Tuesday, October 28, 2008

How Capitalism Works and the Good About It

The definition of capitalism is "an economic and social system in which individuals can maximize profits because they own the means of production." In lesser terms capitalism is a market that doesn't have government influence. The basics of capitalism is that there is a "Invisible Hand" that really controls everything that happens in capitalism. The invisible hand is the theory that conservatives use to just let things happen in the world of capitalism, no one tells anyone how to run there business or what price to sell things, the invisible hand kind of "controls" all of that and it makes things happen. When I say make things happen I really mean that it forces competition between other business. Thats a good thing for the consumer because it makes it so that the companies are making better products that are cheaper to buy in order to compete with the competition. Another good aspect of capitalism is that the government has no involvement so no one tells us how much to sell or how much to buy for.








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