Capitalism def
Def of capitalism… Huh, if you go out and ask people if they know what capitalism is, 99% of them will say YES! But once we ask ourselves what is the definitions of capitalism, we run on to some problems. There are many different capitalisms out there and therefor many different interpretations of what capitalism actually is. I will try to give my description of “general” capitalism, what I think capitalism is and what it is not.
Capitalism is a market system that runs in most west countries for centuries now. On the other site, against capitalism, is comunism, which is the exact oposite of capitalism. And this is where we run into the first part of capitalism def. Private property! In capitalism, we have private property and people own stuff they have earned and bought.
Second very important thing in capitalism is, that state tries not to involve in markey system unless it is really urgent. Capitalism should work it’s natural way and by Adam Smith, it should work without any interference. “The invisible hand” takes care of supply and demand and brings stuff to the market, that market actually needs.
The other very important part of capitalism is money. The ultimate “thing” that makes it all go round. The most wanted asset that changed the economy forever.
The bad thing of capitalism is, that rich get richer and poor get poorer. But this is the subject of another article. Great book about this is Rich Dad, Poor Dad. Will talk a bit more about bad sides of capitalism in future articles. This was just a short def of capitalism.
Written by: Matt
We also suggest this relevant article if you have time: Rich Dad, Poor Dad by Robert T. Kiyosaki
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Tagged as Adam Smith, capitalism, comunism, definition of economy, market systems + Categorized as Economy articles
thank you very much
this reading was very intrigueing
thank you so much for writing it…