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.
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
United States
The economy of the United States is 82% free. The average tariff rate is low, although there are several non-tariff barriers. Financial markets are open to foreign competition and are the world's most dynamic and modern. Corruption is low and the labor market is highly flexible.
United Kingdom
The United Kingdom's economy is 81% free. The average tariff rate is low, although the government does implent distortionary European Union agricultural tariffs. Support for private enterprise is a world model, and the financial sector is modern.
Hong Kong
Hong Kong's economy is 89.3%free. Income and corporate tax rates are extremely low. Business regulation is simple, and the labor market is highly flexible. Inflation is low, although the government distorts the prices of several staples. Investment in Hong Kong is wide open.
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