Capitalism Can Lead To Human Happiness Essay Example

in the 16th century.

During the Medieval era, various production processes based on capitalism emerged in social, cultural, technical, and economic conditions. Capitalism thrived within feudal agricultural systems and was regulated by government policies and industrial aspects. Land ownership was limited during this time period as the king granted land rights to lords while tenants could only rent land from them. The Feudal agricultural system underwent significant changes during the 17th century in Europe as the Manorial system gradually gave way to a money-oriented economy and agrarian contracts. Manorialism played a crucial role in the feudal society of Medieval Western and Central Europe, encompassing principles and practices that were fundamental to the rural economy. Agrarianism has two meanings: one with social or political connotations that view rural societies as superior to urban ones; this perspective was advantageous for independent farmers who were often considered superior to workers and saw farming as both a means of livelihood and a way to shape social values.

The text discusses the implications of political land redistribution and the rise of modern capitalism during the 16th-18th centuries. This period saw the emergence of Mercantilism, an economic practice aimed at strengthening state power through governmental regulations. Some policies of capitalism included limiting trade between certain colonies, monopolizing markets through ports, controlling wages, restricting the exportation of valuable minerals, and using non-tariff barriers to control domestic consumerism.

Queen Elizabeth promoted mercantilism in England and endorsed the Trade and Navigation Acts to protect English shipping. However, according to Karl Polanyi, mercantilism focused on commercialization without addressing labor and land's foundational elements.

During the mid-18th century, Mercantilism experienced a decline as a group of economic theorists led by

Adam Smith challenged its core ideology. This period also witnessed the emergence of Industrial Capitalism which encouraged capital accumulation and extensive investment in machinery. By the end of the 18th century, introduction of factory system proved advantageous for work processes.

During the Middle Ages, both Manorialism and the Open-Field System declined gradually in Europe. This agricultural system also spread to Western Europe, Iran, and Russia by the 20th century. In the early 1900s, capitalism faced challenges such as the Russian revolution of 1917, which led to the establishment of the first communist state worldwide. Additionally, ten years later, the Great Depression emerged and brought criticism of capitalism while also giving rise to Fascism—an ideology that supports state-controlled capitalism.

However, after World War II and the end of the Great Depression, leading capitalist economies recovered impressively with unprecedented growth. The role of governments became crucial in regulating and moderating this global capitalist system. It is important to note that there are five distinct forms of capitalism.

They include; Free-Market Capitalism Responsible Capitalism Social Market capitalism Mixed Economy Free market economies, widely known as neoliberalism or fundamentalism, have exhibited dominance during the 1980s. This was achieved by combining confidence what markets can achieve better results without government’s influence. However, most governments stood on the way of the markets rather than being essential to their functioning and ultimately were cut down to size. The role of governments was therefore seized and the governments forced to retreat in social, environmental and consumer protection.

Free trade agreements have been successful in removing protectionist barriers and promoting competition, integrating national economies into the global market. However, corporations tend to benefit more from this environment than

countries themselves. Free-market capitalism involves prices determined freely, supply-demand balance, no government intervention, and productivity driven by privately owned sectors.

In contrast, responsible capitalism entails a free-market economy with some government regulations to prevent excessive capitalism and inequalities. This includes a welfare state supporting the unemployed and low-income individuals as well as a progressive tax system where higher earners contribute proportionally more based on their income to fund government expenses.

While many industries operate in the private sector, it is essential for the government to assume certain responsibilities such as providing healthcare services, education, public transportation, and regulating monopolies in order to protect workers' rights.

The social-market economy is distinct from a free market economy in that it emphasizes unemployment benefits, labor rights through collective bargaining, and extensive social security while minimizing government involvement in price formation and control. It is primarily based on private ownership of businesses. In contrast, the United States is considered a mixed economy which combines private and public ownership, allowing for both free markets and economic interventionism. In a free market system, prices are determined by vendors and consumers without government interference. Economic interventionism involves government intervention to address market failures, ensure general welfare, combat fraud, enforce agreements, provide public goods, promote income equality to some extent, increase employment, wages, profits, money supply and interest rates while also influencing prices.

