In sHort, people get freedom to run the market based on their ability and interest. In an ideal world, it supposed to benefit everyone, producers and consumers, because producer wilf produce and make profit from what people want and consumer will pay what they think the product is worth for. In Capitalism, private owner's make profit over labor. In-real world, labor get less money for their work on which owner make profit. Capitalism provides us freedom of individual, but it neglects the stability of the society.
A downside to capitalism is a monopoly can rise to power. Due to private firms gaining power in a market, they can use their power and charge higher prices. For example, if a company produces a product that is exclusive and very high in demand, then they can abuse the fact that they are the only supplier and change as much as they please for their own personal profit. Clearly, this is not moral; abusing power to screw over the majority of middle to lower class consumers because of an exploit in the capitalist system is great for the company, but is unfair to the rest of the society. “People tend to take for granted the desirability and moral legitimacy of the political and economic system within which they live” (Shaw).
I believe capitalism forces business men to make profitable amoral decisions may not benefit our society at all. However, maybe Smith is also correct on capitalism is the best way to serve the society before other solutions appear. And with many evidences from different countries, I have to agree with Griffin and Smith that capitalism is efficient. However, I would only describe capitalism as an insensitive, bloody, efficiently machine that does not have feel and moral. The core of capitalism is still profit driven, materialistic, and money.
A capitalist economy encourages people to aim for success, business owners treat and pay their employees very well in order to attract good workers for the promotion and more success of their businesses. Although, there are fo... ... middle of paper ... ...but under operation of the government. Socialism does not promote competition because everything is government owned, therefore there is no room for production of better products and services, and no room for innovation and increasing wealth. Socialism and capitalism have more differences than similarities, which each difference has it’s own benefit to the economy. While capitalism is more rich get richer poor get poorer, socialism distributes wealth evenly to those both those that work and do not work to acquire wealth.
The free economy system is based on incentives and without having something to work for there ... ... middle of paper ... ...free enterprise system is very important in today’s society. Because of the capitalistic economy people have incentives to work harder and longer and maybe entice people into starting businesses that would not have been there succeed. The law of supply and demand is a great idea for the free enterprise system because it helps producers and consumers come to an agreement on a products cost. The free enterprise system also helps companies keep striving to become efficient and to produce things cheaper so that the public can get products for cheaper. The capitalistic economy makes a way for companies to change with society in a way that businesses are happy because their sales are improved and consumers are happier because they get the products they want.
If everyone’s goal increases their own wealth then the country’s economy will prosper as supply and demand will always increase employment, maintain the strength of the work force, and advance goods and services. Unlike socialism, that leads deterioration of the work force, economy and production. A socialist believes the willingness to relinquish wealth and status, for the benefit of the many, will result in a strong economic system and society, which is false. This is because if one work gets no more wealth or status than the other, there is drive to improve his or hers services. If a socialist society demands social equality, there will be no room for improvement.
State that has freedom of choice and limited government intervention is usually termed as a democracy and because of its capitalistic goals, it is usually economically developed and successful. The US has ever since been an advocate of freedom of choice and capitalism. These have been their two main goals since the beginning of the Cold War, if not before that. Capitalism as opposed to communism, may increase the divide between the rich and the poor, as crtiticized by the Marxists, however, it does a really good job of developing the State economically via technological innovation and other means. As Adam Smith has stated in his theory of the invisible hand, everyone is selfish to satisfy themselves and thus, do exactly that.
Though pure capitalism is very theoretical and does not exist in reality, in a purely capitalist society the prosperity of the economy is fuelled by incentives. Adam Smith wrote, “By pursuing his own interest he frequently promotes that of society more effectually than when he really intends to promote it”. This is in fact true because by the voluntary ability to act in our own self-interest we are willing to give up what we have for what we wish to have. This then requires that producers produce... ... middle of paper ... ...e to the result that regulated capitalism is the most morally favourable system. In the above essay I have clearly shown how pure capitalism is efficient yet unfair on one end and how socialism is not fair as well as impracticable on the other end.
? Here, free enterprising helps the economy to flourish. People can organize their own businesses and receive their own profits if it succeeds, or debts if it fails. In this system, the harder a person works, the more money they receive, allowing them to ‘make ends meet.’ The downside to democracy is that people can get a high paying job through education, but may work just as hard at a lower paying job and receive less money. As Winston Churchill once said, "The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries."
Capitalism is an economic system in which the production and distribution are privately owned, the government involvement is minimal,and there is free enterprise. In Capitalism, the means of production are privately owned and operated for profit in a competitive market. Also the economic investment, ownership and profits are all owned by individuals. Under capitalism the state is separated from the economy, which means that the government has no role in business. In other words, everyone works for themselves.