apitalism Explained America is a country that is famous for its capitalist economic system. Capitalism has been considered one of America's best qualities for many years, and it has been the main reason for the country's success and rise to power. People have seen America's economic system as a chance for anyone to become successful, and many people have immigrated to this country in search of more opportunities and a better life for themselves and their families. However, some think that our country is turning more towards socialism and less towards capitalism, and it makes them nervous. With the millenial generation now voting for America's leaders and the older, possibly more traditonal voters outnumbered, our country's economic future is uncertain. …show more content…
Capital is defined as money or credit used to buy labor, machinery, or materials for production (Hanson Lecture). Capital is usually used to buy a business location, buy "means of production" that you can use to produce your commodities, and labor (Hanson lecture). The upper classes with their capital that they turn into businesses then produce commodities. A commodity is "a marketable item produced to satisfy wants and needs" (Hanson lecture). This can be anything from a watch to a cookie to appliances. Once the commodities are produced, they are then put on the market for sale. Once they are sold, the business then pays the laborers and any other bills, and they "recapitalize" the rest of the profit by reinvesting in their business so the cycle of capitalism can continue (Hanson Lecture). This is a very basic explanation of capitalism; it is a very complex system. Now that the process of capitalism has been explained, what are the characteristics of capitalism? Capitalist societies usually have more freedom than societies dominated by communism, which is an economic system in which the government is in complete control of all