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Introduction of Introduction to Assessing Whether the UK is a Socialist or Capitalist Economy
This essay deals with the discussion of the topic "Is the UK a Socialist or Capitalist economy" and sheds light on the different aspects of it. However, this essay also helps in defining the capitalist notion of the country and also shows the production of different kinds of factors that are continuously affecting the economy. Modern capitalism did bear within the comprehensive Industrial Revolution occurring by the end of the 18th century but also came with some challenges for the economy. However, the essential and the main feature of having capitalism are to have the motive to gain profit and centralize the key aspects.
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Thesis statement
Yes, it is affirmative that being socialist or capitalist impacts the overall economic structure, yet some proceedings are needed to be made to confirm so.
Discussion
This part of the study idealized the entire topic and helps in getting a vast amount of information regarding it. So, the question mainly lies between two different aspects if the UK has a capitalist economy or a Socialist economy. As per the view of Goodwin and Punzo (2019), a capitalist economy mainly possess capital assets, which can be mines, railroads, construction sectors, and even some factories. However, these can be privately owned and controlled but the labour is purchased there for monetary wages. However, it can be also mentioned that a capitalist economy contains a "two-class system" that comes with private ownership and with a motive for profit. Thus, this will have much more minimal interventions of the government and bring a competitive environment around the economy. As a matter of fact, these are some of the features that are associated with a capitalist economy.
Moreover, a Socialist economy will mostly consider speaking about an "economic and political system" in the country. According to the study by Derlien (2020) suggest that having a broad "economic and political system" brings up the production to be under the government and the state. However, a socialist economy is clearly based on the idea that resources are under public ownership and under common ownership. Thus, leading to more production of leads and maintaining an equal society. So, for the culmination, it can be idealized that the UK can be classified either wise for both of the aspects. However, it is clearly visible that the UK is a capitalist country and has a capitalist economy. According to the visible factors, the UK is listed among the richest country among the other six rich countries present in the world.
The reasons that contribute to this factor are that the UK has different kinds of capitalist policies. These policies mainly act as the backbone of the overall economy and also maintain a societal paradigm. For example, these aspects can be as the "National Health Services" and the "Welfare benefits of the UK". According to Zanoni (2019), the UK has a capitalist economy but the UK has also a 'highly developed social market economy". Due to its largest economy, standing sixth in the rank, it constitutes more than 3.4% of the nominal GDP of the world. It has been also in the ninth position after the UK purchased the Power Parity (PPP), which resulted in it becoming the 22nd highest per the "GDP per capita". So, the evidence can be used for proposing that the UK is a capitalist economy. However, it can be also mentioned that the prevalence of most of the "production factors" that are present in its economy are owned by private individuals. Apart from that, these production factors are based on having "free-market transactions".
The United Kingdom is widely recognized as a capitalist economy, where the means of production and distribution of goods and services are predominantly owned and controlled by private individuals and businesses. The country has a long-standing history of free market policies, limited government intervention, and a legal framework that promotes private property rights and contracts. According to data from the World Bank, the UK's GDP was valued at $2.85 trillion in 2020, making it the sixth-largest economy in the world (Perrotta and Perrotta, 2020). The country's economic output is primarily driven by the services sector, which contributes around 80% of GDP, with industries such as finance, professional services, and retail playing a significant role. The UK also has a strong manufacturing sector, accounting for approximately 10% of GDP and employing around 2.7 million people.
Some more shreds of evidence can be also presented that can be used for highlighting the topic. According to the study by Hodgson (2021), the modern capitalism did bear within the comprehensive Industrial Revolution occurring by the end of the 18th century. As a matter of fact, this Revolution took place within Great Britain and spread throughout the overall Western European offshoots. However, being a capitalist economy the development made was largely due to the spontaneous changes and occurrence of a "chain of events". Moreover, these events were mainly accustomed according to the landed aristocracy of the market forces. However, this simultaneously created a belief that widespread within the "economy efficacy" of the civil society. Hence, this downgraded the total role of the economic state and acted as an economic agent.
The United Kingdom sought capitalism as a whole economic system where private factors had control of their properties. This made it to have control over their properties but ion according to their interests. As mentioned by Symanska (2019), supply-free prices brought up the demand in the markets that allowed the economy to serve society's best interests. Thus, this will have much more minimal interventions of the government and bring a competitive environment around the economy. As a matter of fact, these are some of the features that are associated with a capitalist economy. These were some of the factors that led the UK's economy to have capitalism within it. But some aspects influence the capitalist economy in modern times. As mentioned by Heitmann (2019), an economy with a capitalist system mostly includes a "money-oriented economy" within itself.
