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__ Capitalism & Democracy - APUSH Summer Assignment __

1. What is Capitalism?
Capitalism is a social economic system that can be found all over the world nowadays. The simplest definition for capitalism is producing, buying and selling goods. Also, it means that once a person buys a good in one place, they can now sell that good for a different price to make a profit. To go into deeper thought, capitalism first started off as mercantilism, and was originated in Rome, but later to change to capitalism and be used all over the world. In capitalism there are different classes that work together in order to form this system and to keep it running and working properly. The working class is there to make sure that all goods are produced and then sent out to be sold. The capitalist class actually sell the goods that the working class produce. All profits go towards the capitalist class, where the working class do not really make any profit.

Capitalism in some opinions is what makes an economy completely fail or be a complete success. Goods that are produced in order to be sold for a profit have to be set a price and then can be sent out to be sold. In some cases, some people have to spend money to make money in capitalism. Individuals that practice capitalism sometimes make a large profit from the goods they are selling. If people practice capitalism, that means that everyone has to take part in the production and selling of goods that are made for the economy. Hooker, Richard. //Capitalism//. Washington State University, 14 July 1999. Web. 17 July 2011. [|.]
 * Sources:**

//What is Capitalism?//. World Socialist Movement, 13 Aug. 2006. Web. 17 July 2011. [|.]

2. What form of capitalism does the United States practice? What are the details of this form of capitalism?
The United States doesn't just practice capitalism but also socialism, therefore the United States has a mixed economy. Socialism is another type of economic system that refers to production, distribution, buying and exchange of goods that are done by a whole community. A mixed economy means that a country (such as the United States) practices both socialism and capitalism.This means that there are certain freedoms and regulations that are established for the nation, but these freedoms and regulations are constantly changing. Some people believe that having a mixed economy is a horrible idea and should be gone from the United States, but others like the idea of the mixed economy. Some think the mixed economy is a bad attempt as to gain freedom without the government. Others think otherwise.

The United States was originally thought of as a capitalist nation, but later was recognized as a mixed economy. This was recognized by having life, liberty and the pursuit of happiness. Once those were founded, the idea of having a capitalist nation had to be relooked at. Capitalism however, did build up the economy for the United States. Ever since the United States was thought of as a mixed economy, it has a been a disaster. This is because of constant changes, production and distribution of goods, and the nation as a whole. The regulations that the United States currently are enforcing, are bringing nothing but negative results. Results can be so disastrous that they have to be removed, but even if some regulations are disastrous, people have to deal with them because the government will not remove them from the nation. This is what the United States practices as a result of capitalism. Landauer, Jeff, and Joseph Rowlands. "Mixed Economy." //Importance of Philosophy//. N.p., 2001. Web. 17 July 2011. [|.]
 * Sources:**

//Capitalism FAQ: Practice//. N.p., n.d. Web. 17 July 2011. [|.]

3. Why does the U.S practice capitalism- why is it the system that the founders of the United States established?
The United States practices capitalism because it is an expressed form of the ideas from the Enlightenment period and how those ideas affected the economy in this present time. Also, it has an individual express oneself through different changes, ideas and conditions. The economy of the United States is constantly changing, growing worse and worse each year. Since capitalism is about the productivity of goods, if goods have stopped being produced, the economy will have a decrease therefore causing problems for the people living in the United States. The United States uses capitalism to express the ideas the Enlightenment period gave the U.S. so many years ago.

The founders of the United States used capitalism because they were all strong believers in the Enlightenment period and enjoyed the idea of the productivity of goods being created, exchanged and sold. The economy back then is very different than what it is now, but there are still goods being made and traded throughout the United States. The founders of the U.S. proved capitalism to be very useful in the production of goods and in exchanging them to be sold. It showed that the economy can be made up of different relationships and compromises. Capitalism is almost solely based on distributing goods, but also how they are produced, the founders used this to create this system in the United States. Hooker, Richard. //Capitalism//. Washington State University, 14 July 1999. Web. 17 July 2011. [|.] "Understanding Capitalism Part 1: Capital and Society." //Rational Revolution.net//. Rational Revolution, 22 May 2003. Web. 17 July 2011. [|.]
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4. What are the positives and negatives of having this economic system?
One of the most important positive effects of having this economic system is having more freedoms. Where there is freedom, there is usually equality, and where the United States is somewhat capitalist, there is a lot of regulations that are made in the nation. Of course, there are many freedoms and privileges that the people of the U.S. get. During World War II, there was an increase in the productivity of goods that were needed, and it was considered a good thing to have an increase. Of course, this later lead to more problems in the United States. Another positive side of practicing capitalism would be to actually have a positive effect on the economy itself. This means that the economy would be "good" and that capitalism will maybe have a higher chance of staying as capitalism, meaning it will have a higher life expectancy.

