How does Capitalism in the US of America work?

Answer 1

Capitalism in the United States is the process by which goods and services are exchanged, It works because of the US government has empowered the Federal Reserve Bank to issue currency based on the "full faith and credit" of the government. This means that while there is no gold or silver to back the dollar bills issued, the US guarantees that it will honor the notes (bills). This enables ordinary people to use the currency to exchange them for things they need or want such as groceries, auto repairs, movie tickets and everything else that can be purchased in life. Capital as in capitalism is the means of exchange of one thing for another. Capitalists believe that one can and should work for money and exchange it for something else. Sometimes capitalists are portrayed as evil or sometimes wrong for wanting money. Like everything, it is the excessive desire for money or anything else that is the bad part.