Academic Master

Business and Finance

Capitalism Essay

The term capitalism is termed as an economic and political system where the business and industries of country are being commanded by the private venders for profit, than by the state itself.

There are four factors of capitalism and they are extrepreneurship, labor, natural resources and capital goods.

Capitalistic owner means two things, Firstly, the owner controls the production factor. Secondly, they get their income from the ownership profit. This is what gives them ability to operate efficiently their companies. Capitalists declares that “greed is good”. They get incentives to get their profit maximum.

In corporate organizations, stakeholders are the owners of the organization. Their level of control is dependent upon the number of share they have. The stakeholders are responsible for electing the board of directors, they hire Chief Executives to operate the company.

Capitalism needs a free market economy to get successful. It is responsible for distributing the services and goods allowing to the law of demand and supply. The law of Demand states that if the demand of the product is increased then the price of that product will also increase. When the competitors are sure that they can make more profit of their product they increase its production. The greater supply results in the decrease in the cost of the product because the product is easily available in the market.

Capitalism is a powerful approach that has made a remarkable progress in the economies all across the world. It is the central institutions of private property and voluntary social arrangements. It is undeniably true that the capitalistic approach has shown positive results in the path of market systems. If we talk about the history, the traditional models other than capitalism has show reduced opportunities and less profits as compared to capitalism.

The market system in which only mutual benefit exchange is allowed, the freedom of choice is consistent and therefore it offers the great opportunity for the a moral order in which the honesty of individual is appreciated (Ikerd, John, 2008).

Works Cited

Ikerd, John. “Sustainable capitalism: a matter of ethics and morality.” (2008).



Calculate Your Order

Standard price





Pop-up Message