Along with positive effects, capitalism also has many negative effects as well. One major negative effect is that regulations and conditions that are within capitalism are constantly changing. The people of the United States do not like how they have to readjust to new regulations constantly, some are disliked so much that they take them away, but others people just have to deal with. The capitalism system for the economy is very unstable and uncontrollable. It increases, then decreases, and so on and so forth. Also, the free-market system causes problems for capitalism and in the future the economy for the United States may collapse. By having capitalism, the United States gains freedoms, but loses control of how much they get changed. The economy would change, but for some wrong reasons and that could the United States. Capitalism in one's eye could be a wonderful idea, but in another eye, an awful idea. //A Capitalist Criticizes Capitalism//. World Socialist Movement, 13 Aug. 2006. Web. 17 July 2011. [|.]
 * Sources:**

"Capitalism." //Western Global Culture//. Western Culture Global, 2009. Web. 17 July 2011. [|.]

= 5. What is Democracy? =

Democracy is a political government for the people by the people. This means that everyone has a say in this type of government. Abraham Lincoln once made a very famous statement that democracy is a government "of the people, by the people, and for the people." Democracy is very popular in some parts of the country because technically people have a say for once in government. Everyone has a say, but sometimes, the people elect representatives in order to have the final decision made for the community. Democracy has many forms and some require different tasks to be done in order to be called a democracy. Democracy is derived from the Greek term "demos" which means "people," therefore, a democracy is a government for the people.

Democracy is sometimes associated with freedom, but the two words can have completely different definitions. Since democracy means government for the people, people think that this means automatic freedom. This is a common mistake. Freedom cannot really be given just because other people believe so. It can help to have a numerous amount of people believing that freedom would be a good thing, but it won't automatically be granted. Democracy is just the beginning of having and working towards freedom. It is like a baby-step towards freedom and the people of a community have to work towards it in order to gain freedom. Democracy is a political government that is for the people of a community. Kolar, Miroslav. "What is Democracy?." //whatisdemocracy.net//. N.p., 17 Aug. 2005. Web. 18 July 2011. [|.]
 * Sources:**

"What is Democracy?." //America.gov Archive//. N.p., 3 May 2008. Web. 18 July 2011. [|.]

**6. What form of** democracy does the United States practice? What are the details of this form of democracy?
The form of democracy the United States practices is Representative Democracy. This means that the United States elects officials to help make the decisions for the country. In a Representative Democracy, people from the government are elected as representatives to help run the nation. These representatives play a role in the development and growth of this nation by casting their thoughts and opinions on how this country is functioning. Representative democracies have leaders that govern and are superior over others of the nation. Some people believe that a Representative Democracy is not a true democracy because the elected officials act like elected dictators. This can either hurt a nation or protect a nation, but everyone has a different opinion about the Representative Democracy.

When officials are elected, there are obviously many rules that must be followed because technically it is not an elected dictatorship. People are "supposed" to have a say of what is happening in their community and nation. In this form of government, no one is allowed to have complete control over the people of the United States, according to the Constitution and the system of checks and balances. Also, there is too much pressure if one person governs the entire nation, therefore, there are more elected representatives that share power in order to fulfill some opinions of the people of the United States. This form of government is what the United States practices. **Sources:** Kolar, Miroslav. "What is Democracy?." //whatisdemocracy.net//. N.p., 17 Aug. 2005. Web. 18 July 2011. <span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">[|<http://www.whatisdemocracy.net/>.]

<span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">Cooray, Mark. "4.4 Representative Democracy - Not Democracy." //Political Freedom and Democracy//. N.p., n.d. Web. 18 July 2011. <span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">[|<http://ourcivilisation.com/cooray/btof/chap4iv.htm>.]

7. Why does the U.S. practice democracy - why is it the system that the founders established?
<span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">The United States practices democracy because the founders of this nation did not want to be like Great Britain. In Britain, everyone was ruled by a monarch. When they moved to America, they did not want to have the same form of government, they wanted to have something different. This is when democracy was created by the people, for the people to have a say in their community. Also, the American Revolution had an influence on why the United States practices democracy because once the Declaration of Independence was created in 1776, that was the first initial step that the Americans currently living there wanted change. The American people wanted to go from having a king rule over the nation to having the people have a say in what they want their nation to be like.

