The essay covers the EC116 characteristics of capitalism and the advantages of capitalism for countries that abide to capitalistic principles. Capitalism is an economic system where private entities own the factors of production. The four elements are entrepreneurship, capital goods, natural resources, and labor. The owners of capital goods, natural resources, and entrepreneurship exercise control through companies. Demerits of Capitalism are less talked about in public compared to the advantages. Capitalistic ownership means two things. First, the owners control the factors of production. Second, they derive their income from their ownership. That gives them the ability to operate their companies efficiently. The advantages of capitalism result from the principles of a capitalistic economy.
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EC116 ADVANTAGES OF CAPITALISM AND ITS EFFECT ON A COUNTRY
There are several advantages of Capitalism that a country and the public would stand to realize. Capitalism naturally promotes equality for each person in the society. What is unique about Capitalism is that everyone is provided with the same chance to find success. The demerits of Capitalism, at times, cast a shadow over capitalism glory. It also creates more opportunities for innovation. In the world of Capitalism, competition is what leads to profits. The EC116 characteristics of capitalism article seek to explain the effect of capitalism on a country such as the US.
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DEMERITS OF CAPITALISM AND HOW IT AFFECTS THE ECONOMY
There exist several demerits of Capitalism with people favoring socialism. Upper sections of society control a lion’s share of income and resources. This is while others remain deprived of the basic amenities of life. The EC116 characteristics of capitalism article can help in identifying the cons of the system itself. Capitalism is a wasteful competition. A lot of money is spent on advertisement and publicity for pushing the sale of the commodity. The production is made on a large scale which cannot be changed in a short period. Therefore, under Capitalism, fear of over-production always exists. The advantages of Capitalism outweigh the demerits and allow for the stable growth of a country’s economy.
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