Capitalism and the Government

672 Words3 Pages
Capitalism and the Government Liberalism is the belief in an individual’s rights and freedoms. A constant struggle exists throughout the world to acquire the perfect amount of liberalism in a society. The source states, “society achieves its finest expression through the self-interest and freedom of individuals,” portraying a capitalist government. Supporting Adam Smith’s idea of the invisible hand, capitalists believe that the economy is self-regulating and can move itself out of recession and inflation, eliminating the need for government help. When the government is involved, a nation can reach its full potential, but without government control, societies are destined for corruption. Without having rules and regulations that the government sets, a capitalist society would quickly become overrun with greed, which would eventually lead to destruction. This has been demonstrated by the stock market crash. In the 1920’s, American capitalists had complete freedom and no regulations to follow. The strength of the economy encouraged Americans to take out more loans and buy more stocks, making them susceptible to future changes in the economy. The freedom caused financial markets to crash globally which helped power the Great Depression. Another example of lack of government intervention was the robber barons, a term referring to the wealthy and powerful businessmen in the 18th century. They were also known as “pure capitalists”, because they believed in an economic system that involved minimal interference from the government. Those working for robber barons were beaten and threatened, and the working conditions were terrible. All that mattered to the robber barons was their paycheck, and because it was all about their own self-interest, the wellbeing of their workers did not concern them. Capitalism can be most effective when the balance between
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