Capitalism

2 Pages 573 Words

A capitalist economy is a supply and demand side economy. Adam Smith was the founder of this idea in his book, “The Wealth of Nations,” written in 1776. Capitalism is an economic system based on the principal of no government interference or ownership of the means of production and property. The capitalist economy is the best known to date because it has a tendency for competition to keep the prices of products with in the lines of the needs of the consumers. The idea of capitalism changed the way of the government and gave birth to a new industrial error in the United States. Capitalism is an ideal way of running a society in that the government does not have a large role in the economy, people who act in self interest could bring greater good for the society and trade is based on supply and demand. http://www.hrusa.org/hrmaterials/sustecon/others/capitalist.htm
Government in a social economy is limited. Industries are controlled by individual owners. It is a Lassie Faire or free enterprise system. Corporations are large companies that extend ownership out to the members of its community. In the elimination of the government intervention, competition is created between businesses. http://www.slp.org. Competition produces better products cheaper products and new products. Monopolies are an unwanted burden to a capitalist economy because competition decreases. http://www.dsausa.org
Consumers are the ordinary everyday working class citizens. Every consumer has to earn money to achieve buying things that they need. To create jobs resources are needed to be produced. Resources are produced and adjusted to fit the demands of the people. People who have needs and desires work to get what they need. Efficiency in each individual contributes to a better flow in the way things operate. The assembly line is an example of how efficiency in each individual contributes to the overall production. Karl Marx revolutionized th...