Introduction
In any economic system, capitalists and managers organize natural resources, manual labor and know- how to create and bestow goods and services. The manner in which these distinct elements are brought together and used is a sign of the state’s political principles and culture. The U.S. system of government is known as federal and is composed of three different subdivisions.
These include the lawmaking subdivision, the judiciary, and the executive. The U.S. has a capitalist economy whereby small groups of persons manage large sums of money and make significant economic impacts.
The capitalistic economy of the U.S. has two approaches which include the standard and the nation-building approach. The standard approach is temporary and non-strategic.
It views market improvement as an economic issue and promotes narrowly definite and self-sufficient leadership. The state building approach is characterized by pragmatic sovereignty, sufficient governing bodies, cultural match and deliberate leadership (Flynn & McConnell 214).
Socialism is a type of government in which the community is subject to property and wealth allocation. This management may be carried out via famous persons or via the state.
As an economic scheme, this type of government is exemplified by collective possession of production means and is thus accredited to communism largely because of the allocation of wealth managed as intact and un-independently.
Socialist economics are the financially viable theories and activities of theoretical and accessible socialist economic structures. Socialist economy relies on public possession or sovereign cooperative possession of production techniques.
In this economy, production is done to create use-value that is coordinated via economic scheduling. Totalitarianism is a form of government whereby personal freedom is restricted and all aspects of a person’s life are subordinated to the governments rule.
It is a social philosophy that is understood as total control over communal activities. It is trusted that this form of government is an answer to economic problems in a nation.
Totalitarian governments receive devastating support for their opinions and objectives when it comes to economic development. This paper will compare and contrast the approach to economics of the U.S. system of government to socialist and totalitarian forms of government.
Discussion
Compare and contrast the approach to economics of the U.S. system of government to Socialism
Capitalism, which is the economic system in the U.S, and Socialism are both economic schemes. In capitalism, the economy is privatized while in socialism, there is a central government that directs the economy. While the socialist form of government vests more authority into the political organization, the capitalist economies in the U.S. contemplate more power under the rich businesspersons whose goal is profit maximization.
Socialist economies are characterized by greater management by government. This leads to political goals of equal dissemination of resources in the society. In capitalism, there is equal economic prospects with minimal or no government intrusion while in Socialism, there is equal economic prospects with government intrusion.
In capitalism, cartels can easily demolish an economy by manipulating every production means where as in socialism, schemes that cannot stand on their own such as welfare act as fiscal black holes. Both capitalism and socialism are fiscal ideologies though the aim of capitalism is profit and that of socialism is wellbeing.
The United States economy may be depicted as a mixed economy whereby the government works together with private enterprises to improve the economy. The United States, just like any other urbanized nation, has to endorse socialist laws via courier democracy to make it possible for smaller companies to expand and generate competition.
In socialist economy, goods and services are generated directly for consumption. This is in contrast to the capitalist economy in the United States where goods and services are created for profit. Goods are produced due to their value thus ignoring the need for market-stimulated wants.
Production in this type of economy is thus planned or harmonized and does not face problems arising from the business cycle. This is inherent in the United States capitalist economy.
Nearly all socialist economies apply land, labor, capital and entrepreneurship to their economic planning and not to the distribution of products produced for use as in the capitalist economy. The possession of production means in a socialist economy can be public, cooperative or communal. Economic planning in socialist economy takes a distinct form compared to economic planning in capitalism.
In socialism, planning is understood as the creation of use-value in a direct manner while in capitalism, planning is taken to mean the arrangement of capital buildup to stabilize or augment the effectiveness of this process. Socialist economies ignore the free market and its price indicator.
Its lack of enticements leads to a slow GDP growth. This is different from capitalism which has a high growth due to the presence of price indicators. It is thus easy to compute rationally how to distribute resources (Mai 145).
Compare and contrast the approach to economics of the U.S. system of government to Totalitarianism
Capitalism and Totalitarianism are both economic schemes. In capitalism, there is equal economic prospects with minimal or no government intrusion while in totalitarian economy, everything is controlled by the society.
In capitalism, cartels can easily demolish an economy by manipulating every production means where as a totalitarian economy concentrates more on distributing rather than generating wealth.
In capitalism, the economy is privatized while in totalitarianism, there is an oppressive authority which does not provide its citizens any rights or liberty (Mai 149).
The capitalist economy in the United States is a market economy whereby prices arising due to competition establish what goods are produced together with their quantities. Prices in this economy also result in fair relations amongst the several sections of production to overcome disputes.
A capitalist economy is managed by the market laws and the sovereignty of these laws comprises the influential sign of the capitalism. Totalitarian economy, however, precisely gets rid of the sovereignty of economic laws. It signifies not a market but an economy of the final consumer.
In this economy, a state planning charge determines the goods produced and how they are produced. Though price charges and wages subsist in this economy, they no longer play a role in determining the production process. They only become distribution means establishing the share that a person gets.
In this economy, both the motivating competition fire and the obsessive striving for proceeds offering the main incentive of capitalism vanish. The central notion in the totalitarian economic system is the achievement of a certain goal. This goal is the rationale why a totalitarian regime exists and all the resources are aimed at the accomplishment of the goal (Mai 187).
Works Cited
Flynn, Sean and Campbell McConnell. Macroeconomics. New York: McGraw-Hill, 2009. Print.
Mai, Ludwig. Approach to economics. Littlefield: University of Virginia Publishers, 2010. Print.