Benefits of capitalism and free-market economy Essay Example

  • Category:
    Management
  • Document type:
    Article
  • Level:
    Masters
  • Page:
    1
  • Words:
    307

I am a proponent of capitalism as it is unique in its ability to generate vast amounts of wealth while accelerating efficiency in the production process. Vitally founded on the market economy, less control by the state implies producers have the prerogative on the type and quantity of commodity to produce. They are solely guided by the demand and eventual profit. Resources in this type of set up are allocated more optimally and efficiently consequently less unemployed human as well as natural resources. Additionally, due to competition created, variety in goods and services provided is greatly enhances. Capitalism is the only resource management system ensuring fair reward for effort and inventiveness shown by individuals. Recently, this has been exemplified by monetary compensation accredited to modern inventors in the technological industry such as Jack Dorsey and Steve Jobs. Ultimately, this forms an important drive among market components to innovate eventually spurring economic growth. Capitalism improves quality in medical and educational services as their provision is liberalized and privatized. Liberalization of markets is characterized by prioritization of consumer needs and preferences. Fewer controls are required in capitalist states enabling self-control and decentralization of decision making by both consumers and producers. Capitalism has facilitated globalization as liberalization of markets instigates elimination of tariffs and non-tariff barriers. Non-tariff barriers denote technical and administrative controls in the economy. For instance bilateral trading has increased between states such as China and Russia with other countries, as the former are subtly receding from total communism. Capitalistic states with free markets have lower spreads of black markets compared to command economies. This is because goods and services once deemed legal are traded freely. Lastly, capitalism facilitates development of other freedoms such as religion, expression and political subsequently improving the human condition. As evident from history, countries that embraced capitalism evolved to uphold democracy and associated freedoms.