Capitalism refers to the people who invest their resources to make a profit by capitalist ideology essay revise service. Capitalism ideology refers to the economic system where a person tends to own different factors of production. Karl Marx was against capitalism to some extent and instead supported socialism and he considered the countries to be the executive of the capitalist.

The country had the executive power to determine the economic system. There are different economic systems in the world and the main ones, according to Karl Marx were capitalism and socialism. The countries determined the economic system in different ways since it controls the factors of production. Karl Max was looking keenly at the force that drives people as they indulge themselves in their economic activities. It was realized that the people are driven by the desire to own the factors of production but this does not define how people will own the economic materials. It could be individually which will promote capitalism or communally which tends ten to support socialism. The country can determine the economic system to be established by forming laws that will guide the people as they continue with productivity (Richard, 2013 p. 9). In the modern world economy, capitalism seems to be the dominating economic system followed by socialism. Additionally, the countries have the mandate to determine how the selected economic system is going to be conducted to bring maximum gain to the economy of that particular country.

Formation of business organizations. The government is the key determiner of which business organizations are going to be formed. The formation of limited liability businesses which Karl Max supported has promoted the establishment of capitalism. The limited liability has supported capitalism in that it encourages an individualized method of production. In this situation, it was realized that there were some founding families which owned a significant amount of shares, especially in countries such as Sweden. This phenomenon was brought to an end by the establishment of the position of managers who made it difficult to own shares for the individuals who wanted to own a large number of shares. Initially, those who owned a large number of shares were considered to be private investors’ hence promoting capitalism. The government can exercise its executive powers which will define the form of business organizations to be formed. Also, it can regulate the maximum and the minimum shares that an individual can own in a specific company.

Ownership of the factors of production. Karl Max realized that the government had every means which could have determine the fate of capitalism. Ownership of the factors of production was one means which would have been used by a certain country to affect capitalism either positively or negatively. To discourage capitalism the government would have empowered the individuals within society to produce different forms of the factors of reproduction. This would have reduced the chance of monopolizing the factors of production. Such actions would have promoted equality within the society and therefore, reduced the occurrence of capitalism. The government would have also promoted capitalism in the country by monopolizing the factors of production.

Control of Infinite Accumulation of Wealth. Karl Max realized that there was some individual who accumulated wealth during the period of the Industrial Revolution and this was the major factor that led to capitalism. Karl Max postulated that the government could have possibly used its executive power to ensure that the amount of wealth accumulated by an individual is regulated. This would have been a milestone that would have lowered the level of capitalism, especially in a case where only a few individuals own the factors of production. The country is an executive to capitalism since it has all the mechanisms to control capitalism in the country.

Role of the State in Twenty-First Century

The state plays a major economic role. The provision of a conducive environment for economic growth. Conflict within different countries has been a common thing that has major economic effects. Mostly conflict that occurs with different countries is as result of politics and the conduct of the politicians. An unhealthy political environment discourages investors due to speculations of possible conflict within a country. The states should ensure that the country is not exposed to a prolonged period of politics. The prolonged political period has had great effects on the economy of the country. All the other factors such as insecurity due to external attacks should be catered for.

Controlling the money circulating in the economy. Money is referred to as anything which can act as the legal tender for exchange. Money circulating in the economy needs to be controlled since it may impact the economy of the country in a major way. One of the economic effects is inflation which affects the ability of the citizens to purchase the commodities in the market. Inflation may cause the price of commodities to increase or lead to scarcity of goods in the market due to increased demand for certain goods. Inflation may lower the value of the currency of a particular country. This means that a person will be using a lot of money to buy a certain commodity which formally he used to buy with a small amount.

Economic Diplomacy. This has been the epitome of the economy of various countries in the world. The countries are using diplomacy to create an enabling environment where they can transact with each other freely to promote the economy. The diplomatic relation between different countries has promoted by-lateral and multilateral trade with an effort to maximize profit. The factors of production move freely within the country members to enhance the production process. To reduce competition between the countries involved, each member specializes in producing a specific commodity and leaves other countries on the rest of the commodities.

Reasons Why the Roles Have Changed

Technology is one of the factors which has led to a change in the roles of the states. Modern technology has affected every aspect of our lives in a major. For example, technology has led to changes in the method of production since today modern machines are being used. During the time of Adam Smith, the best states could have done was to provide the factories with enough slaves to provide labor. Today, the same state as it plays its role it cannot provide the slaves as the labor instead it has to provide modern machines and the electricity to run them. This is one way in which the role of the state has changed due to modern technology.

Modern Economy. Each country in the world is determined to outshine each other economically. Due to this reason, each state has adopted the role of providing a conducive environment for production and looking for the market of its commodity. The country has to provide security to its industries so that the process of manufacturing can be carried on effectively. When a country is properly secured most of the entrepreneurs have confidence in risking their capital in the investment. Proper investment leads to economic growth.

Conclusion

Having said that, Karl Max believed that the country had authority over the capitalists. For this reason, each country determined the form of economic state which was going to be established. The most dominant economic statuses were capitalism and socialism. Capitalism would have been brought about by the fact that people consider it to be the most effective way to develop the economy.