Fraternity-Testvériség, 1960 (38. évfolyam, 1-12. szám)
1960-12-01 / 12. szám
8 FRATERNITY WHAT ABOUT AMERICAN CAPITALISM? What kind of economic system does the United States have? Ask that question in any country around the world, and you will be told — quite correctly — that the U. S. has a capitalist economy. But what does the term “capitalism” mean to people overseas? For Communists it means “Wall Street bankers”, “monopoly”, “exploitation”, and the like. But aside from Communists, there are people all over the world, otherwise friendly toward the United States, who dislike capitalism or what they think it stands for. Many of them live in countries where the word “capitalism” — for a variety of reasons — is held in disfavor. In Europe capitalism may be associated with economic exploitation of workers. In Asia it may be associated with colonialism. And many people throughout the world regard capitalism as a system that benefits the few — the “capitalists”. Such misconceptions as these hamper our country’s efforts to build broader understanding overseas. Correcting them is a job for all of us, especially for those who write to friends and relatives abroad. But what should we say to them? As we know, the notion that “big business” alone — or any other economic or interest — rules the United States is false. Economic forces by themselves are not predominant. We have a democratic system of government, with elected officials and law-making bodies. These representatives of the American people have the power and prerogatives to control and regulate the country’s business enterprises. And have done so vigorously on many occasions. Another old-fashion idea about capitalism that does not apply to the United States is the notion that it inspires colonialism. American investments abroad have not led to the acquisition of a colonial empire. Instead, territories such as the Philippines and Puerto Rico, which the United States might have retained, are now self-governing. But perhaps the most significant way in which the American economic system differs from fixed ideas about capitalism is this: The American system has been enormously successful in benefiting not the few, but the many. There are a host of facts to prove this statement quite conclusively. For instance, the national income is more widely and fairly distributed than ever before. Today slightly more than three-fourths of the total national income is labor income — that is, wages, salaries, social security benefits and related payments. One-eighth of the total income goes to proprietors — including farm owners and self-employed business and professional people. Only one-eighth goes to investors as dividends, interest and rents. In other words, the lion’s share of America’s productive capacity adds year by year to the economic well-being of the nation’s workers and salaried people. Allowing for price changes, the average American
