Capitalism is a process philosophy that is based on individual rights whereby individuals are able to own and control as they wish, and the supply and demand in the market are coordinated in the best interest of the society. In a capitalist system, the role of the government is to provide peace, justice and impose tolerable taxes. In capitalism, individuals get to own property and operate the property for profits. America was founded on the idea of individual freedom, capitalism and free market. Capitalism has emerged in different settings and has continued to change over time and it recognizes price mechanism as a coordinating device in the economy. Currently, capitalism has evolved into an indirect system of governance controlled by the evolving political bargain whereby individuals have the power to own and control property for personal interests as stated by laws and regulations. Workers are free to earn, labor and capital are free to enter the markets and capital is free to earn profits (Scott, 2006).
Capitalism has impacted the American society by dictating how things are done. The American political philosophy is the belief that all human beings have the right to exercise free will. This means that Americans have the right to own and control property, worship, speak, protect self-interest, associate with others, among other freedoms. The concept of freedom is dictated by the laws, regulations and customs and so in order to enjoy individual freedom, it is necessary to acknowledge the rights of others and this is known as justice. People are treated justly if they have the freedom to work and enjoy the fruits of labor. Capitalism is a process philosophy that grants people the right to own and control property and do so according to their own interests. The American society therefore is more or less based on capitalism (Scott, 2006).
Capitalism has also impacted American government and particularly the party platforms of political parties. The Democratic Party has been there for more than 200 years and it stands for equal opportunities and justice for Americans while protecting the rights of the workers. The Democratic Party is based on the principle that wealth and power should not be the criteria that people use to rule and that the values of hard work should guide Americans. Democrats reproduce capitalism by supporting entrepreneurship and government intervention to solve economic problems brought about by capitalism. While capitalism is based on freedom of thought and action on private property rights, division of labor, competition, profitability and economic justice, democracy is based on consent and political equality as governments are formed by majority votes (Democratic National Committee, 2013).
Democrats derive from capitalism as democracy requires individual economic rights that are different from the state. The political system resulting from democracy enables the development of free markets, ability to own and control property, profitability, competition and economic justice which is the essence of capitalism. Founders of capitalism understood that economic freedom would automatically lead to political freedom and economic abundance which is the essence of the Democratic Party.
However, the Democratic Party has historically been supporting the working class and it stands to protect the rights of the working class. When America was founded, most of the citizens were farmers and so the Democratic Party worked to represent the rights of these farmers. After the civil war, the Democratic Party use federal tax money to redistribute wealth among the poor in the south from the wealthy in the north. This approach was seen to support the working class and it was still in support of capitalism. The Democratic Party did not interfere with the freedom to own and control property but it obtained tolerable taxes from the wealthy to support other parts of the economy. This is in line with the role of the government in the capitalist economy which is to ensure peace and justice and impose tolerable taxes (Democratic National Committee, 2013).
The Republican Party, since its inception has been in support of individual rights and freedoms against the intrusive government. The republic party has always supported the right to own and control property and that is why it is considered as a party for the wealthy and industrialists. In a capitalist economy, individuals are given the right to own and control property and the government should have minimal interference on this right. The Republican Party has been in support of capitalism because it supports features of capitalism. However, this does not mean that the party does not support the rights of the working class and the right to freely enter the labor market. On the contrary, it supports the whole concept of capitalism (Republican Party, 2009).
The Republicans have publicly declared that they stand against the interference by government and regulations, and that they protect free markets, capitalism, entrepreneurship and the American way of life which is based on capitalism. Many Republicans support monopolies and their ability to control markets with minimal government intervention and regulations. Republicans blame the government for any problems arising from the capitalist economy hence demand minimal government intervention. This shows that Republicans fully derives from capitalism which supports the right to own and control property with minimal government regulations.
Since the time of the civil war, the Republican Party was considered the party of the north which mainly comprised of wealthy Americans. In terms of economic issues, the republic party supported capitalists and the wealth by supporting their right to own and control property to their best interests. The Republican Party has always supported economic and social change in terms of capitalism and industrialization. By supporting capitalism and what it features including the right to own property, free entry into the market, using capital to make profits, economic justice and division of labor, the Republican Party platform has been based on capitalism all along (Republican Party, 2009).
The economic aim of both Democrats and Republicans is to protect and reinforce the capitalist system. Both the Democratic and Republican parties and their platforms are impacted by capitalism as a process philosophy that guides the American way of life. However, the Democratic Party and the Republican Party have different approaches in the way they respond to the words “federal government” and “capitalism” (Wolf, 2013). The Democratic Party tends to respond more positively to “federal government” more than they do the word “capitalism”. On the other hand, the Republican Party responds more positively to capitalism than to the federal government. But this does not mean that democrats are less concerned with capitalism. Both parties respond positively to the free business, freedom to own and control property, entrepreneurship and competition which all arise from capitalism. There are only minor differences in the party platforms of the democrats and the republicans as they are all based on capitalism (Wolf, 2013).