Analysis of Democratic Capitalism
Analysis of Democratic Capitalism
Throughout generations many philosophers have argued about how much the government should be involved in an economy. Countries such as USA, which is extremely capitalist have a huge number of homeless people. Countries such as USSR, which is on the left wing and being a communist country, people has lost the incentive to work bringing the economy down. Countries such as Sweden which is a democratic socialist and in the centre of the economic spectrum, requires a substantial amount to maintain its economy. A government should use Keynesian ideas that way money could be made and people could be looked after.
It is true that in a capitalist society there is a big gap between the rich and the poor but it encourages people to work. The harder someone works the more successful that person may become. Canada and USA are very prosperous nations. USA, a capitalist nation has the worlds biggest gross national product. After World War II Germany was divided into West Germany and East Germany. This land had same of everything and yet West Germany was doing well and East Germany was doing poor.
Infact Margaret Thather privatized many businesses her changing Britain to capitalism improved the economy. Alberta leads the country in growth. Adams Smith's theory where a humans' greed will give the incentive to work is true.
Even though Karl Marx's theory on equality may be correct and far more reasonable it the greed that leads one forward. Majority nations are practicing capitalism and are doing good in economy. A government is well of when it is sitting in the centre of right-wing and middle of economic spectrum. And then the government can call itself a democratic capitalism government.