Pure Capitalism By: Hayden Frank, Josiah Bartlett, Carson Yanaga

CHARACTERISTIC OF PURE CAPITALISM

-the free labor market system

-means of production are privately owned

-the government is rarely involved (/if at all)

-investments are easily accessible (free market investments)

-free market for goods and services

Negative claims of democratic socialism:

The Government has too much (/if not all) control which doesn’t account for the majority of people.. Like in sweden and their national debt that makes the government intervene .if people do not agree with how the country is run they are prone to promote change even to the extent of rioting.

Democratic socialism robs people of initiative, drive, and ambition…. If people lose their drive and don’t support the economy without profit then the economy will die.

Democratic socialism allows legalized theft in the name of redistributing wealth (the government has the power to attain the wealth of the people for the “greater good”) no one will agree with the government taking our things, it could again cause another uproar or riot, people have a tendency to need and want things that they don’t have so much that they could resort to violence

Negative claims of mixed Capitalism:

Government puts heavy taxes on businesses that reduce incentive to work hard or make profits. Any tax increase will make it harder for people to start businesses and it will discourage new entrepreneurs

It is hard to create a business or enter a new field because of the licenses you need to obtain first. About a third of all workers today need some kind of license. It used to be around 5%

Income is not growing for the poor or middle class as much as it is growing for the rich. Income grew 9% for households at the 60th percentile, 22% for those at the 80th percentile and 36% for those at the 95th percentile.

Positives of Pure Capitalism:

One pro of pure Capitalism is economic growth. With firms and individuals facing incentives to be innovative and work hard this creates a climate of innovation and economic expansion. This helps to increase real GDP and lead to improved living standards. This increased wealth, enables a higher standard of living; in theory, everyone can benefit from this increased wealth, and there is a ‘trickle down effect‘ from rich to poor

Another positive is efficiency. Firms in a capitalist based society face incentives to be efficient and produce goods which are in demand. These incentives create the pressures to cut costs and avoid waste. State owned firms often tend to be more inefficient (e.g. less willing to get rid of surplus workers and less incentives to try new innovative working practices.)

Also economic freedom helps political freedom. If governments own the means of production and set prices, it invariably leads to a powerful state and creates a large bureaucracy which may extend into other areas of life.

Created By
Hayden Frank
Appreciate

Credits:

Hayden Frank, Josiah Bartlett, Carson Yanaga

Made with Adobe Slate

Make your words and images move.

Get Slate

Report Abuse

If you feel that this video content violates the Adobe Terms of Use, you may report this content by filling out this quick form.

To report a Copyright Violation, please follow Section 17 in the Terms of Use.