STATE CAPITALISM OR LIBERAL CAPITALISM

State Capitalism Is A Better Economic Model Than Liberal Capitalism

State Capitalism is a Better Economic Model Than Liberal Capitalism

Introduction

Rely on the growth of social institutions, especially the state, capitalism assumes distinctive characteristics in different nations. The state—that is, administration organizations of a state and its protective subdivisions and localities—protects and proffers a administrator structure for businesses operating during markets. In state capitalism, broadly defined, the state actively fosters, promotes, offers services to, controls, and occasionally manages investor-owned commerce. Liberal Capitalism is the analysis that the best economic instruction is a free market. This view can be warranted by practical deliberations, as in those of Bentham, or by a combination of functional results and innate privileges, as in Adam Smith's theory. This paper discusses if state capitalism is a better economic model than liberal capitalism or not.

Discussion

Liberal Capitalism is a doctrine or ideology that premises liberty and individual rights, such as freedom of thought/religion, equality of opportunity, and the right to own property. Because self-determination is seen as key to concepts of liberty, liberalism tends to advocate free competition and free markets. What rights do individual citizens have and what responsibility do governments have in protecting these rights? Well, liberalism contends that all individuals have the right to life, liberty, and property, or, as expressed in the US Declaration of Independence, 'life, liberty and the pursuit of happiness'. Put simply, liberalism puts liberty at the heart of its political, social and economic ideology. As such, liberal governments are responsible for establishing and protecting individual liberty and a right to self-determination. Elections are generally fair and unbiased, individual rights are made explicit, and citizens are equally protected under the law. Economic policy tends to be based on the premise that competition between entrepreneurs is not only the right of individuals, but that it builds a strong economy. Government intervention is thus kept at a minimum. (Muller 2003, 136)

Comparison between State Capitalism and Liberal Capitalism

Liberal Capitalism is an outdated but helpful term to explain presumptions advocated in the 17th and 18th centuries. "Liberal Capitalism" conveniently explains suppositions of the 17th and 18th centuries that protected the person freedom to employ, sell, buy, work, and deal without limit or parliamentary interfering. The universal mood of Liberal Capitalism is briefly captured in the French expression of the era, 'leave people alone', or laissez-faire.

The term state capitalism was coined by political economists to describe market economies heavily regulated or controlled by the state, on behalf of property owners. Unlike stateless capitalism, where markets function without governmental assistance, commonly called "free enterprise," political authorities play a powerful role in state capitalist systems. (Buick 2006, 25-26)

According to me, state capitalism is an profitable economic movement used by the state with organization of the industrious powers in a capitalist way, even if the state is supposedly socialist. It is also known as a free market economy or a free enterprise economy, is an economic system (or, in Marxist terminology, a mode ...