Capitalism versus Separation Between State and Economics,

Capitalism is an economic system that promotes free trade, private means of production that are operated for profit and encourages private businesses while limiting the authority of the state. Capitalism does aim to let the market forces be the deciding force, instead of having interference from the governments. However, a strict separation between state and economics has not been attempted in any society including capitalist societies like USA. The government always plays a regulatory role which involves monitoring practices, power or oversight and authority to set standards that have to be met with by the industries. In practise, capitalism cannot function with a strict separation from the state.

The separation between church and state has been adhered to for decades. The state must be secular and favour one religion over the other, unless it’s a theocratic form of government. The church, which stands for religious institutions in their entirety, and state are two centres of power, and it was decided that one will not impinge on the other’s activities. A state need not concern itself with the religion of its citizens, however, the economic well-being of its citizens is an important responsibility of the state. Thus, the state has a vital interest in economics unlike religious activities. Thus, there can be no clear demarcation between state and economics like state and church.