Question

Explain the benefits of capitalism. Support your discussion with reasons and evidence.

Answer 1

Capitalism is a great economic system for several reasons.

1) Individuals have a significant amount of freedom.- Citizens have the ability to buy whatever products they want, as long as they have the money to pay for it. This allows citizens freedom, as their is no government limiting what they buy on a day to day basis.

2) Businesses compete, which drives down prices- In a capitalist society, there is very little government interference with the economy. This allows businesses to compete against each other. This competition drives down prices because if a business charges an extremely high amount for a good and another business in the same industry charges much less, people will go to the business that charges the least amount.