Question

Proponents of free enterprise think that capitalism performs the greatest good for the greatest number of people in terms of individual self-fulfillment and the general material progress of society. Do you agree? Why or why not? Give specific examples.

Answer 1

Capitalism is a concept wherein the forces of market demand and supply decide the prices of goods and services which will be sold. Over the years, this concept has gained key momentum across the globe, and has been widely accepted to be the best form of managing a countries economy. Other methods include that of socialism wherein, the government decides, our overall level of consumption and what goods and services are to be produced in the economy.

There is agreement over the fact that capitalism brings in the maximum good for the greatest number of people in any society. It brings in a culture wherein the aggregate demand for goods and services is in line with the needs and wants of the customers, and only those goods and services are sold in the market place which have maximum desirability. So, if a countries population is low income and is currently evolving, even then if capitalism is implemented, only those goods and services would be produced in the country which have maximum demand in such a market type. This enhances the overall consumption pattern in the economy and the cycle of employment generation and a better income and living standard economy takes place.

For example, consider an economy which is relatively poor, and the demand for goods such as agriculture and basic necessities of life is relatively higher. Allowing capitalism to exist in such a society would mean that the maximum goods which are produced are in line with such demand as the government has no control on the market place.

When demand is high in these economies, the producers gain maximum profits and this creates employment opportunities for everyone, increasing their overall income, living standard and their access to modern facilities such as education, healthcare and nutrition,

Thus, we can conclude by saying that the demand of majority of people gets fulfilled in a capitalist society which only works towards making sure that the needs and wants of the customers are satisfied in the best possible manner. Further, the competition in these countries also leads to innovation and producers make maximum revenue which increases the chances of employment for vast majority of people.

Please feel free to ask your doubts in the comments section if any.