Capitalism is the driving force behind our economy's growth. By 1900, the American economy had fully embraced capitalism as its core ideology. Capitalism prioritizes private ownership in unrestricted markets, without government interference. Its main goals are accumulating wealth, securing property rights, creating jobs, and sustaining the economy through wage labor. Private property owners have

control over production decisions and receive rewards such as rent for land, wages for labor, and profits from capital. This system is built on principles of profits, prices, and private property.

There are concerns regarding the negative impact of capitalism in the United States on society. This economic system allows the rich to become wealthier while keeping or making the poor even poorer. Consequently, greed, selfishness, and inequality have emerged, with approximately 1% of the population possessing 40% of the wealth and around 50 million individuals living in poverty. Nevertheless, capitalism also presents its own set of advantages and disadvantages.

The benefits of capitalism include citizens in the United States having ownership over property or businesses. This ownership fosters fair competition, opportunities for profit generation, and the accumulation of wealth.

Within capitalistic economic systems, law and order are fostered through the facilitation of a productive environment for free trade. This is achieved by diverse entities including worker unions, organizations, courts, police officers, law enforcement agencies, and international agreements. Moreover, the notion of bankruptcy protection holds significant worth in capitalism.

Capitalistic countries have implemented laws to regulate bankruptcy declarations on individuals, businessmen, and corporate bodies, as well as to protect intellectual property such as patents and publications through copyright laws. These copyright laws safeguard individuals and companies from intellectual property theft. Banking institutions and insurance companies have also played a supportive role in capitalistic countries.

Financial support, security, and compensation are provided by banks and insurances in case of losses. Banking regulations and insurances also mitigate risks like theft and fraud. Capitalism allows businessmen to freely trade and access their capital globally. Additionally, citizens have the freedom to utilize their land

for various purposes, including agriculture and investments.

The lack of strict rules governing land use allows for high production through diverse utilization of land as a factor in the production process. In capitalistic societies, citizens have the freedom to cultivate, rent, or lease their land, unlike in democratic societies where government regulations control land use. Furthermore, the distribution of products and services is entrusted to the citizens themselves.

In the deregulated market, individuals have the freedom to sell or buy without government interference. This applies to farmers who can export their products globally. In this highly competitive market, sellers strive to produce high-quality goods to attract consumer interest and increase profits. This competitive environment benefits society by encouraging sellers to add value to their products. Additionally, this environment fosters innovation and creativity as sellers and producers seek a competitive edge.

The development of new and improved products is a result of creativity, which can lead to high production. In a capitalist society like America, this enables sellers to offer their products at lower prices. While living in such a society provides equal opportunities and happiness, it also comes with a price. Unfortunately, capitalism has its drawbacks as well. One disadvantage is the widening gap between the rich and the poor, evident through the significant increase in billionaires since neoliberalism began in 1980. The number of billionaires went from 99 in 1990 to 322 by 2000, highlighting the oppression of impoverished populations in favor of the wealthy.

At present, the global count of billionaires stands at around 1,011, showcasing the rapid surge in inequality worldwide. Those in positions of authority, including politicians and political organizations, manipulate market factors like demand,

supply, and pricing to hinder diversity and competition. By limiting production output for their own selfish and unfair gains, they ultimately enhance profits.

Control measures are enforced in nearly all sectors of production to influence consumers' purchasing decisions. Consumers play a crucial role in capitalist economies, exerting a significant impact on the economy by participating in the production of goods and services. Businesses, individuals, and corporations strive to meet consumer preferences effectively to maximize sales. Some companies heavily rely on advertising as a means to stimulate consumerism among their target audience.

Nevertheless, under the principles of capitalism and without government intervention, privately owned firms can dominate specific industries within a free market and exploit consumers by imposing higher prices while offering lower wages. When a monopoly arises from a merger or acquisition, it eliminates competition from small business owners through competitive tactics and cost reduction strategies. Consequently, consumers are left with fewer choices and face increased prices. This situation also contributes to elevated unemployment rates resulting from downsizing, takeovers, and rising costs of goods which consequently leads to inflation.

