Capitalism: A monetary system that works!
It goes without saying that in America and other countries built upon the ideals and principles of Capitalism, that the benefits of a free market economy considerably outweigh the inefficiency and spoils of a socialist or state governed system. Here are just a few of the benefits of a free market, capitalistic economic system.
Competition is Good
When anyone is free to start a business and create a product to sell, it creates a dynamic of competitiveness which compels each person or company to strive to build or manufacture the best products possible. This scenario is a win-win for consumers as it demands the highest in quality and inspection. When there is little to no competition, oversight becomes lackluster or nonexistent and the quality of all products go way down, often times to the detriment of the consumer.
Supply and Demand
In a Capitalist economic system, consumers are the ones in control through the dynamic of supply and demand. If there is a high demand of a product, it is because the consumers are choosing to seek this product and supply will begin meeting the demand. In turn, consumers may choose not to like a product and supply will go down. This supply and demand is also what determines the cost of a product. So, in essence, it is the consumer that helps regulate and control what an item will cost.
For companies, large and small, and entrepreneurs, producing a high-quality product is only part of allowing them to stay competitive. It is equally important that there is constant and forward-moving innovation happening. So, a free market system inspires companies and individuals to innovate and help move us into the future. Can you imagine what life would be like without our smartphones, GPS, Instacart? Pretty dull. I’m sure. It is a free market system, which helps drive most of what we innovate.
While these three benefits are only the tip of the iceberg, they are the most prevalent and demonstrate how a free market economy is the only system that has proven itself, since the birth of our great nation, to be stable and allow for the greatest freedoms to our republic.
While others will try to undermine the ideals of Capitalism, “the proof is in the pudding” and that pudding I guarantee is the highest quality pudding on the market thanks to a free market economy!