Essay On Capitalism And Capitalism

676 Words3 Pages
All through history, there have been numerous economic systems developed in order to have a better way of living or society. Two of the most scrutinized economic systems that have tried to change an economy for the better are capitalism and communism. Capitalism and communism have been analyzed on many occasions, such as what to produce, how to produce, and who gets what. Capitalism is an economic system defined as a freedom of the market. Capitalism gives the people freedom with minimum government Capitalism is focused on personal ownership and individual growth. Capital and land in a market capitalist system, are private property. As capitalism wants the government to not play a big role in the system, but instead wants it to be up to private ownership to produce and distribute the goods. This is the theory of a free market, based on supply and demand to take care of the consumer welfare. Capitalism gives people the freedom to do as they wish, and allows them the opportunities to work to gain great wealth, or to just survive in the society. A free-market economy is one within which all markets are unregulated by any parties other than market participants. In its purest form, the government plays a neutral role in its administration and legislation of economic activity, neither limiting it nor actively promoting it. Free markets differs from situations encountered in controlled markets or a monopoly, which can introduce price deviations without any changes to supply and demand. Advocates of a free market traditionally consider the term to imply that the means of production is under private, and not state control or co-operative ownership. This is the contemporary use of the term "free market" by economists and in popular cult... ... middle of paper ... ... production apart from labor are owned by the state. In conclusion, the world has scarce resources. The economic systems of countries are designed to allocate those resources, through a production system, to provide output for their citizens. The fundamental questions that these systems answer are: what to produce, how and for whom? Market economies leave the answers to these questions to the determination of the forces of supply and demand while command economies use a central planning agency to direct the activities of the economy. Both have their own strengths and weaknesses. But in the real world, all economies are actually mixed economies, incorporating some facts of both market and command economies. The relative importance of the particular economic system in the country is the determinant of the type of economic system that it is generally considered to be.

More about Essay On Capitalism And Capitalism

Open Document