Essay on A Capitalist Economy Is The Way Of The Future

1276 Words 6 Pages
A Capitalist Economy is the way of the future. As most of the world is making the change to a capitalist economy, Third World and former communist nations are not finding the same success that the United States and some European nations have. First off, Capital is wealth in the form of money or assets owned by an individual or organization. The reason why capitalism works so well in the west is because of the property systems, even in communist China their is property systems to a certain extent but they are much more restricted then the property systems of the United States. The something else that de Soto argues that is needed to produce wealth is, the formal property systems of the west. The reason why the United States has been so successful as a capitalist nation, is because of its ability to produce capital. As de Soto states in his book The Mystery of Capital,” Widely accessible legal property systems are the silt from upriver that permits modern capital to flourish. This is one of the principal reasons macroeconomic reforms are not working. Imitating capitalism at the level of the delta, by importing Mc Donald’s and Blockbuster franchise, is not enough to create wealth. What is needed is capital, and this requires a complex and mighty system of legal property that we have all taken for granted.” de Soto, 66.
Formal property fixes assets and turns them into active capital; it provides the process, the forms, and the rules. What this means is taking what is know…

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