Question

As a student of economics, what arguments would you advance for market capitalism as a desirable economic system

Answer 1

Market capitalism is based on four basic freedoms-

1. Freedom of production- individuals are free to produce and encourage to do so. They are not restricted by any bureaucratic regulations.

2. Freedome of exchange- there are no restrictions on exchange of goods which creates the free market.

3. Freedom of ownership- individuals are free to own both peespers property and means of production. They can thus use their individual ability to improve their lives and thus can improve the lives of other in the society.

Freedom of thought- individuals are free to share their thoughts. This allows the human mind to innovate and improve the world around them.

As a result of this people in capitalism can become great producers which benefits everyone. A look at history will tell you that capitalist country have done much better than other type of country.

Advantages-

1. Capitalism results in best products at best prices. That is because the consumer will pay more for what they want more. They make their production as efficient as possible to maximize profit.

2. They believe in innovation of production method. It also means innovation of new products.