Question

How does America’s economic system affect your day-to-day life? How would your life be different if you lived under socialism or communism? How would it be different if you lived under a purely free market system?

Answer 1

As an American, I partake in the economic system every day, everything I do is impacted by this system. Under the U.S. economic system we have been provided a number of opportunities, because we have the decision—freedom—to decide what we choose with our money, our living arrangements and our family life. Most often Americans don’t see how much the economy actually serves them, because of our economic system we are able to have Government institutions like the USPS and have an individual business. This is given to us by our fundamental rights of capitalism, but under a different type of economy we would lose our rights.

Under communism we would lose all of the private sector, places owned by individuals would soon become government owned or approved, but it forces economic opportunity to be lessened. Countries who have tried to participate in sole communism have been able to watch the opportunities dwindle. Often these countries are struggling a great amount with poverty. Socialism calls for the government to own and operate only key enterprises, especially those that directly influence public welfare. If following just one economy we would lose the ability to support the nation, debt would increase, and luxuries would be a rarity.

If operating under a pure free-market system, the economy would be insufficient at providing for the young, old, sick, and the environment. Essentially, any government entity that provides aid would be under private ownership. This could also be a potential for problems because mail would no longer be run through the government, water and sewer mains could be run by different companies using different materials within a city, and the military would be moved over to private ownership, as well as many other issues.