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How does capitalism meet broad social and economic goals such as freedom?
Whitegurl1516
The 6 goals and how they are met by capitalism (compared to socialism and communism) are: Freedom--freedom in the market place. The government does not control prices or who can sell or buy. There are no barriers to entry into the market set up by the government. Of the three major systems, capitalism is usually best in this category. Growth--capitalism has the highest incentives of economic systems, because how hard you work is directly tied to how much you make. Therefore people work hard and production growth is high. Of the three major systems, capitalism is usually best in this category. Equality--This is where Capitalism is weak. In pure capitalism no one is protecting the economic rights of the poor. Opportunities in the market place are only available to those who can afford them. Stability--Prices are decided by the the balance between supply and demand. Therefore, there is little price stability compared with other economic systems because prices quickly change with every fad and shortage of resources. Capitalism is weak in this area. Security--Unemployment is usually higher in capitalism because jobs are not provided by the government (as in communism) and the government doesn't provide public services and money to help people find a job (as in socialism). Efficiency--just as in growth, capitalism has the highest incentives of economic systems, so people work hard. Businesses want to increase production in order to increase profit and therefore focus on efficiency. Also, by having the consumers and producers free to decide what to supply and consume, production must constantly change to match demand. Capitalism allows producers to easily change production levels and prices, causing more efficiency. Of the three major systems, capitalism is usually best in this category. In conclusion Capitalism is best at freedom, efficiency, and growth but is worst in stability, security, and equality.
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