The Impact of Current Crisis in Western Capitalism on the Leadership Role of the US

TheImpact of Current Crisis in Western Capitalism on the Leadership Roleof the US

TheImpact of Current Crisis in Western Capitalism on the Leadership Roleof the US

Thecurrent forms of capitalist economies have inequities and are unableto deliver the primary goals of an ideal capitalist economy eventhough the global society has been priding itself on the success ofCapitalist system which is lauded to be an efficient way ofproductivity. This current crisis in the Western Capitalisminherently implies that pure capitalism may not have a place in thecontemporary society, and since the US has failed, the world will nolonger have to value and cherish the country like a champion and anemblem of capitalist anymore.

First,as documented by Mitchell (2009), a capitalist economy is the kindthat thrives on private ownership as the means of productions and ischaracterized by limited government intervention. In essence, anideal capitalist market should be able to regulate itself, settingprices in a manner that assures profitability and eliminatinginefficiencies by itself without government interventions. However, alook at the West practices mainly reflects problems in thecapitalism, and this particularly has to do with market issues, suchas the 2008 financial crisis and heightened regulations.

The2008 bank credits were perhaps the greatest test of capitalism(Mitchell, 2009). The financial crisis had far-reaching consequencesof the global economy, such as threatening the collapse of the majorfinancial institutions and causing a drop of stocks worldwide. Inresponse, the West had responded by adopting various regulations,which negate the essence of capitalism. Moreover, although theeconomy recovered in many aspects, some areas such as economicinequalities remain problematic.

Inthe article &quotCapitalism at Bay&quot, the author highlightsvarious problems with Western capitalism, attributing the failures tolack of an elaborate government conducive for ideal capitalism. TheUnited States also seem to have failed concerning encouragingglobalization, which would have also served as a platform for thegrowth of capitalism. As Ghemawat (2007) asserts, contrary to theclaims that the global population is drawing closer to each other,the world is still apart because interactions and business activitiesare still localized. These results are because of various barriers,especially those arising from state regulations.

Itis worth noting that the US has been actively engaged in promotingcapitalism, which it considers as an ideal system for enhancingproductivity and sufficiency for rapid economic development. Theefforts of the US in encouraging capitalism have been notablyevidenced through its leadership, as well as domestic policies andforeign policies. In this regard, the fact that there is a crisis inthe Western capitalism invites the rest of the world to question theappropriateness of the capitalist system in helping realize economicgoals (Mitchell, 2009). Therefore, it is expected that the rest ofthe world will no longer count on the US and the rest of the West asa leader. Indeed, this view is supported by Noble(2012), who discusses that fading capitalism and other social andeconomic weaknesses are to blame for the US weakening exceptionalism.

Inconclusion, the current crisis in the Western Capitalism inherentlyimplies that the US has failed, and therefore, the world will nolonger have to value and cherish it like a champion and an emblem ofcapitalist anymore. The West economic environment evidences financialproblems, increased regulations, which altogether invite the rest ofthe world to question the appropriateness of the capitalist system inhelping realize economic goals.

References

N.A(2008).Capitalism at Bay. TheEconomist.389.8602 (Oct. 18, 2008): p16(US).

Ghemawat,P. (2007) Whythe World Isn`t Flat.McGraw Hill.

Mitchell,E(2009).The Morals Of The Marketplace: ACautionary EssayFor Our Time. Stan.L.&amp Pol`y Rev. 171

Noble,D. (2012). Deathof US: American Cultures and the Ending Exceptionalism.University of Minnesota Press.