project about Capitalism

Draft1

An economic system has many different kinds such as capitalism. In this report, I will explain the means of economic system production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market. First, capitalism an economic system in which wealth, and the means of producing wealth, are privately owned. A distinguishing feature of capitalism is that each person owns his or her own labor and therefore is allowed to sell the use of it to employers. In a "capitalist state", private rights and property relations are protected by the rule of law of a limited regulatory framework. In the modern capitalist state, legislative action is confined to defining and enforcing the basic rules of the market, though the state may provide some public goods and infrastructure. Second, the history of capitalism dates back to early forms of Merchant Capitalism practiced in the Middle East and Western Europe during the Middle ages. According to Murray Sayle, the world's first bear raider – Isaac le Maire, who forced prices down by dumping stock and then buying it back at a discount. There are many economic systems such as capitalism so in this essay I will explain advantage and disadvantage of capitalism.

The advantages of capitalism are the government has limited control over business, which lets business compete. Capitalism lets people choose what kind of work they want to do and where they want to work. Capitalism lets people decide what they want to do with their money if they want to put it into a retirement account or in the stock market. The advantage is that it provides people an incentive to produce work and innovate, which benefits all of society. If everyone was paid the same amount of money, there would be little incentive to come up with new ideas, work harder, or put in the extra effort to produce higher quality products.

The disadvantages of Capitalism are barriers between people in terms of how much wealth they have or how much money they make. Another disadvantage of Capitalism is that government control is so limited that it lets a few businesses to dominate their industry and then they become able to make the rules for their industry. The disadvantage is not with capitalism itself, but with how it is implemented. Without adequate regulation to make sure that businesses do not destroy our environment, cheat the purchasers of their products, create shoddy and dangerous products, or cheat and abuse their employees, the owners of capital will become unfairly rich while the workers and consumers will suffer.

In conclusion, capitalism has advantages such as provides people an incentive work, paid the same amount of money and lets people choose what kind of work they want to do. Also they have disadvantages such as government control is so limited that it lets a few businesses to dominate their industry and the owners of capital will become unfairly rich while the workers and consumers will suffer.