The Pros And Cons Of Capitalism In The United States

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Capitalism is a system of largely private ownership that is open to new ideas, new firms and new owners- to short, to new capital. Capitalism was used in which the capital was free to go in new directions without a green light from the state. Countries like: United States of America, Japan, South Korea, and Russia were some of the big countries that uses or used Capitalism, but there are many other countries that uses or used capitalism. Actually the United States are one of the countries that still use Capitalism today. In this paper I am going to discuss the pros and cons of Capitalism, provide information about the founders and their theories and came up. By the end of my paper I hope that you understand the meaning of Capitalism more clearly. …show more content…

One of them being that economic freedom helps political freedom, if governments own the means of production and set prices, it invariably leads to a powerful state and creates a large bureaucracy which may extend into other areas of life. Efficiency, firms in a capitalist based society face incentives to be efficient and produce goods which are in demand. Economic growth, with firms and individuals facing incentives to be innovative and work hard this creates a climate of innovation and economic expansion. There are no better alternatives, Winston Churchill said “It has been said that democracy is the worst form of government except all the others that have been tried. Those were some of the pros and advantages of Capitalism. There a lot of cons of Capitalism. Monopoly Power was one of the biggest cons that Capitalism had. Private ownership of capital enables firms to gain monopoly power in product and labor markets. Monopsony Power, firms with monopsony power can pay lower wages to workers. Inequality creates social division; societies which are highly unequal create resentment and social division. Those were the cons and disadvantages of

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