<span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">When the Declaration of Independence was created, Thomas Jefferson used the ideas that all men were created equal and that everyone should have the right to "life, liberty, and the pursuit of happiness." By using these statements, Jefferson proved that monarchy was out of the question for when they decided how the new nation should be governed by. Later the American Revolution and many other revolutions occurred around the world and monarchy was eventually taken over by democracies. This means that monarchy was never a very popular idea to begin with and people much rather have a say in their government then not have a say at all. This is why the United States practices democracy. <span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">**Sources:** <span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">History of Democracy." //Oracle: ThinkQuest//. Oracle, n.d. Web. 18 July 2011. <span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">[|<http://library.thinkquest.org/26466/history_of_democracy.html>.]

8. What are the positives and negatives of having this system?
<span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">In the United States, we have Representative Democracy, and this is a very positive effect on the nation for many reasons. Positives of having a democracy in the United States, would have to be first of all, people can have a say in what they want from a government. If the U.S. had monarchy, no one would have a say in anything. This gives people the say and sense of participation in the government. The United States is usually organized in its government, which is also a positive for democracy, there is more organization. There is freedom of "self-government" and responsibilities that people can explore with having a democracy. There can be changes in a democracy, that is done by the people. In a democracy, there is a say that people in a community have, and they can have the power to change something if they all vote on it together. <span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">On the other hand, while having positives to democracy, there are also some negative effects that democracy can have on a community. First of all, having a democracy can be dangerous in a way because some people have completely opposing views and opinions. This can cause mobs and can turn very dangerous especially when people have to vote for new representatives that express different views. That is another negative to having is that the people in a community have to elect new officials to serve terms in office. This can cause problems for the people and for the officials running for office. Finally, people in a community may be focused too much on what their own views are and may end up making the wrong choice when it is time to vote. This is probably one of the major disadvantages with a democracy. There are many positives and negatives of having a democracy, which is what the United States practices as a political system. <span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">**Sources:** <span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">"What is Democracy?." //Defining Democracy//. N.p., n.d. Web. 18 July 2011. <span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">[|<http://usinfo.org/mirror/usinfo.state.gov/products/pubs/whatsdem/whatdm2.htm>.]

<span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">Oak, Manali. "Advantages and Disadvantages of Democracy." //Buzzle.com//. Buzzle.com, n.d. Web. 18 July 2011. <span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">[|<http://www.buzzle.com/articles/advantages-and-disadvantages-of-democracy.html>.]

===9. Please watch Michael Moore's 2009 documentary "Capitalism: A Love Story" and summarize 4 or 5 of his main points. Also, please critique his arguments- what does he leave out, what problems do you find with his approach, etc. Make sure you relate the film to your earlier research on capitalism and democracy.=== <span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">Michael Moore's documentary "Capitalism: A Love Story" has very strong opinions on what capitalism really means to him and what other people in the United States think of capitalism as well. The most important point of his documentary is that capitalism is evil. To Moore, it's as plain and simple as that; capitalism is evil. There are thousands of houses getting foreclosed everyday because the people who own them are going bankrupt and do not have the money to pay the bills or loans they owe banks. Nowadays it's either "people who have it all" and "people who have nothing," there is no in-between. To put it simply, capitalism in America, (to Michael Moore's definition) is a system of "taking and giving, mostly taking." In the U.S. because of capitalism, the poor is becoming poorer, and the rich is becoming richer yet can become poor.

