Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Differentiate laissez-faire capitalism from state-directed capitalism - Essay Example

Comments (0) Cite this document
Laissez-faire capitalism is a systematic policy where citizens or trade members engage in a free commerce activity without government supervision or engagement. The system entails pure market environment with minimal government observation. The mechanics of a Laissez-faire…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.3% of users find it useful
Differentiate laissez-faire capitalism from state-directed capitalism
Read TextPreview

Extract of sample "Differentiate laissez-faire capitalism from state-directed capitalism"

Differentiate Laissez-Faire Capitalism from Directed Capitalism Laissez-faire capitalism Laissez-faire capitalismis a systematic policy where citizens or trade members engage in a free commerce activity without government supervision or engagement. The system entails pure market environment with minimal government observation. The mechanics of a Laissez-faire capitalism policy entails attaining majority wealth and beneficial schemes with limited government interference at any given duration. An average trader engages in the same policy without restriction or direction in reference to productivity and decision-making.
The Laissez-faire capitalism offers consumer sovereignty in a diversified approach. The policy is a modification of the industrialized economy in the modern society. Laissez-faire capitalism differentiates an economy from a state. As such, crucial decision of the nation is designed to serve the economy. “A minimal role for government is called laissez-faire capitalism, from the French for “Leave us alone,” supposedly said by the French economist Vincent de Gournay (1712–1759) to a government bureaucrat” (Dahlman, Carl & William, 472). Laissez-faire capitalism entails manipulating national budgets, redistributing income and formulating national policy for an overall growth and expansion of a nation.
State-directed capitalism
State-directed capitalism refers to a systematic policy where the government contributes largely to the trade affairs target to improve an economy. The structure entails nationalizing resources and incorporating productive enterprise to develop the economy. The state-directed capitalism dynamics include privatization of enterprises, raising stock markets and providing investment capital for nation building. The program regulates trade affairs generating income under controlled government schematics. This system targets to develop an economy under regulated approaches originating from the government. State-directed capitalism revolves around government involvement in economic developments. The government allocates the necessary resources to generate revenues with assistance from other private markets. “Direct government participation in the economy ranges theoretically from a communist system, in which both the natural resources and the productive enterprises are nationalized—that is, owned by the government in the name of the people—to a capitalist system, in which the state defers to private enterprise and a stock market raises and allocates investment capital” (Dahlman & William, 472).
Economy of the United States of America
. The American economy establishes a capitalist enterprise for national growth and economic development. The American economy devises tax structures that encourage and support investments on economic activities. “The U.S. government has often played a crucial role in creating conditions for capitalist enterprise. The U.S. government has never developed an explicit industrial policy, although its regulations, research funding, and defense budget have greatly influenced the national economy. The United States has also designed its tax system to encourage investment in certain activities” ((Dahlman & William, 472).
The America economy is an exemplary structure of single national model. The economy in the United States of America regulates trade affairs of the nation with maximum government supervision. The system entails government control, monitored property rights and lacks an economic freedom. America employs the rule of law as a measure to control economic activities. The American economy employs government agencies as monitory bodies in the trade affairs targeting to centralize resources and revenues. The government expenditure in America operates above the GDP rendering high gross domestic revenues. The American model intervenes on commodity pricing through monetary easing and a provision on substantial agricultural subsidies for the general population.
Work Cited
Dahlman, Carl H, and William H. Renwick. Introduction to Geography: People, Places & Environment. Upper Saddle River: Prentice Hall, 2013. Print. Read More
Cite this document
  • APA
  • MLA
(“Differentiate laissez-faire capitalism from state-directed capitalism Essay”, n.d.)
Retrieved de
(Differentiate Laissez-Faire Capitalism from State-Directed Capitalism Essay)
“Differentiate Laissez-Faire Capitalism from State-Directed Capitalism Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Differentiate laissez-faire capitalism from state-directed capitalism


... Capitalism The United s plunged into an economic crisis in 2008 and 2009. This situation escalated, and it became an irresistible opportunity for the United States to pronounce the failure of the type of capitalism that had emerged towards the end of the twentieth century. The French President, Nicolas Sarkozy once said, “One had expected competition and abundance for everyone, but instead one got scarcity, the triumph of profit-oriented thinking, speculation and dumping." According to Sarkozy, the then economic crisis had signaled the return of the state and brought an end to public impotence illusions. Notably, economists regard the state of capitalism as one in which the governments are limited in controlling markets and posing...
3 Pages(750 words)Essay

State capitalism

... undertaken by them in 70’s and 80’s under the leadership of Deng. Modern economists believe that state should stay away from controlling private capital in the market. They are of the view that a state cannot develop properly with the help of internal resources alone. In other words, foreign direct investment is necessary for the growth of a country. Foreign direct investment can be attracted properly if the government provides enough incentives to the private capitalists. In short, modern economic theories are exactly opposite to the principles of communism. It is proved beyond doubt that communist principles are better on papers only and in practice these principles are difficult to implement. It is not necessary that state capitalism...
13 Pages(3250 words)Essay

