Capitalist Economy:
Qualities:
A capitalist economy is generally termed as "government free". However, most are mixed, having certain levels of regulation by the government in order to protect consumers and their interests. Despite having government intervention, America is considered a capitalist economy because private businesses are free to produce what they want and choose their target consumers.
Advantages:
- Although there are price floors and ceilings, the price is largely free to be determined by the business or seller - Because of competition between similar businesses, there is a stress on efficiency of production
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Disadvantages:
- Due to the diversity in the types of businesses and employment, there is a huge gap between classes and their income- Because of profit motive, some companies ignore negative consequences at the expense of gaining more money.
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Goals:
Most people want to have a sense of autonomy in their ability to purchase goods or services. A capitalist economy works to keep the liberty for consumers to choose what they buy. This allows for innovation of new products and ultimate economic growth to satisfy the desires of the consumer.
Most people want to have a sense of autonomy in their ability to purchase goods or services. A capitalist economy works to keep the liberty for consumers to choose what they buy. This allows for innovation of new products and ultimate economic growth to satisfy the desires of the consumer.
In The News:
http://www.theguardian.com/business/2015/may/01/varoufakis-greece-bailout-eastern-europe-latvia-reform
Click the above link if you want to read into a recent event happening in a Capitalist Economy.
http://www.theguardian.com/business/2015/may/01/varoufakis-greece-bailout-eastern-europe-latvia-reform
Click the above link if you want to read into a recent event happening in a Capitalist Economy.