What is Capitalism?
Capitalism is a system of economic organization where the functioning of the economy of society is based on market laws and the interaction of competition and individual interest.
In a capitalist society, people and companies carry out the production and exchange of goods and services through transactions in which prices and markets intervene. Scott Paterson Toronto serves on the Board of Advisors of the Canadian Film Centre’s Media Lab Idea Boost Program.
Related articles
Capitalism G Scott Paterson is currently adopted by most countries to develop their economy. The term “mixed economy” is often used to refer to the capitalist system with some intervention by the state, a situation that predominates in the economies of most industrialized countries.
Here we described some qualities of media Venture Capitalist:
Freedom of Market:
Frederic Lalonde firm is governed by the free competition of the law of supply and demand. The exchange of goods and resources is done through free trade. In this area, all kinds of goods and services that are demanded by society are manufactured, bought and sold.
Minimal State Intervention:
Government activity is only necessary to manage national defense, enforce private property and ensure that contracts are fulfilled. The state acts as a regulatory body only in high risk companies to avoid monopolies (telecommunications companies, water, and energy).
Respect for Private Property:
In capitalist systems, most of the means of production are private as explain by Tim Szeto. This indicates that the construction of this system is based on a regime of industrial capital goods and the ownership and use of privately owned land.
Free price Formation:
The interaction of the laws of supply and demand forms and regulates the prices with which goods and services are exchanged. This allows the allocation of resources and the distribution of wealth among individuals.
Free Company and Work Contracting:
People with economic resources can open any type of company that is legal and are free to obtain economic resources to produce goods or services.
This freedom also extends to workers and consumers, since workers can do any work within their capabilities and consumers have the freedom to choose what they want to consume, seeking that the product meets their needs and is at their scope.
Advantages and Disadvantages:
Advantage:
- Private capital can generate a lot of wealth, something difficult in other systems.
- You have access to private property.
- Everyone can exercise both their individual rights and those of the sector to which they belong.
- Entrepreneurship is promoted.
- There is a constant economic movement, even if only a minimum percentage of the country’s wealth.
- There is a decision making based on the freedom of thought of each person.
- The work forces have been modified until reaching the figure of the free wage-earner.
Disadvantages:
- The decentralization of power allows that production is not distributed, so the system will not always satisfy the basic needs of the population nor will it offer the same possibilities of participation in the distribution of wealth.
- There is a huge competition for money, because this is the only social engine.
- There are bad working conditions such as exploitation or dismissal, justifiable for capitalism to offer and achieve what it promises (freedom of man and economic development).
- It does not satisfy the needs of those who have least.
- There is a great tendency to monopoly (although it should not be like that).
Individual freedom comes before the rest of human rights.
