Capitalism Or Socialism? Essay Sample

Capitalism and socialism are two of the most dominant ideologies and economic systems globally. The two differ when it comes to the ownership of means of production. Capitalism the ownership is held by private individuals while socialism, the government maintains the ownership of these means of production. In America, capitalism is the most dominant as an ideology and as an economic system. This is well exhibited by the elements of the American economy and the lifestyle led by majority of its citizens.
The first observable element observed in America is the increased ownership of factors of production by private entities. The private sector happens to be the most expansive in America providing the American citizenry with virtually all goods and services. The private ownership characterizes virtually all American sectors. The next observable characteristic in the capitalist America is the presence of liberalized trade. The United States government has little or no influence on the market of goods and services. Much of the economic decisions are guided automatically by the price mechanism without any control or direction from the federal government.
America is further perceived as a capitalist nation due to the element of competition in its economy. The country’s economy has a large number of sellers and buyers who are highly motivated by their interest. These players, however, do not influence the market decisions with their personal decisions. Many businessmen in America further engage in the economy with the core intent of maximizing profits. Failure to attain profits, in many instances, spells doom for them as well as their private entities. Another element that points to America being capitalist is the fact that much of the income acquired in transactions, and other economic engagements are in monetary form.