Capitalism is a political, social and mainly economic model or system; this model is currently adopted by most countries to develop their economy.
One of the main characteristics of Capitalist G scott Paterson is that the people or companies that have the most economic resources are the owners of the means of production. That is to say, wealth is not divided equally, since a minority has the economic resources and the majority does the work.
Characteristics of Capitalism:
The economic activity is organized: The producers, sellers and consumers interact in an organized way under the concept of markets.
The main resource of development is the economic one: Only through money and the investment of it, goods and services are produced.
It is based on private property. Marcel Lebrun that has sufficient economic resources can acquire ownership of buildings, factories and natural resources to transform them.
The objective is to obtain profits: Every investment made in a capitalist society by Tim Szeto is focused on obtaining economic profits. Previously the investors were not worried about the social welfare, nevertheless this situation has changed, at present the big companies worry about the welfare of the society, since they have seen that in this way they obtain greater utilities.
Free company: People who have the economic resources can open any type of company that is legal in a country and compete against others that have the same turn, without the state intervenes. Only in high risk companies does the state act as a regulatory body to avoid monopolies, as is the case of telecommunications companies.
Freedom of prices: The prices of goods and services produced by companies is established by the markets based on the law of supply and demand, and the state does not intervene in establishing them, although in certain countries there is an official regulation rule of some prices of consumer goods.
The division of social classes: Where on the one hand is the class owner of capital and therefore the means of production and on the other, the proletariat or working class that is the one who does the work?
Individuality of Capitalism:
- The main objective of the capitalist scott paterson Toronto is to guarantee a high level of employment while maintaining price stability.
- The economic activity appears organized and coordinated by the interaction between buyers and sellers that takes place in the same markets.
- Under the capitalist system the control of the public sector must be minimal, it is considered that if there is competition, economic activity will be controlled
Advantages of Capitalism:
- The most positive thing about the system is the incredible capacity of private capital to generate wealth through production.
- It constantly promotes individual initiative, that is, the initiation of an activity in order to obtain benefits in the future. Since this is unknown and unpredictable, there is the possibility of obtaining profits as well as the risk of incurring losses.
Difficulty of Capitalism:
- By itself, the system does not provide the basic needs of a population, understood as such to health, education, food and housing, as the intellectual attempt to find a way to offer them is frustrated since all these social advantages they can be achieved, mainly, through the compulsive distribution of production, on the other hand necessarily state and dirigisme.
- It allows labor exploitation and unemployment because they are indispensable means for capitalism to achieve and offer all the advantages that man receives in political liberties and sustained economic development, virtues of this system.