Capitalism

(market economy)

Capitalism is usually known as the social system today. Some people think that capitalism has existed in most of human history. Capitalism is a new social system or just a new word for things. There two parts of the capitalism class division. The first is the working class and they are paid to produce goods and services. The second is the capitalists and they live off the profits they collect from managing the working class.

Market Economy

Market economy is where there is free competition between the businesses.You can decide whether you have success or failure. Although there is no compleatly pure market economy today, the US is probably the best example of this. The businesses that may be an exception to this would be the mail.

Pros and Cons

Pros

  • compitition keeps prices low
  • keeps with demand
  • new things often made

Cons

  • old things still used thrown away
  • monopoly may happen
  • people can succeed or fail
  • big gap between social class