Pros and Cons of Capitalism

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Capitalism is a general term for an economic system where the means of the manufacture, sale and distribution of goods and services is privately owned and operates with minimal control and oversight from government agencies. Let’s see what benefits capitalism brings. First of all, the basic concept of capitalism is an open system of free competition. It allows multiple suppliers to compete for their share of the market. Anyone can start a business. Under a capitalistic system, a wider range of the population is able start successful businesses. The entrepreneur flourishes best in this environment. It also provide an open competition in the market. It provides individuals with far better opportunities of raising their income and thus achieving economic growth. Market forces can, and in many cases do direct the evolution of the markets and the products offered. Companies tend to succeed when they excel at providing what the market or customer wants to buy. This self regulation makes it possible for rapid changes in the goods and services available to consumers. Capitalism results in a decentralized economic system. Decentralized system is more stable and dynamic. A capitalistic economy is less centralized and less subject to the bad decisions of individuals or small, governing groups. If a market strategy doesn’t work, it may mean bad times for the businesses where it was employed, but there are always more companies waiting to pick up the slack. In a decentralized economy, individuals are open to more number of options in business. They are exposed to competition and have to face different challenges and find solutions to them to stay in competition. It is in a capitalist economy that hard work is rewarded. Entrepreneurs who pitch well and are able to better their business are the undoubted winners. Capitalism gives rise to an economy where the consumers regulate the market. Many consider this as one of the greatest strengths of a capitalist economy. A...
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