The Pros And Cons Of Capitalism In America

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Many conflicting ideas exist in America today. That’s what makes it such a great example of democracy. People are allowed to fight for their beliefs to become law in our country. One of the main arguments is the welfare of others. Although America has established that it has and always will be a capitalist country, there are different aspects of capitalism that are up for debate. The main debate is on what type of free-market is better, Laissez-faire or Keynesian. Keynesians are for government protection on the market, and Laissez is for allowing the market to adjust on its own. The most recognized Laissez supporter is Milton Freidman. In his book, Capitalism and Freedom, Friedman believes that government intervention causes economic disaster and devaluation of the monetary system and that the concentration of power can be vulnerable to misuse.
With regards to this, Friedman argues that government regulations cause economic flaws in the market. For example, one well known monopoly industry is the railroad industry. After the Civil War, the government placed regulations and regulators (such as the ICC) on the railroad industry to prevent monopolies. Friedman believes that these regulations did nothing for the industry, “If railroads had never been subjected to regulation in the United States, it is nearly certain that by now transportation, including railroads, would be a highly competitive industry with little or no remaining monopoly elements.” (Friedman, 29) When the

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