State capitalism

How counter concept socialism, this tool for fighting is often utilized in political debate. For some, it is very improbable that this period has adequate technical merit. There is no short and so straightforward delineation of the notion is usually acknowledged, for the straightforward cause that communal idea in general, in a sense, this is a try to work out the source, environment and destiny of capitalism (Bremmer 240). Therefore, what should of necessity highly selective representation. Its aim is directed at some centered issue of outlook on capitalism as humanity, as annals and as a presence. Theories State capitalism is a scheme in which the government actions as "the superior financial contestant, and is utilized mostly...
10 Pages(2500 words)Essay

Laissez-Faire Economy

...? Laissez-Faire Economy Task Introduction Laissez-faire economy refers to a free market economic system where there is minimal government intervention. Laissez-faire encompasses both the doctrine and policies that actually enforce such an economic system. The main principle is that the welfare of both the community and individuals is best served when markets for goods, capital, land, labor and other resources are left to the “free play of supply and demand”, and when the state interferes as little as possible, in both the economic and the social sphere (Baumol & Blinder, 2011). The resources are allocated by voluntary market transactions with very limited state intervention; the main role of government is to safeguard property rights...
6 Pages(1500 words)Coursework


... individuals and enabled a well-defined role for companies so that they could easily operate in national and international markets. The concept of capitalism has often been criticised by the fact that ownership of enterprises shows the division between the employer and the employee as the profits seem to go to the employer and is not shared by the employees. The growth of multinational companies is thus a direct influence of capitalism and the changing global economy has also been directly shaped by the spread of capitalism across society and nations. In fact, the world today could never have been the same without capitalism and considering this, it is important to examine why and how capitalism first emerged in the 16th century...
8 Pages(2000 words)Essay


.... As manufacturing matured in the United States the computer helped the United States transform its economy into a knowledge based service economy. References McKinney, B. (2008). Capitalism During the Industrial Revolution. Retrieved November 13, 2011 from (2003). Karl Max. Retrieved November 13, 2011 from
1 Pages(250 words)Essay


... (Maddison, 2007). United States were fairing on well with a lot of optimism and prosperity economically before Tuesday the 29th October 1929, when the stock market crashed and caused despair in the nation. This is seen to have marked the beginning of the great depression. The stock prices began to fall drastically without showing signs of recovery, which made people panic. Out of panic and fright, people rushed to sell their stock and shares to no avail since no one was buying. There was massive fear since many people and businesses had invested stock market, which had seemed to be a viable investment. Many banks involved in this problem for they had invested in the stock market. When the stock market crashed, many banks put in a crisis...
6 Pages(1500 words)Assignment


...Capitalism Introduction The invention of capitalism started in the middle ages in Western Europe. Netherlands became thefirst capitalist country. Capitalism involves trading, technology and resources like land. Trader’s invention led to insurance and introduction of retirement funds. Accumulation of capital in the past years was through scale variety, different methods and wealth concentration (Pyke, 2011). Socialists condemn and reject the development of capitalisms. Adams Smith, who was a Scottish philosopher, introduced this new model of reality because of a number of reasons. Why Adam Smith created whole new model of reality and his similarity to Newton The fourteen century crisis leads to emergence of modern capitalism. Land...
1 Pages(250 words)Essay


Capitalism Capitalism refers to a social and political system whereby production and distribution of goods is owned by asmall fraction of the society, who are known as the capitalist class, and the other group referred to as the working class must work in order to get a means of livelihood (World Socialist Movement). In this form of government, the working class is under the control of the capitalist class as they are supposed to work and produce goods which will be sold by the capitalist class at a profit (Knight). This means that the rich will accrue wealth by exploiting the majority population, and they will achieve this by encouraging people to work in order to get money to earn a livelihood.
The present day Dubai is capita...
2 Pages(500 words)Essay


...THE ROARING TWENTIES November 19, The Roaring Twenties, Ch. 22 The introduction part of the article captures my attention by the well organized details of the American economic development during and after the World War 1. The people of America had their hopes high that after the war, the social and especially the economic status of the country would go back to normal. During the year 1920 to mid-1921 there was a recession but it did not last long. It was then followed by an astonishing expansion of the economy that brought about the new level of living standard of the Americans. Reading through the article, I get the opportunity to understand some of the products and occurrences that led to the emergence of the middle-class... ROARING...
1 Pages(250 words)Book Report/Review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Differentiate laissez-faire capitalism from state-directed capitalism for FREE!

Contact Us