Wednesday, January 25, 2012

Capitalism Homework 2

1) By definition Capitalism is “all or most of the factors of production and distribution- such as land, factories, railroads, and stores- are owned by individuals”.  The goal of capitalism is to make a profit. This being said it has its advantages and disadvantages. Over the years capitalism has become the foundation of America.
Living in a capitalist society gives business owners a lot of advantages given through rights , these include the right to own private property, the right to own a business and keep the profits, the right to freedom of competition and the right to freedom of choice. The right to own private property is probably the most important advantage of all. With this owners can buy, sell, and rent land, inventions, buildings, machines, and other forms of property. Also they can pass these things down from generation to generation. The right to own the business and keep the profits is also good because the business does not have to give money away, excluding taxes. These rights benefit the capitalists because they are more likely to take risks. They feel better protected buy these laws so they do things that they wouldn’t normal otherwise. Also the consumers and the producers have the freedom to do what they want. But the producer gives them the best quality and best price.
Now on the other hand the disadvantages of capitalism are not that good. There is a lot of inequality in capitalist society, the rich tend to get richer and the poor tend to get poorer. This makes life very hard for those on the bottom of the food chain. Things like this are what lead to unemployment and makes a lot of families suffer. Effects of this are shown in modern day America. The unemployment rate is still very high ever since the recession. To improve this you could do a few things. For starters you could spread the power out a bit more that would even things out. Also more small businesses could be created to help develop more jobs.

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