American Government and Capitalism - Essay Example

Unfortunately, by cutting off salaries, capitalists reduce demand for the products they produce. The capitalist system, therefore, becomes unsustainable. The government introduced the credit system in the 1970s to increase capitalist output consumption. The capitalist system had been fueled by lending to citizens to maintain expenditure because people could not afford it. A good example is the housing bubble. The problem to consume what America produced became obvious. Since then the citizens question capitalism.

The major problem is that ownership of the significant share of resources such as land and factories lies in the government. It is, therefore, it has become an institution over the people rather than an instrument of the people. Production and profit-sharing is majorly among few individuals, for instance, the Wall Street scenario. The people realize the blunders that come with capitalism and how the American government has failed to stop it. America can learn from the Soviet Union which was a low-income economy that survived World War I and II.

It has become the second most powerful economy, through critiquing capitalism and adopting socialism through collective ownership and ideology.