Analysis of Capitalism by Andrew Oforma Eze

Analysis of Capitalism

How can we know a capitalist society?
What is the parameter or yardstick for measuring capitalism?
What are the nature and characteristics of a capitalist state?

     These fundamental questions have remained an intractable debate among scholars and students of political science and other social scientists. This work was done out of the curiosity to fill an existing vacuum and to answer these puzzling questions.

     Over the time, some scholars have argued that the parameter for measuring or knowing a capitalist society is by the level of roles played by government and private individuals on the areas of production and distribution. In other words, it means how government or state involves in economic management in the state. If the economic system is managed by private individuals for profit making and other self-aggrandizement, the country in question is a capitalist state. If the government dominates the economic spheres in the state for the interest of the majority, the country in question is a socialist one.

    These analyses are in order, but in the social aspect there is more to it. Socially speaking, it may be baseless, senseless, illogical and politically cum economically deficient to some extent to examine socialist and capitalist states based only in the role of the state without taking into cognizance the type of social relations among the upper and lower classes.

    At this juncture, we have to affirm that these two ideologies- capitalism and socialism have defied all the parameter adopted by several researchers. In addition to the above postulation, we contend that the yardstick for understanding the true meaning of socialist or capitalist states is to know the nature of social relationship and class stratification between those who own the means of production and  those who do not (the have-nots). That is, to know the type of relationship between the ruling class or bourgeoisie and working class or the proletariats. If one is able to discern the nature of the relationship, you are in a better position to know which ideology (capitalism or socialism) is dominating the economic landscape in the state.

      Besides, it may interest us to know that most governments especially advanced western states recently pay primary attention to the social security of the citizenry before any other thing and that does not mean that the states in question are socialists. Some states, whether legitimate or illegitimate (like some military government) provide social services like pipe borne water, electricity, security, quality education, health care services which will be relatively free like in the United States. But that does not mean that such countries practice socialist ideology as we have stated.

Despite the fact that, it is the primary responsibility of the state to provide public goods and services, government provides social services to its citizens due to so many reasons.  It may be or not necessarily to empower the compatriot or to assure development in the state but to some other reasons.
Some of the reasons may be:

1. To curtail the excess demand by the citizens.
2. To maintain or assure relative peace and order in the state.
3. To prevent rebellion or revolt by the citizens against their leaders.
4. To  ensure accountability to the people
5. To enjoy legitimacy of the people since no government can stay long in power without it.
6. To justify its relevance or essence of existence.