The Rise of Socialism in the American Economy

Topics: Mixed economy, Capitalism, Market economy Pages: 6 (1611 words) Published: November 11, 2009
The Rise of Socialism in the American Economy

Tyler Strickland

11th Economics research paper

Thursday, April 24, 2008

The rise of Socialism in the American Economy


Socialistic Economy
What is it?
Advantages and Disadvantages
The effect of socialism on a country and its economy
The rise of socialism in our economy
Examples of socialistic views in our economy
What’s happening to our economy
Improvements in the economy in my opinion/closing remarks

Final Draft

The American economy has been one of the world’s greatest economies, because of its adaptation of the free market system. This economy allows people to somewhat do what they want to do in business. If you want to open a business, and have the money and knowledge to do so, the freedom is there to do so. The same way for the consumers (us); we somewhat have the freedom to buy and sell in our economy. This system embraces the private sector, which is the people, rather than the public sector, the government. However, in recent years, this economy has started to embrace views that command, socialistic, and communistic economies embrace. There has been more government control in the economy, which means less freedom for people to start their own business or less to gain from workmanship. Without entrepreneurship and workmanship, an economy cannot survive well.

A socialistic economy (or a command economy as commonly referred to) is an economy in which the government has control over all that deals with the economy. In other words, the government controls the wages of the people, determines where the people can and cannot work, controls the businesses. The people don’t have the freedom to choose, and therefore, have no motivation to work and to gain profit or make business.

Two advantages to a socialistic economy are governmental services for all the people (healthcare, education, military, etc.), and the people are often guaranteed a job. But with advantages come disadvantages. Some of the disadvantages include: little or no freedom, what people say and do are usually controlled, and no matter how long or how hard the person works, everyone gets paid the same. Those services that everyone is provided, like healthcare for everyone, are inefficient and ineffective. People that have diseases or need medical attention will usually die before they get healthcare because they have to wait for a long time, and when they do receive healthcare, the doctors are often times under skilled or under equip to treat a disease. Those are the disadvantages, and they out weigh the advantages.

Here is another example of a socialistic economy. The picture to the right side shows a satellite image at night of the Korean Peninsula. The lights represent industrial production. There is clearly a difference between command/communist nation North Korea, and the free economy nation of South Korea. Freedom of business and production equals a better and flowing economy. North Korea’s economy now has a poor record of exports, an enormous amount of debt, and trade agreements only to communist nations. That is what happens to a nation that embraces the views of a socialistic economy.

What does this have to do with America, the free market nation? Well, America, in recent years, has adopted some policies that don’t work well in a free market, or in any market for that matter. One good example is the North American Free Trade Agreement, or NAFTA. NAFTA eliminates the tariffs (taxes on imported goods) and other restrictions between the countries of the US, Canada, and Mexico. This put a burden on our nation, because we ended up giving billions of dollars to the World Bank.

Other programs include Social Security, which takes money out of the taxpayer’s...
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