Throughout history, the topic of a capitalistic government has been highly debated both theoretically and within political movements. In the 19th century, industrial capitalism advanced, allowing adult males in Britain to obtain voting rights in political elections. This development resulted in a close association between democracy and capitalism. However, during the 20th century, capitalism became intertwined with various political systems such as absolute monarchies, dictatorships, and single-party states. The democratic peace theory suggests that democracies typically avoid engaging in conflicts with other democracies due to their stable political environments and common attributes.

While capitalist economic growth has been a catalyst

for democracy in the past, its future impact may not yield the same results. This is because authoritarian regimes have demonstrated the ability to foster economic growth without being influenced by political freedom. Several researchers contend that many countries with capitalist economic systems prosper under oppressive and autocratic political regimes. Notably, Singapore serves as a prime example, drawing significant foreign investment due to its open market economy.

Despite its inability to protect civil liberties like freedom of speech and expression, the state has seen high economic growth in capitalist countries such as the republic of China and Chile under Augusto Pinochet's regime. However, this economic success has come at the cost of high levels of inequality, as authoritarian approaches have been used to foster investment and capitalism. Additionally, some analysts believe that inequality is a natural outcome of economic growth in capitalist economies. Consequently, the concentration of wealth in such economies often destabilizes democratic societies and undermines their principles of social justice.

Capitalism and democracy are incompatible as capitalism involves dictatorship while democracy involves rule by the people. In the United States, government structure is based on democracy, allowing all citizens to participate in decision-making through free elections and empowering the people. Key components of a democratic government include free and fair elections, citizen involvement in politics and society, protection of human rights, and equal application of the rule of law. In a free enterprise system, businesses have freedom and limited government interference to operate for profit in a competitive environment. However, concerns exist about companies gaining excessive power and potentially disrupting market forces. Some Americans look to the government for assistance in regulating or breaking up

such companies. Both state and federal policies are established, including environmental laws, with states having the flexibility to shape federal laws and enforce them as they see fit. State and local governments also have the ability to influence federal regulation when direct intervention by the federal government is not possible. The implementation of federal regulations often prompts states to adopt stricter regulations if deemed necessary.The United States emphasizes the importance of both free enterprise principles and government regulations. Over the past 25 years, there has been a debate between liberals and conservatives regarding the role of regulations in protecting businesses from unfair competition at the expense of consumers. Liberals support government interventions, while conservatives view them as detrimental to business competitiveness and efficiency. Market deregulation, facilitated by free trade agreements, serves as a means to link businesses in capitalism.

Free trade agreements aim to remove constraints on market competition, creating intergovernmental agreements known as Trade Blocs. In these blocs, participating countries increase tariffs and quotas on traded goods and services. Many countries opt for economic integration when their economic structures align harmoniously. The United States, for instance, has signed various free trade agreements such as the U.S-South African Customs Union Regional Free Trade Agreement in 1999 and the Central American Regional Free Trade Agreement in 2005.

The U.S has also started bilateral free trade agreements with countries such as Chile, Jordan, Singapore, Australia, Malaysia, Colombia, Morocco, Panama, and Peru. It is evident that many of these agreements were initiated while George Bush was in power and were aimed at countries that have insufficient or ineffective laws protecting workers' rights. Neoliberalism perceives labor unions as obstacles to competition

and profits. Despite free trade agreements being hailed as contributors to growth, poverty reduction, and efficiency promotion, they are unfairly designed without considering the rights of workers.

Critics argue that free trade agreements result in job losses in the U.S. due to labor outsourcing. They also hold it accountable for environmental degradation, heightened economic bubble risks, and cultural homogenization. Government interference affects capitalist economic systems by influencing product prices, which in turn impacts market equilibrium.

When demand exceeds supply, prices and output typically increase, while they decrease when supply surpasses demand. In a capitalistic state, where pricing mechanisms are unregulated, the market self-corrects by attaining a new equilibrium price and quantity.