<span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">Another main point in this documentary is that America is becoming all about foreclosures, reselling, and then making a profit. For example, a company forecloses houses and apartments and then resells them to make a profit, and they do not care at all about the people they foreclose. This company is called Condo Vultures, a name in which suits them perfectly, and the workers, CEOs, and founders all agree that it suits them perfectly as well. All they care about is foreclosing homes to make a profit in order to become richer. Capitalism back in the earlier 1900s was the "highest standard of living" and was all about having people get rich off of capitalism. Along with foreclosed homes corrupting America, the political powers and presidency who have "control" are also coming to a downfall. <span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">Businesses are becoming corrupt and failing to do what they need to do for America. Wall Street LOVES the idea of capitalism and certainly makes off with more money than anyone can imagine. People all over the United States are losing their jobs and millions are encouraged to live off of loans that will later increase in interest causing them to go bankrupt. Republics care nothing of businesses that are going bankrupt and failing to do whatever they do. Companies around the United States have employees taking horrible income, and when they pass away, the companies gain money and income. For example, a young woman slipped into a coma, she worked at Walmart, and Walmart gained $81,000 because of her death. The family of that woman had to pay $100,000 for medical bills and $6,000 for a funeral, and Walmart did not give a single penny to that family. Companies simply do not care about some employees. <span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">Wall Street representatives have a very influential say in what the president of the United States thinks about capitalism. Ronald Regan was elected into presidency because he was influenced and listened to the idea of capitalism. President Bush in 2008 said that "Capitalism is the best system ever devised" because of the "freedom to choose." Capitalism was a very high point of the nation and the nation thought that nothing could ever bring down the nation. "Time is money, lots of money," was the life lesson for children and teenagers in America. In capitalism, anyone could practically get away with anything. Budget cuts are happening all over the country, capitalism was becoming popular and powerful. In the long run, capitalism was eventually going to ruin democracy. <span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">Everything that was capitalism became crashing down on September 15, 2008. Just weeks before the election of the new president, the economy collapsed, and it collapsed fast. In a matter of two days, the economy went from good to bad to worse. Wall Street was scared and was in so much fear. Then there was money, theft, fraud, and fear from almost all the companies and businesses on Wall Street and all over the United States. Capitalism was hated, and people wanted it gone. To almost everyone it was a consider a sin, and that was Michael Moore's final point, that capitalism is a sin and people want it gone. Some of his final words in this documentary were that "Capitalism is an evil and you can't regulate evil." In order to get rid of an evil, like capitalism, you have to destroy and replace it with good, and good in this case is democracy. <span style="background-color: transparent; color: #000000; display: block; text-align: left; text-decoration: none;">Michael Moore's documentary about capitalism has very useful information on America and capitalism and what capitalism has done to America over the years, but only in a negative way. There are no positive effects of capitalism in this documentary, only negatives. Of course, this is his own opinion of capitalism, so he has the freedom to put only negative effects. Also, there is no talk about what businesses and companies are taking from the people of America, and not what it is giving to the people of America. There is also no real background information on capitalism accept in the beginning about Rome. There is no talk about the productivity of goods and how it has positive affect on America. Michael Moore's approach on everything in capitalism is very direct. He goes right after the information he wants and tries very hard on trying to get the truth on companies around the United States and why they support capitalism. Moore is a very direct person which is why he created this documentary on the effects of capitalism. "Capitalism: A Love Story" is a very useful and informational documentary of capitalism and how it has shaped America over the years. //Capitalism: A Love Story//. Dir. Michael Moore. Paramount Studios, 2009. //PutLocker//. Web. 1 Aug. 2011. [|<http://www.putlocker.com/file/2570EFDBFD943D78#>.]
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10. What is the relationship between capitalism and democracy? How do they work together, how do their principles coincide and how do they oppose each other?
The relationship between capitalism and democracy is that they are both systems within the United States that could make or break this country. Capitalism is a type of economic system while democracy is a type of political system. Both systems work together to balance out and keep this nation in tact, but could also destroy the nation as well. The two systems work together by creating justice within the nation. In this nation, some believe that there must be democracy in order to organize capitalism, others believe that democracy was created through capitalism. Democracy is about sharing power and using it to create more equality wherever needed, but capitalism is about not sharing any power and it has desire to get more power. With this two ideas, the systems balance out to create a union in the nation.

Although capitalism and democracy could be systems that balance out, they are also two systems that could destroy this very nation. Capitalism and democracy can "collaborate to an extent, then battle each other." Capitalism is always changing, while democracy tries its best to stay the same and not change. Sometimes the two systems cannot balance out in the nation and therefore causing the nation to rise to a boiling point in which the country will crash. Capitalists are trying to overthrow the idea of democracy in America because of its power it has formed over the years. Some people are in favor of a more equal nation, while others are in favor of more money and power in the nation. //"Democracy and Capitalism are like two persons bound in a tempestuous marriage that is riven by conflict and yet endures because neither partner wishes to separate from the other.”//**- Robert Dahl** "Democracy and Capitalism." //The Ethical Spectacle//. Apr. 1996. Web. 1 Aug. 2011. [|<http://www.spectacle.org/496/demo.html>.]
 * Sources:**

"The incompatibility of Capitalism and Democracy." //Futile Democracy//. N.p., 10 Oct. 2009. Web. 1 Aug. 2011. [|<http://futiledemocracy.wordpress.com/2009/10/10/the-incompatibility-of-capitalism-and-democracy/>.]