Why does capitalism work?

Answer 1

Capitalism is a concept of free enterprise where Capital is a resource for production of goods and capital .In the transition of occupation from the primary to the secondary and tertiary stage in economic development capital is the only resource that helps to build the economic and social structures in the capital outlay of investments and the well beings of the people.

The socialists concepts of welfare however has its limitations and more specially in Marxism where confrontation has witnessed a normative pause and total failure in this enlarging global economic social scene.

Answer 2

In short, capitalism creates competition which makes drives companies to make better products and services at the same time forcing price control to compete for business. Example: a 26 inch color tv in 1963 cost $379 without inflation, today you can buy a 26 inch flat screen HD tv for $165. The tv today cost less and is much better. Simply look at the advance in our society in the form of technology in the past 10 years. That is the effect of capitalism and competition.

Hope this helps.

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Answer 3

If you're super rich, capitalism is a great system. You don't really have to do too much and you can have a mansion, massive pools, etc. On top of all this, you have enormous economic power and hence, political power. Under capitalism, the rich are free. If you are not super rich and are say a child born in Somalia, capitalism is about as evil as it gets.

Answer 4

How well capitalism works is something that is certainly up for dispute, but as of yet, using materialistic measures (such as GDP, economic strength, lifespan), capitalism seems to work well. The reason is, generally speaking, because in a capitalist society, production matches consumption. This means that there are sufficient amounts of most products and minimal significant overages or underproduction in services. This results from the fact that any producer will increase or reduce production based on their own financial needs, as opposed to the ideological basis that may underline planned economies or mercantilist economies.

Answer 5

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