However, in democratic economies, markets are regulated by the government to promote public welfare and safety, conserve natural resources, correct market failure, and for other reasons. In capitalistic economies, markets are not relied upon as much. Instead, the state relies on state-owned enterprises and indirect economic planning for capital accumulation. Competition occurs when producers decide to sell similar or identical products to the same buyers. Capitalists believe that competition leads to lower prices and innovation.

The absence of competition would lead to the formation of an organization comprising manufacturers or suppliers with the aim of maintaining reasonable prices and restraining competition in areas where monopolies typically arise and assert control. This clearly demonstrates that in capitalist economies, government intervention is minimal compared to democratic ones. In these economies, the government's role is primarily concerned with protecting citizens, safeguarding the constitution and bill of rights, which in turn safeguard individual rights, establishing laws, legal systems, and criminal punishments. In terms of trade, police officers are responsible for

enforcing the enacted laws while the court systems are responsible for prosecuting such laws. As a result of stringent workplace regulations imposed by the United States to protect employee safety, health, and wages, numerous major corporations like Nike have relocated their factories abroad.

The cost of regulation, safety, and environmental issues results in less profit for companies and lower payouts for CEOs and stockholders. Nike has chosen to relocate its factory to a Third World Country, taking advantage of cheap labor, including child labor, while benefiting from the US consumer market and maintaining low costs. Many large corporations, including Nike, move their businesses overseas because it is much cheaper than producing in the United States. Prices are not determined by supply and demand in this scenario. Nike spends an average of $3.00 to produce a sneaker in Indonesia and sells it to American consumers for $75-250. Capitalistic countries that practice capitalism as their economic system include the United States, United Kingdom, Canada, Hong Kong, and Japan. The United States has established free market and trade agreements with countries such as China, Morocco, Peru, Singapore, and Panama.

The trade is controlled by businessmen and corporations who determine supply and demand. Countries like China have also formed ties with African nations, where Chinese nationals exploit Africa's oil, wood, copper, and other natural resources. Workers from Hong Kong, Japan, and Canada can freely trade with Americans, importing inexpensive American products. In the United Kingdom, capitalism has been practiced since 1800 BC when goods such as silks and spices were traded after the Crusaders. Today, the UK engages in free trade with numerous countries worldwide.

The investment in various sectors such as

industry, agriculture, and human resources has occurred worldwide. These capitalist economic systems experience unregulated movement of capital, resulting in financial instability and labor migration. The globalization of capital markets has facilitated the influx of foreign direct investments on a global scale. As capital becomes increasingly mobile, motivated by the pursuit of more profitable conditions, employment opportunities become unstable and fluctuate regularly.

Due to the need to find employment, workers are compelled to accompany capital. One prominent example is the impact of NAFTA on Mexican agriculture, which has led to a decrease in the industry due to the influx of inexpensive imported food. Consequently, jobless farmers have opted to migrate to the United States in pursuit of job opportunities. Nevertheless, capitalism is widely perceived to bring happiness to the residents of nations or states where it is implemented, thanks to various factors.

Capitalism is advantageous in several ways. One benefit is the formation of an organized working class, which results from the presence of organized labor. Additionally, capitalistic economies often experience urbanization, with cities developing at a rapid pace and economic activities focused on generating profits and accumulating wealth. Capitalism also correlates with improvements in health and population control. This is achieved through reduced birth rates resulting from technological advancements and the implementation of measures to decrease mortality rates. In countries like the United States, capitalism has led to better lifestyles due to increased productivity, improved healthcare, and increased employment opportunities (DaniRodrik 77). Moreover, capitalism fosters the expansion of global markets and enhances international trade.

The United States has signed free market agreements with various nations such as China, Singapore, Chile, Panama, Peru, Canada, Japan, among others. These agreements

allow trade participants to control the prices of goods and services within the free market economy, promoting competition. Consequently, global markets and international trade have greatly contributed to the development and enhancement of international finance, transport, infrastructure, and timing of development. Capitalistic economic systems have demonstrated the effectiveness of establishing and improving higher education systems. Additionally, university exchange programs have emerged due to the close ties and relations between capitalistic countries.

