Capitalism ResponseThe Merriam Webster Dictionary defines capitalism as an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decisions, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market. Private individuals have the freedom to do their own technique of producing a product and sell it to the market whatever the deal price is. They are in control of everything and not being interfered by the government.Capitalism have pros and cons.
The pros would be the economic incentives to be encourage innovation, the freedom of the producer and the consumer to choose a product, and prices are determined by the supply and the demand. The cons would be inequality of the distribution of wealth, could gain monopoly power and exploit the consumers and also the constantly economic growth may affect our Earth resources. The idea of capitalism looks so ideal for many of us, people get to buy any products they desire without the government interfering about it. It is all about people’s demand and the supplies that these capitalists make for all.
The higher the demand is, and the lower the supply, the price tends to rise. Businesses or should I say the workers, make as much as they can to turn it to profits in order to earn more revenues. But since capitalism relies on a free market trade, the prices will likely to increase which gives the benefit only to those who can afford these items.In addition, capitalism opens up an opportunity for hiring more people to work in this business. It helps people to get to work and earn money.