al” plays a very minor yet significant role. Uncle Al’s character is truly the backbone of the Benzeni Brothers and essentially, the embodiment of American capitalism. This essay will illustrate how Uncle Al’s character is reflective of the American capitalism ideology by examining the indifferent relationship he shares with the workers and animals, his unregulated business

Capitalism Was Behind American Colonization Of Puerto Rico

1569 words - 6 pages Capitalism Was Behind American Colonization of Puerto Rico The platform upon which the United States was built, freedom, was erected in response to the oppressive nature of colonialism. On July Fourth, 1776, the original thirteen colonies declared their independence, because the weight of Great Britain’s colonial restrictions proved to be too burdensome. The Constitution was signed shortly thereafter to protect American citizen’s rights

Law And Regulation, The Apitome Of American Capitalism? The Emergance Of Wall Street And New York As An International Financial Icon 1900 2002. Steele's Novel "The Great Game"

1764 words - 7 pages Today, Governmental law and regulation seems to be the epitome of American capitalism. But this was not always the case; in the beginning, Wall Street was a ruthless environment with almost no laws or regulatory measures. Fraud, bribes, insider trading, market corners and an overall lack of precise accounting created a tremendously unbalanced market in which small shareholders were the primary losers. Men such as Cornelius Vanderbilt, Jay Gould

Capitalism Essay

1141 words - 5 pages ? One of these problems for example could be an American company building a factory in Africa and globalize. However the problem could be that the American company is doing business in Africa because there may be certain regulations such as environmental laws in the U.S. that do not exist elsewhere. For Global Capitalism to move into the next stage will require a much more sophisticated look at the costs and benefits of open markets. (Engardio 72-76) Only the future may decide where capitalism is heading, but if the past is any indication, capitalism will correct itself where needed and succeed.