Government Studies ; Capitalism

By Rania Cornelia Y8B

The days we live right now is already filled with many systems controlled by leaders. Not only one leader, other people who the country votes best will be a team and lead the countrys many aspects and sides. In this essay I will be talking about one of the systems that are very popular these days among countries called capitalism. What is Capitalism? Capitalism is the most modern system in the government and many countries use this system for their economy and life. It is a system where the people get their own economic rights and freedom. What does that mean? The people in the country are able to run their own business without the government interfering with them. Many countries are already capitalists, so there are many businesses that are run by the citizens such as products that they make for markets and trades. By having this system, people will have a bigger income from their work but the difference is that they have to pay a fair amount of tax to the government so then the government can get the money for other uses that are also beneficial to the country itself. If a country is not capitalist, the products and all the economy movement will be all handled by the government, giving them the income directly and the people does not need tax. The Capitalism system is also known as the Laissez-faire system. Capitalism is also a progressive system, which means that capitalist countries does not have slaves and feudalism and every individual has their own rights and is not racist. Who started the capitalism system? A man named Adam Smith from Scotland was a philosopher and political economist back then. He was strongly disagreeing with the system back then. He created the system and the first capitalist country is England. What are the benefits and the effects of being in a capitalist country? A capitalist country means that any individual are responsible on their own economy growth. There are possibilities that people will make frauds in their business. Of course, it depends on the people itself and if they are making bad moves like frauds, bribes or anything like that, that is when the government steps in and controls the people and their business, if they are doing it right or wrong. Inequality is also a problem for capitalist countries because logically, the rich people who owns their business needs a lower class/poorer people to work for them. Don't worry! There are also benefits by having a capitalist country. - human rights - encourages local products - economical freedom leads to political rights - more ideas and inventions/innovations to expand the economic growth. http://www.worldsocialism.org/spgb/what-capitalism http://capitalism.org http://listverse.com/2012/01/16/top-10-disadvantages-to-capitalism/

http://www.economicshelp.org/blog/5002/economics/pros-and-cons-of-capitalism/

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