by F.M

Created on: May 13, 2009

Given the economic climate, strong advocates of capitalism are scratching their heads to explain how the perfect economic system is becoming increasingly an afterthought for some of the most advanced industrialized nations. Europe has already begun to socialize most of its industries. America's brother up north, Canada, has always had a government-run health care system. These so called socialists experiments are not the ones that created the financial crisis. The capitalist's unguided hand did. Government regulation could have prevented the financial turmoil. If you must choose between either two economic systems, socialism would be your way to go.

Capitalism is expansive. Once it capitalizes a particular resource and it depletes, the system inherently pushes itself outwards to earn additional profits. While the price of the resource changes according to its location, Americans should not be surprised to ear that some of its swine comes from Canada and Mexico. Lumber is also a resource heavily extracted from Canada. There is lumber in the United States but because there is more wood in Canada, Americans purchase cheaper Canadian wood. But the resource itself will deplete in Canada, and eventually these companies will need to expand, possibly in Europe, to continue to sell their lumber. It's that equilibrium. When there is a lot of a resource, the price of the product is inherently lower and vice versa. But what happens if the product disappears? Trees are an important resource that we cannot lose.

Capitalism is expansive but how much do we really need? Do we need to have all of those barbecues or TVs? Companies have to find a way to sell you a product. Take the TV. We moved from the big box-y kind to the flat and small kind. Granted, the products have become much more sophisticated but also very expensive. The resources required to even produce these items deplete the environment and is waste for consumers. But that is the only way companies can survive. That's why Apple continues to create different Ipods every year.

Capitalist expansion hits poorer nations the hardest. Because of previous trades, contracts and treaties, African countries do not reap the rewards from the resources they extract to sell to countries in the global north. While corporations may enact their ''fair trade'' policy, it is still not enough to quell the economic pressures African nations must face. They have debts that supersede the budgets of the most advanced

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