Capitalism is an ideology where the means of production is controlled by private business. This means that individual citizens run the economy without the government interfering in production or pricing. Instead, pricing is set by the free market. This means that value is based on supply and demand and the relationship between producers and consumers.
This ideology is very different from socialism and communism, whereas the government takes control of the economy. The United States is one of the countries with a capitalist economy, which many citizens see as an essential part of democracy and building the "American Dream." However, despite being one of the most well-known capitalist countries, the United States is not even in the top 10 list of most capitalistic countries, according to The Heritage Foundation and Global Finance Magazine reports.
There are benefits and drawbacks to a capitalist economy. As far as the positive aspects, capitalism often drives the best products at the best prices. With capitalism, economic growth and innovation are also benefits. As far as drawbacks, capitalism has a few. One of the most significant disadvantages is that it does not provide for anyone that does not have skills. It also does not promote equality of opportunity. In short, some people may not get the opportunities that others receive.
- Hong Kong
- New Zealand
- United States
Is America capitalist? The United States is referred to as a mixed market economy, meaning that it has characteristics of capitalism and socialism. The United States is a capitalist society where means of production are based on private ownership and operation for profit. The United States is not a totally capitalist society, however, because the economy has regulations, taxation, and some subsidization. The U.S. government has always had some role in the economy, but the economy was closer to a truly free market during some periods. The government has at least some partial control over education, roads, health care, and postal deliveries and provides subsidies to oil companies, financial companies, and agricultural producers. Additionally, private businesses must register with government agencies, and certain types of companies need government-approved licenses.
Is Russia capitalist? Some state that Russia is a state capitalist society and others state that Russia is a "mixed market" economy. State capitalism is an economic system in which the state undertakes for-profit economic activity, and the means of production are state-owned enterprises. The state controls approximately 55% of Russia's economy, and the government directly employs 20 million workers (28% of the workforce). Additionally, the existence of oligarchs in Russia makes the country non-capitalist.
Is Japan capitalist? Japan is a capitalist country in the form of collective capitalism. In Japan's collective capitalist system, workers are usually compensated with job security, pensions, and social protection by their employers in return for loyalty and hard work. Collective capitalism focuses on long-term relationships, such as companies owning shares in other companies, resulting in cooperation between companies since they are interested in each other's performances.
No country in the world has ever achieved a totally capitalist, "laissez-faire," or a free-market economy. Mostly all capitalist economies are mixed.