Capitalism clearly goes beyond economics. It's impossible to talk about capitalism without talking about political and social viewpoints. Capitalism is rooted in views about individual rights, liberty and human nature. In theoretical capitalism, the world revolves around the individual, the individual is inherently good, and individual self-interest benefits society as a whole.
But what happens in the actual practice of capitalism is sometimes quite a different story. With the establishment of an owner class and a working class, the distribution of wealth becomes extremely uneven. When the laborer is dependent on the capitalist for his livelihood then distrust, anger and unrest may develop. These basic truths have led to the end of pure capitalism throughout the world. What we now call capitalism is in fact a mixed economy. The exclusion of government from economics just didn't work.
I want to emphasize that there is no social welfare in capitalism. Even though America has a mixed economy, individuals can still fund and create their own business enterprises if the resources are available. People can still create an idea which in turn can create a company or an industry for that matter. If a business becomes successful, then the opportunity to make money becomes apparent. The problem with capitalism is that greed can become an issue at some point. The business owners or industrialists main goal is to amass profits. All the decision making decisions are based on profits! Workers, and wages and anything that has to do with worker welfare become less important. In essences, you will have an elite class of people in society. However, the wage workers or laborers will form the majority. I know that this cliché “the rich get richer and the poor get poorer” has been heard before. In modern times, this cliché has become more and more apparent as the years progress.
By now I know that the readers of this book are wondering what all of this has to do with education. Why are owners and laborers important to the issue of educating our children? I felt it important to establish a foundation of capitalism. I just want everyone to understand that people in society are most likely going to be members of the working or laboring class. Most people don’t own large resources of capital. The majority of Americans have worked for most of their lives until they are of retirement age. During people’s productive years, they have probably established some type of long term savings account. Hopefully it is enough money or capital to live on once retirement has occurred. Most people try and use their resources wisely. I want to emphasize that in order for these conditions to occur, an individual needed to acquire a job that paid a decent salary. Most of these jobs required specific skills sets; therefore, additional training after high school is necessary. Most of the additional training is acquired from a college, university or vocational school.