Summer+Assignment

Our summer assignment is titled “Capitalism & Democracy”. You will deal with America’s economic system: capitalism and its political system: democracy. The goals of the assignment are for you to become deeply knowledgeable about these two systems and the ways they are practiced in America, and to do some critical thinking about how they work.

__**1. What is capitalism?**__

- The exact dictionary definition of capitalism is: "An economic and political system in which a country's trade and industry are controlled by private owners for profit" dictionary.com)

Simply put, it is an economic system owned by private individuals for profit. Owned and run by private individuals, not controlled by the government.

However there are several types of capitalism:

Anarcho-capitalism, Mercantalism, Free-Market Capitalism, Social Market Economy, State Capitalism, Corporate Capitalism, Mixed Economy and other. (http://en.wikipedia.org/wiki/Capitalism)

Capitalism is very complex and used and defined in several different ways. It is up to the individual to interpret and use it in which he/she best finds fit.

__**2. What form of capitalism does the United States practice? What are the details of this form of capitalism?**__

- Contrast to popular belief, the U.S does not practice PURE capitalism. The U.S uses a "mixed market economy" which is the combination of capitalism and free markets in order to make a profit. The philosophy behind a mixed-market economy is the idea of Laissez-faire, french for "let be", in which Government will not interfere with business' and their profits as long as everything is legal. (U.S History II - Mr. Tivnan)

__**3. Why does the U.S. practice capitalism – why is it the system that the founders of the United States established?**__

- Capitalism began in Western Europe in the late 1700s and changed the world forever. Due to the drastic positive change it had on Western Europe, the founding fathers established this system in America in hopes it would do the same.

"Wherever capitalism has been tried, the result without exception has been a rapid and dramatic improvement of the human condition. The United States embraced capitalism more than any other nation and, as a result, achieved the most progress". (http://www.capitalismislife.com/capitalism_is_life/Human_Survival_and_Well-being_Depend_on_Capitalism.html)

The United States embraced capitalism at the very beginning, and due to its success continues to use this system as the foundation for the country to this day. It works for Americans and as long as it continues to do so, the U.S will continue to embrace this economic system in which it continues to benefit so greatly from.

__**4. What are the positives and negatives of having this economic system?

__**Positives:

- Competition leads to increase in efficiency and quality. - Hard working individuals, in theory, will prosper. Any one can become some one. - No Government interference = more freedom. - "The magic of property turns sand into gold" - Arthur Young

Negatives:

- Competition, the basis of capitalism, itself will try to destroy competition and create a monopoly. - Unequal distribution of wealth, __**5. What is democracy?

__**- The exact definition of democracy is: "1. A system of government by the whole population or all the eligible members of a state, typically through elected representatives. 2. A state governed in such a way. 3. Control of an organization or group by the majority of its members. 4. The practice or principle of social equality." (dictionary.com)

Simply put, it is a system in which representatives are elected by its members.

For example; in order to become president of the Unites States, presidential candidates must win the majority of the nations vote (through the electoral college system). This is a democratic system.**__

6. What form of democracy does the United States practice? What are the details of this form of democracy?

__**Although some people say it is a pure and true democracy, the United States of America is a "federal constitution republic". This is a political system where the supreme power is held by the citizens who are entitled to vote for officials (such as the president) and representatives (such as senators and members of the House of Representatives) responsible to them (the people).(http://wiki.answers.com/Q/What_type_of_government_does_the_United_States_have)

It is basically a democracy, except for once we the people elect our representatives, they make "our" decisions on our behalf. After our representatives are elected, we basically have no power over them. Which seems unfair, but then again, we are the ones who picked them to represent our voice in the government.**__

7. Why does the U.S. practice democracy – why is it the system that the founders established?

__**The founding fathers established this new land as an escape to freely express concerns and ideas. Once established, and now the symbol for freedom and liberty, it is only fit that the United States practice democracy. A system best fit to satisfy the majority of the people, theoretically of course. This way, the people can have a say in their government, and can easily change their "representatives" upon the next election.

By practicing democracy the people can vote on representatives to represent their thoughts, ideas, and beliefs in Washington and only continue to improve the nation and living conditions for the people.**__

8. What are the positives and negatives of having this system? __**Positives:

- The people pick "representatives" to "take care of them" in the government. - If the people don't like how they are being represented, it can be changed. - Theoretically it is a dream come true. A perfect system

Negatives:

- If enough people vote on bad representatives/ideas it will pass. - Unfair choices - Theories don't always come true. It is only a dream. True democracy is not achievable.**__

9. Please watch Michael Moore’s 2009 documentary “Capitalism: A Love Story” and summarize 4 or 5 of his main points. Also, please critique his arguments – what does he leave out, what problems do you find with his approach, etc. Make sure you relate the film to your earlier research on capitalism and democracy. (So please do these steps in order, so this film should be viewed after you’ve done the work for #1-8)

__**Michael Moore's documentary "Capitalism: A Love Story" does a great job of displaying the downsides to capitalism and even parts of democracy. However he only shows one side of the story and doesn't not give any examples of the wonders capitalism and democracy can do for people. By only showing the negatives he becomes bi-ist making it unfair. To truly get his message across she should have put in a few examples of how people have benefited from capitalism and that it is possible to benefit from it, it is all up to the individual. Overall I enjoyed the movie and found it helpful to understand a little more on what's beneath the surface.**__

__**__**10. What is the relationship between capitalism and democracy? How do they work together, how do their principles coincide and how do they oppose each other?**__**__**__

Capitalism and Democracy go hand in hand, one needs the other to be effective. Through capitalism you can become the wealthiest man in the world, but if you live in a socialist country, all that money is not yours to keep. That is why we need a democracy as the political system in order to give the people a fair chance at wealth and prosperity. However, as the movie showed us, democracy and capitalism are not always the best for everyone. People loose homes, cars, and anything else of value they may own. It is a delicate system which needs to be balanced out perfectly in order for it to work at its highest potential.