For instance, there are exchange programs that facilitate student exchanges between a university in the United States and a university in Japan. These programs foster multicultural interactions, facilitate international unity, and promote capital movement. Additionally, they also encourage the awarding of scholarships to enable students from one region to study in another region for academic purposes. Through these initiatives, students are able to exchange academic knowledge and integrate different backgrounds, which ultimately leads to technological development and new discoveries.

Governments from countries like Korea, China, United States, and United Kingdom have sponsored students from third world countries in science and humanities fields to promote personal and national development. Capitalism fosters financial growth in practicing countries. For instance, China, United States, and United Kingdom have achieved significant economic growth by investing in Africa's impoverished nations in sectors like oil and agriculture. These nations import raw agricultural goods from Kenya and Ethiopia at reasonable prices, process them at low costs, and sell the surplus back to the African countries. Additionally, developed countries import crude oil from oil-rich Middle Eastern and African nations, such as Nigeria and Libya, process it at fair costs, and sell it to African countries.

Capitalism brings happiness to businessmen as it drives financial growth. For

instance, affluent individuals engage in international trade to acquire various finished products such as textiles, electrical and electronic goods, and construction materials, among others. This results in lucrative business transactions, personal growth, and ultimately happiness. Capitalism also fosters well-being by encouraging healthy lifestyles.

Due to free trade agreements among capitalistic nations, there is a free flow of health-related information. Qualified healthcare practitioners can share information with clients globally and potentially address their health issues. The free market promotes the movement of individuals, including businessmen, between countries. These movements foster multicultural and social interactions that lead to changes in lifestyles.

When an Asian person travels to the United Kingdom, they have the opportunity to observe and adopt healthy lifestyles that are practiced in that foreign country. Upon returning home, they can then share these same lifestyles with their community and fellow countrymen. The exchange of pharmaceutical products between capitalist countries also contributes to promoting healthy lifestyles. The United States, Europe, and India, for instance, are known to engage in extensive trade of preventive and curative drugs worldwide.

Capitalism has a positive impact on access to pharmaceutical drugs and related services due to their availability in free markets. The influence of capitalism in shaping constitutions is evident in many nations and states. In fact, countries that have trade agreements with the United States often turn to the US constitution for guidance when developing and amending their own constitution. Legislative bodies have incorporated clauses from different constitutions, contributing to the improvement of constitutions and leading to greater satisfaction by eliminating oppressive and uncooperative governing systems.

Amending constitutions based on foreign constitutions can be complicated due to the varying economic, social, and political

backgrounds of countries and states. Capitalism has played a role in the development of bills of rights, which promote freedoms such as speech and expression. However, not all countries embrace these rights. Yet, capitalism fosters the formation of bonds through free trade, which can lead to the establishment of bills of rights. This, in turn, promotes happiness among citizens and prevents victimization based on violations of these rights.

Capitalism enhances lifestyles by promoting respect for the rule of law. It also offers various career opportunities and equal rights for women in economic systems. Women can pursue jobs in political systems, such as Governor, Senate, or even President, and have ownership of properties, including factories. Although women workers have made significant progress in gaining their fair share in the workforce, they still face wage disparities compared to their male counterparts. Many women have higher education and work longer hours than men in similar positions, yet they are paid only 70 cents on the dollar compared to men's 90 cents.

This text emphasizes the political nature of capitalism and the hope for its transformation into law. Capitalism is believed to enable equality and provide opportunities for success and better living. Different countries perceive capitalism differently due to varying legal regulations and political perspectives. The absence of government interference allows capitalism to foster unlimited potential for growth in private enterprises, entrepreneurship, and lucrative corporations, thereby spurring economic expansion. This, in turn, leads to individual and job growth, as well as overall market growth, ultimately promoting human happiness. Consequently, capitalism plays a pivotal role in advancing and nurturing happiness.