The word, capitalism, is used nowadays to describe a popular form of government. For example, the United States, Great Britain, Canada, France, as well as dozens of other countries are considered to be capitalistic. Of course, capital is used in any country, regardless of the form of their government. Under capitalism, the money that is used for tools, machines and other means of production belong to private citizens. It is a proven fact that, in a capitalistic system of government, people work harder and produce more if they have something to gain from it. For instance, the United States and other capitalistic countries are generally more prosperous than those under the socialist system and enjoy the highest living standards in the world.
Capitalism is derived from the word, capital, working with stocks or funds of wealth from which its owner derives income and is applied exclusively to wealth, part of which is re- channeled into business, in order to generate more wealth. Capital does not, however, include services derived from wealth. But can capitalism sustain a strong base without the criteria of certain principles, borrowed from socialism, that accounts for the intrusion of the needs of those that help strengthen its structure by way of contributing its share of support, in order to perpetuate its existence? Capitalism, insofar as the theory and practice of the science of economics is concerned, cannot indefinitely survive without a fair distribution of wealth. It has to be tempered with honesty and empathy toward those in the lowest strata of society.
The need to rectify mistakes in the system of capitalism is important and should not be procrastinated to the detriment of those that are denied certain necessities and rights. While capitalism should be allowed its freedom, it must also be regulated in certain respects. Absence of discreet regulation may inevitably result in abuses, as evidenced by the present debacle, by way of bankruptcies on the part of institutions that are given a free hand to manipulate certain aspects of the economy, to the extent that diversity of interests may suffer. There are rules that must be observed by capitalists who may be tempted to promote their own self-interest.
There is no way that the system of capitalism can work without enforcing limitations on finances that are held in trust by institutions. Let us not forget that, like it or not, unintended socialism does exist within capitalism itself. Capitalism may be likened to a crown that sits squarely on the delicate head of society in general, but the crown may not fit indefinitely if the head is weakened and pressured to the extent that it may not continue to endure the weight of the crown that it supports.