Human societies are forever evolving. For instance, developing from preindustrial societies such as hunters and gatherers into modern industrial societies based on capitalism. A capitalist economy is defined as an economic system based on private ownership of capital. I believe that capitalism as a way of thinking that is fundamentally individualistic; that the individual is the center of capitalist endeavors and should be free to pursue their own interests. Thus individuals that are pursuing their own interests will guarantee the interests of society as a whole, which is the complete opposite to the hunter and gathering societies.
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.
Capitalism Capitalism is the economic system in which production, distribution and, exchange of goods takes place for profit by people's own interest. In capitalism, private owners control over industry or market with none or very low interference by government. Capitalism provides right to express their freedom by making decision about their goods and labor. It gives right or freedom to choose what to produce, how to produce and, price of that product. Producer will decide that for how much he or she wants to sell his or her product.
The ideal system of capitalism answers all questions pertaining to the economy and politics. Factors of production are fundamental supplies that are utilized to create goods and services. Land, labor, and capital are factors of production. An entrepreneur gathers all these factors and combines them to create goods and/or services. A free enterprise system, which could also be referred to as capitalism, is an economic structure that pertains to private or corporate ownership of capital goods and investments that are set by private choice rather than the government.
Throughout history, many different types of economic models and theories have been developed. These different philosophies of business often were an important and integral part of a government’s basic structure. For example communist countries like China and the Soviet Union practiced a type of socialism. While, democratic nations like the United States and Canada practice forms of capitalism. Also within these economic models exists different theories as well such as Keynsian economics and laissez faire economics.
People are free to decide how they will earn and spend their income. Companies may choose which goods and services to produce and how much to charge for them. They also compete with one another to sell products. Nations whose economies are based on capitalism include the United States, Germany, Canada, and Japan. Although a private individual or group of individuals may control their income and a large section of an economy, the government can control some aspects of the economy in every nation.
The Government tax people but provide, health care, infrastructure, education and welfare as well as owning certain industries to keep some form of economic planning available to them. However recently the Government has sold off a lot of nationalised industries and this has allowed for more competition and moves the economy in to a more Capitalist state. Conclusion In a Capitalist society there is great suffering because of the great inequality but in a Socialist society it seems that, even though the idea of everyone living equally in harmony is appealing, the fact of the matter is that the only equality that people will share is the equality of no choice and oppression. True Socialism can never work in any society because it is human nature to want mare than you have and to strive to achieve this. Countries that say they are socialist seem to me to be more of a dictatorship.
Capitalism and Communism has its own ideas on how a government should run, whether it’s through advancement of people According to Minsky capitalism is not just the market economy, but it is also a financial economy (1). Minsky states that there are two sets of prices, first is the prices of current output, and second consist of the prices of assets (1). Capitalism is an economic system characterized by freedom of the market (essay.com 1). Capitalism is different from many other economic ideas by the fact that capitalism gives individuals freedoms with minimal government interference. In a market capitalist system, capital and land are private property (Haramis 1).
In his eyes, capitalism split people into two main classes, the bourgeoisie and proletariats. The bourgeoisie was the wealthy class that owned the factories and businesses. The proletariats were the wageworkers that could only sell their labor (Weber 14). Capitalism made the gap between to two classes even larger by making the rich richer and the poor poorer. In 1867, Das Kapital was published arguing about the unfair society capitalism creates.
Under this system, it allowed private economic freedom used capital and allowed the government to interfere in economic activities to achieve social aims. The price mechanism and regulated price operate will happen at the same time. The price mechanism is generally followed in consumer goods industries. When big shortage happened, prices will be controlled and public distribution system will be effective. There has both profit motive such as capitalism and social welfare.