Capitalism: Role of government

Abstract

Prof. Dr. M. Azizur Rahman explores the dynamics of government involvement in capitalist and communist societies, noting that capitalism is characterized by "small government" and well-protected private property rights. Under capitalism, workers have the freedom to choose their workplace and negotiate wages, while the government’s role is typically limited to providing essential infrastructure, maintaining law and order, and enforcing competition laws to prevent monopolies. The author highlights that while the market ideally operates without intervention, many capitalist societies still implement minimum wage and safety standards to protect labor. Ultimately, the government's responsibility in a capitalist framework is to control inflation, decrease unemployment, and foster economic growth through appropriate fiscal and monetary policies while collecting tax revenue for public utilities.