The majority of us would agree that being able to own our own business and keep most of our hard-earned income is a good thing. It is also safe to bet that most of us would agree that having the government control every aspect of our lives – while taking most of our money from us for the “public good” – is a bad thing.
Based on all the recent news stories the media has been feeding us, we would think the first ideal described was socialism and the latter was capitalism. However, it’s the other way around. Capitalism describes the desirable version of life whereas socialism describes the depressing one. Why is hating capitalism the newest trend in the media? Capitalism provides us with so many benefits we don’t even realize most of the time. I have listed 5 of these wonders below.
In a free market society, the only way businesses can succeed is through supply and demand. Companies have the incentive to make their products more cost-effective than their competitors’ products. They also must produce a good for which there is a demand, otherwise the firm will go out of business. The result of this is that firms end up reducing inefficiencies in their workplace by cutting costs and producing goods at the most efficient level. This also supplies the public with a good they actually want.
We often hear that capitalism breeds innovation. This is because firms have incentives to work hard and produce new items for the market. Competition creates innovation because everyone wants to be the inventor of the newest good. With innovation comes a higher standard of living for the average person. A competitive climate boosts the economy and the well-being of the populace.
With capitalism, everyone has the opportunity to succeed. The environments that we are born into do not need to negatively affect our future. If a person wants to be a doctor, a business owner, or even the President of the United States, they can. The only thing stopping us from achieving greatness is ourselves. Through capitalist structures, we have equal opportunity for all. We all have the chance to succeed in society as long as we work hard and are willing to try new things.
Capitalism provides people with the freedom to do nearly everything they please. When it comes to institutions, food, and many other goods, there are so many options to choose from. Since capitalism causes innovation, it would make sense that there would be a wide range of goods to choose from in the marketplace. This allows individuals the freedom to buy what they want, go to the institutions they want, and live the lives they desire without government intervention.