This includes the pricing of raw materials and the production of different types of goods. However, individual income levels and market forces also play a critical role in keeping the economic state in the form of a capitalist economy. So, these factors influence the overall, structuring of the capitalist economy of the UK and are dedicated to have greater extent. Thus, having a greater extent as per the market forces, it results in forming several kinds of interactions (Symanska, 2019). These interactions yield plans that help economically among private businesses. So, the main benefits can be visualized from it where a capitalist economy allowed the UK to gain economic freedom and provide consumer choice. So, the evidence can be used for proposing that the UK is a capitalist economy. However, it can be also mentioned that the prevalence of most of the "production factors" that are present in its economy are owned by private individuals.
A capitalist economy has its own benefits but also comes with some challenges that are needed to be dealt with. According to the study by Stilwell (2019) suggest that environmental costing and externalities can be some of the main issues that prevail over some other factors with it. These are immobility, and materialism in work proceedings with the power of implementing monopoly into the system. Thus, having a capitalist economy sometimes leads to different kinds of inequalities in the overall income ratio. As per the view of Bili? et al. (2021), the firms that are present can implement a monopoly upon the customers and the workers also. Hence, it leads to such a situation that a "high profit-earning motive" will consume the resources as it will lead to different kinds of issues. This then leads to leaving out environmental footprints and then destroying the natural balance.
Therefore, The UK's capitalist economy is characterized by a high degree of competition, innovation, and entrepreneurship. The country has a well-established financial sector, with London being one of the world's leading financial centres. The government's approach to regulation is generally regarded as business-friendly, and the country has a relatively low tax burden compared to other developed nations (Wiksell, 2020). Despite its strengths, the UK's capitalist economy faces challenges such as rising income inequality and regional disparities. The government has implemented policies such as the National Living Wage and regional development funds to address these issues, but they remain significant challenges for the country's economy. UK's capitalist economy is a dynamic and influential force on the global stage, driven by a strong services sector, a vibrant entrepreneurial culture, and a business-friendly regulatory environment.
Conclusion
It can be signified that the UK is a capitalist economy and not a socialist one. Yet, this lacks some of the factors that can be used for having an effective management of the capitalist economy free from any dispute in modern times. This essay concludes that a capitalist economy mainly possesses capital assets, which can be mines, railroads, construction sectors, and even some factories. However, these can be privately owned and controlled but the labor is purchased there for monetary wages. So, these clearly define each of the aspects of the UK's economy to be a capitalist one. However, some factors like the GDP ratio and the money-oriented economy had been also discussed, which allows having a clear idea about the different challenges that are faced by the UK capitalist economy.
References
Bili?, P., Prug, T. and Žitko, M., 2021. The Political Economy of Digital Monopolies: Contradictions and Alternatives to Data Commodification. Bristol University Press. https://doi.org/10.1057/s41301-020-00263-z
Derlien, H.U., 2020. Genesis and structure of evaluation efforts in comparative perspective. In Program evaluation and the management of government (pp. 147-175). Routledge.
Goodwin, R.M. and Punzo, L.F., 2019. The dynamics of a capitalist economy: a multi-sectoral approach. Routledge.
Heitmann, L., 2019. A Society After Money? Historical Position, Characteristics and Perspectives of Current Approaches to Post-monetary Economic Activity1. Society After Money: A Dialogue, p.11.
Hodgson, G.M., 2021. Financial institutions and the British Industrial Revolution: did financial underdevelopment hold back growth?. Journal of Institutional Economics, 17(3), pp.429-448.
Perrotta, C. and Perrotta, C., 2020. Broken Promises. Is Capitalism Still Progressive? A Historical Approach, pp.95-111.
Stilwell, F., 2019. From economics to political economy: Contradictions, challenge, and change. American Journal of Economics and Sociology, 78(1), pp.35-62.https://doi.org/10.1111/ajes.12259
Symanska, A., 2019. Free market economy and capitalism. International Journal of Tax Economics and Management, 3(1).
Wiksell, K., 2020. Worker cooperatives for social change: knowledge-making through constructive resistance within the capitalist market economy. Journal of Political Power, 13(2), pp.201-216. https://doi.org/10.1080/2158379X.2020.1764803
Zanoni, P., 2019. Labor market inclusion through predatory capitalism? The “sharing economy,” diversity, and the crisis of social reproduction in the Belgian coordinated market economy. In Work and labor in the digital age (Vol. 33, pp. 145-164). Emerald Publishing Limited.
