By definition, Capitalism is an economic system controlled chiefly by individuals and private companies instead of by the government. In this system, individuals and companies own and direct most of the resources used to produce goods and services, including land and other natural resources labor, and "capital". "Capital" includes factories and equipment and sometimes the money used in businesses (Friedman, 5). Capitalism stresses private economic decisions. People are free to decide how they will earn and spend their income. Companies may choose which goods and services to produce and how much to charge for them. They also compete with one another to sell products. Nations whose economies are based on capitalism include the United States, Germany, Canada, and Japan.
Although a private individual or group of individuals may control their income and a large section of an economy, the government can control some aspects of the economy in every nation. Capitalism is some times called Free enterprise, despite its limits established by the government. Many organizations and businesses flourish from the existence of capitalism. Non-profit organizations prosper from capitalism such as: The Roman Catholic Church. As one of the largest and most common religions in the world, the Roman Catholic faith is sustained through capitalism, for it is a capitalist organization. It can be considered a Capitalist organization in the fact that income is freely given in return for nothing. One's religion can definitely influence their economic decisions, lifestyle and social status. The Roman Catholic Church believes that capitalism can become a type of injustice. For example, some people in capitalist nations can afford many luxuries. But at the same time, others lack adequate food, housing, and other needs. This unequal distribution of wealth results largely from capitalism's emphasis on individuality. The Catholic Church cites examples of inequality as incorrect. However, the...
Please join StudyMode to read the full document