Supportive orguments you will raise favouring capitalist economy?
Answer:
1) capitalism leads to innovation in sectors where research and development is extremely expensive and this happes without the governments expense. for example in communist russia the only kind of innovation ever developed was space exploration and that was due to the fact that it was carried out by the government as part of its defence programme
2) capitalism creates competition which drives prices down and quality up
3) capitalism means that more markets are created to suit more peoples tastes
4) capitalism uses the profit incentive to push people to work hard and benfit the community which makes it a realistic market system as well.
All you need is a list of nations by GDP to demonstrate the success of capitalism. While capitalism has its flaws, it is far more successful than every other economic model.
I think the best argument comes from the abilility (or lack of) of people to know what people want. In a command economy "someone" must know exactly what each and every person values each and every good possible to be produced. That is the only way to determine exactly what to produce, and how much to produce. In a free market or capitalist economy a "someone" does not need to know anything about what people value things. Prices show you what the values are and the "someone" does not need to direct firms to make the stuff if the value is higher then the cost to make it, they just do it to max profits. A key thing to remember about command economies is that price is not used as a signal. Prices are not allowed to move, in fact a true command economy has no prices at all but in reality no one has ever really tried a command economy on the nation scale.
Bottom line - If God was the someone then a command economy is the best way to go. If not, then you must trust indivuals to know what they want, and if they do prices will reflect what those preferences are.
Capitalism is the economic system of liberty. It allows the free exchange of goods and services in mutually beneficial and agreeable transactions.
Capitalism has created more wealth, for more people, than any other economic system.
Controlled economies require an amount of knowledge that the few people who run those economies simply cannot have, even if they are the most knowledgeable in their fields. The millions of people who everyday make decisions regarding their needs and wants direct the economy in a capitalist system, and it produces for them.
Capitalism has always existed and is not really different from communism or feudalism, physically. You need "capital" to produce, period. Capital means natural resorces, machinery and labor. You use such factors to make goods and then reinvest the economic excedents to increase the capital base.
In addition to basic capitalism certain social structures may facilitate the use of resorces and labor such as a free market, freedom of choice, democracy, private property, etc, Such concepts are not central in economy but are helpful in practice.
Ultimately all the democracy/freedom/whatever in the world wont make a difference if enough resources are not available to produce goods Our most important resorces are oil and natural gas and they are not getting any cheaper...
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