LAISSEZ-FAIRE CAPITALISM
It is one of the economic systems where the government does not take any part in managing the economy. However, it is one of the multiple repetitions of capitalism that has been practiced in the U.S. in this economic system; the business sector is usually very free from government interventions especially on activities of regulations and tariffs. The belief about laissez-faire capitalism gained support in different regions of the world. The reason behind this was the push for freedom of thoughts and the need to advance free trade and competition in various economies of the world.
Additionally, this system allows the economy to be a self-regulating entity which does not require any external prescriptions/regulations. Nevertheless, there are individuals or a group of people In the United States who came up with different views about this system of the economy. They include; Andrew Carnegie, the Social Democrats, workers, and Progressives.
Andrew Carnegie
Andrew Carnegie was born on November 25, 1835, and died on August 11, 1919. He rose from poverty to become an industrialist, as well as an influential writer. He also influenced the public by publishing books and numerous articles. His general thesis was that democratic institutions in America and the economic and social freedom present at that time were responsible for his success. According to Offe (2019), there is a clear indication of his message shown in his article “Triumphant Democracy (1886)”. Inside this article, he quoted how “the old nations of the earth creep on at a snail’s pace and” “the Republic thunders past with the rush of the express.” Later, Carnegie defended lasses-fair capitalism and represented it by a social Darwinist law of competition where he stated “survival of the fittest.” Whaples (2019), meaning that animals and plants compete in a struggle for existence. It is very open about this fact that was propounded by Carnegie that in today’s society every living organism whether plants or animals have to strive for them to have a better future. Also, I support his suggestion on how the economy operated free without any interference where he saw his business running smoothly. Offe (2019)
The Social Democrats
It is a group of people that supported economic and social intervention to promote social justice within the boundaries of democratic policies and the capitalist economy. Schweickart (2018), proposed that to achieve that, the social democrat involved themselves in a commitment to represent and participate in common activities which aimed at; measuring income redistribution, regulation of the economy and welfare state provisions. Therefore these group of people wanted to create conditions for capitalism. In this case, the social democrats wanted the government to get involved in the issues of the economy that embraced a mixed economy based on the predominance of private property, with only a minority of major utilities and public services under public ownership. Offe (2019) viewed that the social democrats suggested the need to have “a cohesive society that destroys the state of thing and promote togetherness.” This particular group of people wanted to help the needy and underprivileged by insisting that the government should only leave few private amenities and provide the majority of it for the benefit of those who are not able to cater for valuable services from those social organizations or institutions.
Workers
The workers believed and supported the approach that the government should have less intervention especially in the case where it is protecting private properties and maintaining peace. Schweickart (2018), also believed that much of government involvement in the economic issues cause an increase in overall price thereby hurting the economy. They argued that “government should involve itself in private enterprises to prevent workers from being misused. It looks clear that those individuals owning a private business had the tendency of taking advantage of the workers and treating them in unfair ways. They also made another suggestion “imposition of rules and regulations to private businessmen.” This is a clear indication that without complete government interference, those owning the big business will continue making a profit and workers will be oppressed as they struggle to meet their daily needs with little pay.
The progressives
According to, Stahl (2018) progressive economics developed in the late 19th century with an intention of dealing with the realities of natural depressions, workplace dangers, low wages, and assaults on labor rights, mass unemployment, environmental negligence, public health issues, and political corruption in government offices. Whaples (2019), recommended that the main assumptions defining the progressive approach to economics are grouped in terms of theory, values, and practice. Starting with the theoretical side, progressive economics is concerned with scoring a balance between private and public actions to ensure stability and equal growth in the economy.one of their assumptions ” The Progressive Intellectual Tradition in America.” Stahl (2018). This was a discussion that aimed at creating the freedom to its people and employing the high power of the state to improve human welfare and national prosperity.
After a brief discussion of the overview of laissez-faire capitalism, the above-discussed individual or group opinions vary. As we have seen, Andrew Carnegie and workers never accepted the interference of the government to the economy. They, however, suggested that better the economy with fewer government interferences or entirely no involvement. The group of the social democrats and the progressive recommended government involvement in business activities so that it can help in producing public facilities to the general people of the country.
References
Offe, C. (2019). Some Contradictions of the Modern Welfare State (1981). In Der Wohlfahrtsstaat und seine Bürger (pp. 79-87). Springer VS, Wiesbaden.
Schweickart, D. (2018). Against Capitalism. Routledge.
Stahl, R. M. (2018). Economic Liberalism and the State: Dismantling the Myth of Naïve Laissez-Faire. New Political Economy, 1-14.
Whaples, R. M. (2019). The Road to Crony Capitalism. Independent Review, 23(3).