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Identify an economic system that relies on private ownership of the means of production...

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mariahlovestrent | eNotes Newbie

Posted June 6, 2013 at 5:26 AM via iOS

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Identify an economic system that relies on private ownership of the means of production and the allocation of resources left to pure market forces.

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Ashley Kannan | Middle School Teacher | (Level 3) Distinguished Educator

Posted June 9, 2013 at 2:17 AM (Answer #1)

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To me, the description being offered is the definition of capitalism.  Naturally, if you have course texts or classroom instruction notes that give you the answer, I would rely on these before anything else.  Yet, I think that the definition of capitalism fits the description being offered.  Capitalism is an economy system that is based on private ownership of the means of production.  In capitalism, external forces like government or social notions of the good do not own the means of production.  Rather, the marketplace is left unadulterated and individuals engage in competition as to who owns the means of production.  Public entities give way to private ones.  Along these lines, the allocation of resources are left to pure market forces.  Thinkers like Adam Smith had profound faith in the marketplace as the embodiment of reason and rationality.  To limit such an embodiment would be unreasonable and irrational.  In this, the marketplace is the most important end because it will determine allocation and control of resources.  In my mind, the economic system of capitalism is being described in the definition given.

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