Introduction The word ‘Capitalism’ seems to bring in mind all sorts of thoughts as to whether it is the best way forward for the ailing American economy or not. Those who argue for and against it do so with tremendous passion. For pro-capitalism, it is the best way forward for liberating the American economy. The US economic system has been under scrutiny and a lot has been said as to whether economic liberty is being supported or compromised via recent economic policies and legislative actions. Capitalism is an economic system where private persons own the means of production and are profit-oriented. The market forces of demand and supply determine the prices of goods and services without the interference of the government (Stinchcombe 415). Main body For a capitalist system to succeed there should be a government which makes comes up with rules and regulations that define the economic environment. The forces of demand and supply set the prices in this economic system. There is no barrier to entry or exit and hence due to competition that is created, the big firms dominate the market due to the enjoyment of economies of scale. The small and not-well performing firms exit in the long run. Thus there should be economic incentives for high production in the economy where each producer and innovator is rewarded according to the amount of work that he/she has done (Thomas 2004). The capitalist argues that the government must protect its citizens who are the production units of the economy to create more wealth and help in the economic prosperity of the country. This leads to the creation of a stable economy where innovation is encouraged to keep up with the ever-increasing demands due to changes in technology and population. People realize the need to work hard and get rid of parasites that eat on others’ sweat. This feeling of working hard is motivated by the available incentives. Capitalism also adapts easily to these changes since only a few adjustments need to be done (Stinchcombe 415). In today’s world democracy is a prerequisite for economic success in any country. Though in America they have a capitalist system it is not pure capitalism since there is a form of government interference. This is where the government has delegated its production powers to non-state actors through some form of regulation. These regulations are through the tax, environmental regulations, consumer safety, and regulations on trade. Taxation is an example where the US government tries to control the process of production. It capitalizes on this such that the firms are regulated on how much to produce. Another form of government intervention is through consumer safety and environmental regulations. The pro-capitalists also might argue that most of the upcoming nations are a result of the collapse of communists like China and Russia. The system of democratic capitalism in the US has resulted in more social, physical, and economic good than any other known system. This is because the hard work of an individual is rewarded and it encourages innovation and invention (Thomas 2004). The regimes that are coming up in the US are in the process of continuing the system where much of the debates are on the current economic crises. The