My Argument about State Capitalism - Essay Example

The government has to develop constituents within its establishments that have been in charge of state-owned companies. These branches eventually outlive their usefulness thus a disadvantage to the government because then it would have to do away with them. This means many people will lose their jobs and thus blame the government for its shortsightedness (The Economist Debate). The limitation of state capitalism is that it can only be produced in certain industries as chosen by the government while the rest remain out.

However, this depends on the degree of management as well as the level of interference by the state in the operational matters of the industries involved. All in all, the success or failure of state capitalism depends on the state, and countries should know their status before indulging themselves, or else the economy would be disastrous. In this case, the private sector would suffer a lot as its fundamental liberties would undergo regression.