Capitalism: Role of government.

Abstract

The article ''Capitalism: Role of government'' by M. Azizur Rahman explores the contentious debate surrounding the government's role in capitalist economies, contrasting theoretical ideals of laissez-faire capitalism with the practical necessity of state intervention. It examines how governments influence economic outcomes through policies like fiscal regulation, monetary controls, and public services, even in systems predicated on private ownership and voluntary trade. The piece highlights perspectives from classical liberals, Keynesians, and critics like Karl Marx, who argue that unchecked capitalism risks exploiting labor and exacerbating inequality. It also addresses modern hybrid systems (e.g., European social democracies) where governments balance market freedom with social welfare, underscoring the tension between economic efficiency and public accountability.