Capitalism Facts

Capitalism Facts
Capitalism is a system of economics in which people and not government own and run private business. It is also referred to as 'free market'. Capitalism has existed for only a few hundred years, making it one of the newest social systems in the world. In capitalism the small minority of people who own and run businesses are referred to as the capitalist class. The working class are those people that work for the capitalist class. The working class make up the majority of people in a capitalist society. In capitalism the purpose of business is to make a profit.
Interesting Capitalism Facts:
Many people today are against capitalism. This system benefits the small minority of people considered capitalist class and the working class are often left to struggle to make ends meet.
In the United States only 25% of the population is in favor of capitalism.
Capitalism allows for choices that sometimes do not exist in other economic systems. People can choose to make changes in what is available to them by demanding certain products.
Capitalism is driven by the law of supply and demand.
In a capitalist society people have more freedom to choose their career paths.
Many people believe that the basis of capitalism is greed. It is greed that drives the economy and inspires people to innovate and earn more money.
Although capitalism is meant to allow people to choose their path in life, social class and poverty often undermine people and make it difficult to achieve.
In most capitalist societies people are given the right to vote and in most situations are able to enjoy freedom of expression (although this is debatable).
The 'free market' economy of capitalism was introduced in 1776 by Adam Smith, a Scottish economist who wrote a book called The Wealth of Nations. He described an economy in which the government would leave the economy to the people.
In a capitalist economy businesses must compete for business which can mean more competitive pricing.
In a capitalist economy businesses and people are rewarded for advances in technology and this inspires more rapid advancement.
It is believed that capitalism results in a higher standard of living because it grows the economy.
In a capitalist society wealth is distributed very unevenly. A small portion of the population tends to have the majority of the wealth in the country.
Because the government generally does not get too involved in business issues in a capitalist economy this can result in monopolies that control the pricing and supply.
In a capitalist economy there is risk of poor labor conditions and lower wages. This results in members of the working class struggling to survive in many situations.
Most capitalist economies today do have some government intervention, which means businesses have to follow regulations. However this does not guarantee that the working class is being properly compensated and poverty exists in most capitalist economies.
Countries that have capitalist economies today are not 100% capitalist. This is because they all have some form of government regulation to guide business.


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