Why must Capitalism?

Capitalism is an economic system based on private ownership of the means of production and their operation for profit. Characteristics central to capitalism include private property, capital accumulation, wage labor, voluntary exchange, a price system, and competitive markets. In a capitalist market economy, decision-making and investment are determined by every owner of wealth, property or production ability in financial and capital markets, whereas prices and the distribution of goods and services are mainly determined by competition in goods and services markets.

Critics of capitalism argue that it establishes power in the hands of a minority capitalist class that exists through the exploitation of the majority working class and their labor; prioritizes profit over social good, natural resources and the environment; and is an engine of inequality, corruption and economic instabilities. Supporters argue that it provides better products and innovation through competition, creates strong economic growth, and yields productivity and prosperity that greatly benefits society as well as being the most efficient system known for allocation of resources.

Historically, capitalism has an ability to promote economic growth as measured by gross domestic product (GDP), capacity utilization or standard of living. This argument was central, for example, to Adam Smith's advocacy of letting a free market control production and price and allocate resources. Many theorists have noted that this increase in global GDP over time coincides with the emergence of the modern world capitalist system.

Capitalism is defined as an economic system in which a country’s trade, industry, and profits are controlled by private companies, instead of by the people whose time and labor powers those companies. The United States and many other nations around the world are capitalist countries, but capitalism is not the only economic system available; throughout history, other countries have embraced other systems, like socialism or communism.

The kind of impact that capitalism has on your life depends on whether you’re a worker or a boss. For someone who owns a company and employs other workers, capitalism may make sense: The more profits your company brings in, the more resources you have to share with your workers, which theoretically improves everyone’s standard of living. It’s all based on the principle of supply and demand, and in capitalism, consumption is king. The problem is that many capitalist bosses aren’t great at sharing the wealth, which is why one of the major critiques of capitalism is that it is a huge driver of inequality, both social and economic.

Capitalism takes the position that greed drives profits and profits drive innovation and product development, which means there are more choices available for those who can afford them. Its opponents say that capitalism is, by nature, exploitative, and leads to a brutally divided society that tramples the working classes in favor of fattening the rich’s wallets. For an example in recent history, the Occupy Wall Street movement began as an anti-capitalist protest against “the 1%” — the richest of the rich of the capitalist class — and asked why they are allowed to grow fat and happy while 20% of all American children live in poverty.

so,Economic freedom leads to political freedom and having a state-owned means of production can lead to federal overreach and authoritarianism. They view it as the only sensible way to organize a society, insisting that alternatives like socialism, communism, or anarchism are doomed to fail.

When asked to consider capitalism’s negative impact on the environment and our shrinking natural resources, many say that those resources will only become more valuable and able to generate more capital as they continue to diminish. They also believe that the competition between companies benefits consumers by making products more affordable, and that capitalism’s dog-eat-dog atmosphere encourages people to work harder to achieve their dreams. They are likely to dismiss anti-capitalists’ concerns about inequality and oppression by saying that rich people are rich because they are more productive than their poorer counterparts.

Capitalism and socialism are generally seen as polar opposites. There are many forms of socialism, but at its root, socialism is an economic system in which a whole community — not just bosses or private companies — control the means of production equally. It assumes that people are naturally cooperative, instead of competitive. The goal of socialism is an egalitarian society run by democratically; unlike under capitalism, industry and production is run by the state, and the acquisition of private property is seen as counterproductive. Capitalist critics of socialism believe that the system slows economic growth, rewards worker laziness, and can stifle individual rights and free expression.

Because of that, I think, capitalism system is a good choice for us. with this system, we can make our own best decisions.

by Adellia Wiranta XIIA4/01