Economic Theories Of Capitalism

Economic Theories Paper

Today our world needs help, but which economic theory is the best option? There are many economic systems/theories that have their pros and cons, but only three have been used. The systems are, capitalism socialism and communism. All these systems fall under the economic theories, which is a theory that states, that commercial activities based on the production and consumption of goods. (“Wordnetweb.princeton) However, the dominating system is capitalism, which Capitalism is, a social system that is based on individual rights, and it’s politically the system of freedom “laissez-faire.” (Rand) As for socialism, which is the opposite, the government controls, and owns most of the means and production this is the type of economic system it is. In spite, the capitalist system is a successful system because it helps the country run by motivation, competition, and striving toward a goal to benefit from. Nevertheless, if people depend on socialist society it lacks incentives to increase effort, and freedom of choice is limited. That is why many people and I, support capitalism because it’s an efficient system that will keep the people and there country profiting.

To begin with, capitalism is a system known for motivating and rewarding people for their hard work and new methods. Which means, the people who strive for goals in life are the benefiting ones. As “Capitalism is the only social system, which rewards virtue and punishes vice. This applies to both the business executive and the carpenter, the lawyer and the factory worker.”(Thompson) in Simple terms, hard working people well be rewarded, and if their slacking during their job, whether they are a fireman or a business man they will face consequences. T...

... middle of paper ...

...duals wont have a good start in life, because family is their for a reason to support their own. That is why capitalist system, become responsible because they have to take care of a whole family. To add on Monopolies do form in a capitalist society, but they can be taken care of. As for a socialist state is perpetual monopoly, which controls the people, by limiting their freedom.

To conclude this, capitalism is obviously the winner, by benefiting the world. As an Example, the right to a private ownership, rewards and motivation, and the increased competition, which helps the society to approach more cheap, and high quality products. To add, allowing inherited wealth and handling the creation of monopolies, which well help the other individuals grow, and with all the multiple benefits, that comes with capitalism, which makes it the most reliable economic system.