The Political Economic System Of The United States Essay

2190 Words Oct 3rd, 2016 9 Pages
In their ideal forms, capitalist nations have governments that do not intrude on economic freedom or development. Individuals are responsible for their economic well-being and the state should do nothing but protect its’ citizens from foreign threats. This is the basis of the political-economic system of liberalism as envisioned by Adam Smith in An Inquiry into the Nature and Causes of the Wealth of Nations. [1] However, this idealistic view of national economies is barely relevant in today’s global economy. One of the most prominent capitalistic nations, the United States, has embraced programs and government intervention efforts that resemble that of a social democracy, especially in the 20th and 21st centuries. In the modern era, the United States has abandoned the core ideas of liberalism and transformed into a social democracy with a mixed economy due to globalization and the economic insecurity and inequality that was a direct result of capitalism. Adam Smith argues that true economic success will only occur in economies will no regulation or government intervention. Instead, there is the belief of an “invisible hand,” or a market that will regulate itself due to steep competition and the ability to ascend above one’s socioeconomic class. [2] Since its’ conception, the United States economy was always supposed to function on this foundation. And for a while, the United State had a completely liberal economy with little to no economic intrusion from the government.…

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