Tyler LeBlanc HW #2

Discuss both the advantages and disadvantages of living in a capitalist society.   The, describe how such disadvantages could be minimized.

         Capitalism is an economic system in which all or most of the factors of production and distribution are privately owned and operated for profit. There are four different degrees of competition: (1) perfect competition, (2) monopolistic competition, (3) oligopoly, and (4) monopoly.

Advantages:

         Advantages of a capitalism society consist of the right to own private property, the right to own a business and keep all the businesses profits, the right to freedom of competition and the right to freedom of choice. Free markets may create the most wealth in this society. Freedom is the main idea of a capitalist society. Capital businesses are operated for profit for business people not the government. Owners decide how much product, what to charge and how much to pay workers. Supply and demand plays a huge role in a businesses pricing. Also they decide where their products are produced. Capital can help small businesses grow in the poorest countries in the world. One benefit of capitalism is that people are willing to take more risks than usual.

Disadvantages:

         Disadvantages of capitalism consist of practices of slavery and child labor, allowing greed to dictate how they act, criminal charges, and false production. Criminal charges brought against some big businesses in banking, oil, accounting, telecommunications, insurance, and pharmaceuticals indicate the scope of the potential problem. Some businesses have deceived public about their products while others are deceived by stock.

  Describe how such disadvantages could be minimized?

         The government laws and regulations may be necessary to protect businesses stakeholders and make sure people who cannot work get the basic care they need. Businesses should not be run by the government but instead help monitor so the business owner does not get out of control with his earnings or judgment. Greed can end up ruining a business. If a business is just run by the owner without government regulation, problems will begin.

Here are a list of Capitalism Country’s.