What Was The Impact Of Capitalism In America

In 1800’s Europe, after the industrial revolution there was some questions that needed to be answered by society; output, input, and distribution. To help answer these questions and replace the ideas of mercantilism, the ideas of capitalism and socialism were introduced. Capitalism was the first idea to be introduced. Capitalism is when a country's economy is controlled by private businesses, and is many based on production and distribution ideals. People who didn’t agree with the whole industrialization and the class separation, supported the socialist idea. Socialism is where government controls all aspects; input, output, and distribution, of economy of their country. Capitalism’s biggest advocate was Adam Smith, and Karl Marx was a big supporter of socialism. Having these men work at these ideas and spread them around has helped the United States and other countries develop into what they are today. The United States uses a mainly capitalism economy, but it is also has some socialism inverted into it. …show more content…
He wrote “The Wealth of Nations”, to help spread his ideas on how capitalism should work. It talked about an “invisible hand” in the marketplace. The “invisible hand” idea is how the marketplace can be ran without government interference, also known as laissez-faire. Government should not be allowed to handle how the people decide to buy and how businesses decide to sell. The whole idea of capitalism is to let the people decide how businesses succeed, by letting the them buy what works in an area. Having this competition lets the people in a community strive to grow in the class system. Capitalism allows people to chose for themselves how they want their community to be