Benefit Of Capitalism In Australia

Capitalism is one economic system that I didn’t know much about until I was reading in class, and started writing this. It’s one that our very own country uses as well as Canada, United Kingdom, Australia, New Zealand, Austria, Ireland, Sweden, Switzerland, and many, many other countries that would take me too long to name. From what I’ve read, I believe Capitalism rewards individuals for the work that they have done, and not people as a whole, including the homeless and the people that don’t contribute, kind of like communism. Capitalism is an economic system based on private ownership of the means of production and their operation for profit, or a free market form. A few benefits of this known economic system would include economic freedom,

Capitalism doesn't provide for those who lack competitive skills. This includes the elderly, children, the developmentally challenged and their caretakers. To keep society functioning, capitalism requires government policies that value the family unit. Inherited wealth and wealth inequality. A capitalist society is based on legal right to private property and the ability to pass on wealth to future generations. Capitalists argue that a capitalist society is fair because you gain the rewards of your hard work. But, often people are rich, simply because they inherit wealth or are born into a privileged class. Therefore, capitalist society not only fails to create equality of outcome, but also fails to provide equality of opportunity. Another problem would include social and economic class, inequality creates social division. Generally speaking, we have an upper-class, middle-class, lower-class, and a poverty level. Some of the lower-class people may feel an angst towards the upper-class because they feel that some certain individuals did not earn their spot, and where they’re at and that they’re higher than them, socially and economically. The upper-class could have inherited their wealth from family and not technically

Feudalism was mostly confined to Europe and lasted from the medieval period through the sixteenth century. A major difference between Adam Smith's view of economics and that of present-day capitalist theory is that Adam Smith viewed value as a product of labor, and thus operated under the Labor Theory of Value, which was used by basically all economists until the Labor Theory of Value became central to Marxism. Since the seventeenth century, “capitalist” stood for the “capital-rich man who has cash monies and great wealth and can live from his interest and rents” (1756). More specifically, those designated as “capitalists” include merchants, bankers, pensioners, and other persons who lend money and thus “broker or deal in capital” (1717). Individualized property rights; commodification on markets for goods, labor, land and capital; the price mechanism and competition; investment, capital, and profit; the distinction between power-holding proprietors and dependent propertyless wage workers; tensions between capital and labor; rising inequality; the factory system and industrialized production—these were, in varying combinations, major characteristics of the concept of capitalism as it emerged in the period leading up to World War I. The term was mostly used to denote an economic practice or an economic system,