Capitalism Economy

Gary Martínez

What is Capitalist Economy?

Capitalism is an economy based on free markets where resources are privately owned. Companies compete with other companies for business. They decide what products they want to produce, how much they should cost and what're to sell them. They do this to make profit for their owners. It usually only involes some state intervention to protect private property and regulate certain aspects of the economy.
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Benefits of Capitalism

1.) No Government Control. Basically, when governments attempt to control the economy. We end up with problems such as corruption, lack of incentives, and bad information.

2.) Efficient Allocation of Resources. In theory, capitalism ensures resources are distributed according to consumer preferences. Firms are not rewarded for producing goods people don't want.

3.) Efficient Production. Firms have incentives to be productively efficient - cutting costs to improve conpetitiveness and productivity.

4.) Dynamic Efficiency. This is efficiency over tome. Firms need top respond to changes in consumer preferences and respond to new consumer trends.

5.) Financial Incentives. Evidence suggests that people work hardest when there is a.personal financial incentive.

Free Market Economy Video Investopedia

Countries with a Capitalism Economy

Refutations

Some critics say that capitalism evokes economic disparity that diminishes the possibility for social mobility, thereby constricting people to not only certain classes, but also certain environments and opportunities. But in fact, it is those who are poor are so willingly because the "free enterprise" system of capitalism is constructed so that anyone, with hard work, can gain wealth.

Why it is the Best

Free enterprise has helped the poor by providing new medicines, new technologies, human rights, the rule of law, and unprecedented opportunities for personal and social flourishing.
Wealth and Justice

Capitalism is the Best Economic System Ever Devised