The Four Types of Capitalism

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Capitalism is a form of economic model that stresses on private ownership when it comes to production, trade, and industry. The goal of all capitalists is to use various inputs in order to obtain profit. The main characteristics of capitalism are capital accumulation, competitive markets and wage labor. Ever since the fall of the communist Soviet Union the majority of the nations of the world have adapted capitalism as its main economic model. However there are many forms of capitalism that are being used throughout the world. There are four types of capitalism: Free-Market Capitalism, Social Market Capitalism, State Capitalism, and Corporate Capitalism. The Free-Market Capitalism refers to an economic model where prices of goods and services are determined by market forces, not by government intervention. Free-Market Capitalism adheres to the Laissez-faire principle where the government does not interfere with the national economy except for the protection of property rights. Social-Market Capitalism is in theory a free market based economy with the exception of limited governmental intervention. The government in a limited capacity interferes with price formation. The government’s main role is to provide entitlement services such as universal health care and universal education to all its citizens. State Capitalism main principle is the control and ownership of the means of production. Management and organization of these industries is structured on a capitalistic manner meaning the main goal of a business entity within state capitalism is profit maximization. Usually countries that have in the present or in the past that have adopted socialism use state capitalism as its main economic model. Corporate Capitalism is a capitalis... ... middle of paper ... ...stablished culture in this country overall has seen more inequality than any other group in this nation. Originally they were slaves and after the Civil War the federal government failed to assist the free men and women to assimilate and participate in the national economy. In the southern United States segregation was another restriction which caused blacks to be more impoverished. In the current times the access to higher education and loans to start and sustain businesses own by blacks are the biggest inequality that hampers their efforts towards the contribution to the economy. In conclusion capitalism no matter in what form it may be in has its winners and losers. Capitalism has been deemed progressive and highly successful in most countries. The key for a democratic country is the type of capitalistic principle the nation implements towards economic success.
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