Economics 605
30 November 2005
Critical Critique of the Role of Government Under Capitalism
As a dynamic discipline, each economic school of thought continually challenges previous schools and advocates certain ideas and developments. In light of the millions of children that die each year because of the misallocation of food- while the rich get richer, this paper will preface the need for socialist revolution. Certain concepts from the classical, Chicago, and Keynesian schools are treated, while these theories are juxtaposed to reality; including callous wealth distribution inherent to capitalism, environmental un-sustainability due to capitalism, imperialistic warfare at the highest stage of capitalism, and, central to the occurrences just stated, the necessity of an economic profit as condoned, authorized, and/or encouraged by each nation's government. Despite the truly innovative aspects of capitalism and the transformation of the social landscape due to technological advancements, our world has seen great horrors during this epoch. This paper will further refute the logic that the present economic system has allowed for the most efficient allocation of scarce resources and will call for the abolition of the pressing concerns of our day, such as military conflicts, mass poverty, workers oppression, and environmental ruin, will be actualized through a transformation of the role of government.
The founder of the classical school, Adam Smith, failed to account for the short sighted aspects of the economic system he idealized. In fact, the main influences that stimulated the theories he presented in his two major publications were derived from one of the major tenets of the physiocrats- which should be particu ...