Essay on Capitalism

Submitted By staceysmith123
Words: 557
Pages: 3

Capitalism

Capitalism is an economic system base on three: wage,labour, private ownership or control of the means of production and production for exchange and profit. Capitalism is based on simple process, money is invested to generate more money. When money functions like this, it functions as capital. For instance, when a company uses its profits to hire more stuff or open new premises and so make more profit, the money here is functioning as capital. As capital increases that is called capital accumulation and its driving force of the economy. Capitalism can be seen as the better economic choice because capitalism countries as usually much more technologically advanced, and because individuals can make their own business decisions and choose their profession with out trouble or disapproval from the government. While both economies have potential for success, capitalism is the best way to run an economy because it allows individuals to make their own business decisions and to be self-motivated, it limits the power held by he government and unlike socialist countries,capitalis countries are more technologically advanced and better educated. In order to fully and successfully present the argument. there are several terms that must be defined. Capitalism is the economic system under which the ownership of goods and services are privately owned, and decisions concerning pricing,investment,and distribution are determined in a free-market system,primarly on the basis of competition between businesses. A free market economy is a system that operates independently of the government.Laissez-fair policies could include low taxes, little government intervention, free markets, and private ownership of the means of production. Capitalism is a better way to run an economy because capitalism think those who have the best and most creative ideas, judgments, opinions, plans and schemes have a right to be rewarded with profits and those that lack the motivation or resources will not be able to keep up with the competition. Those who want to succeed and put forth effort will do better than those who do not. Capitalism allows individuals to…