Creative Captialism

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Creative Capitalism|
Bus 201|


`It is said that Capitalism has improved the lives of billions of people. (Gates, 2008) However, there are still billions more who have not been so fortunate. Free market capitalism could be the answer that helps both the fortunate and the unfortunate. A free market is a market that is unregulated by any form of government, but instead by supply and demand. The idea behind the free market is that goods are allowed to be exchanged freely without any intervention by any outside forces. (Kivumbi, 2011) Capitalism and Free Market Capitalism both need capital to survive, but that is where their similarities end. Capitalism is a about the production of wealth, whereas, free market is more about the various methods in which wealth can be exchanged. (Kivumbi, 2011)It is believed that the Free Market Capitalist system is what could save those who capitalism has been unable to help. With the rich persuading the government to make laws that will keep them rich the poor will never be able to rise out of poverty. Free market capitalism would prevent the laws from ever being put into place.

Creative capitalism is a way for business and capitalism to work together to put end to poverty in third world countries. (Media, 2009) It a way to make companies want to give back to people in need by providing them an incentive. Creative capitalism will not be the answer for the short term issues but to the long term. (Gates, 2008) C.K. Prahalad wrote a book that explains the benefits companies could receive. The book was titled The Fortune under the Pyramid; it explains that even the poorest countries have purchasing power. If companies could find a way to properly market to these poverty ridden countries they could not only make a profit but also help these countries prosper. For instance in Kenya, a company called Vodafone learned how to make a difference and a profit. They purchased a...