Does the state control capitalism, or does capitalism control the Essay

Does the state control capitalism, or does capitalism control the state Answer by referring to at least two authors - Essay Example Introduction There are several definitions about the government forms of capitalism; however, many scholars have narrowed the definitions into two distinct perceptions. Firstly, capitalism can be described as a form of an economic system where the government controls all the means of production and the trade industry. In such a situation the government tends to use all the possible production means to exploit the citizens at the interest of the state.1 Russia is one of the major countries practicing this kind of capitalism where all projects are initiated by the government, financed by the state and the revenues collected are contained by the state.2 The second distinction entails a condition where the government controls private capital firms such that, the operations are defined and controlled by some acts or policies enacted by the government. However, the level of control in private firms would now greatly depend on the extent of the government involvement. ... An evidenced by countries such as the United States where the government control on private firms has resulted in an economic crisis that can be backdated all the way back to the early 60s, it can be seen that even if the general control of the private firms is left in the hand of the owners, the government will always find a way of establishing control by using various tools such as the sneaking in of policies aimed at imposing regulations that will allow them to effect more control. In the essence of war, the government always ensures the all the necessary elemental bodies concerned with the provision of war materials are prepared in time. In addition to this, most governments step in to control farmers produce and food production industries with an aim of sustainining its’ citizen during the warfare; this is a clear indication of how the government engagement in capitalism ends up in its controlling the economy. Several questions have been raised as to whether the governmen t maintains good roles pertaining to capitalism. However, several results indicate competition is controlled so as to create capitalism and this is different from the other forms of capitalism. Capitalism is never simply engaged in the collection of revenue, but the state officials would exercises extreme exploitation of the workers which, is very contrary to the interest of the society.3 General state control on capitalism Despite the fact that individual ownership of private organizations has been in existence for quite sometimes now, most governments participate actively in the regulation of the operation and control of vital industries such as the ones concerned with the production of food and exports amongst others. Most economists point out that the state can become a very