Capitalism Is An Economic And Political System - 1684 Words

Capitalism is an economic and political system in which a country s trade and industry are controlled by private owners for profit, rather than by the state. This leads to the constant competition within companies to make more profit. There are three characteristics of capitalism: Goods and services are privately held, limited government intervention, and prices are determined by supply and demand [Farrell 2015]. Due to capitalism companies are forced to make questionable decisions in order to stay ahead of their competition. The goal of these choices are to make more money and spend less of it. This often involves laying off workers because they often change their form of manufacturing, or relocating to another country for cheaper labor costs. These decisions can go on to affect their employees and the community in ways that they would never imagine. In the film Roger and Me, Director Michael Moore witnessed how the effects of capitalism ran a booming city into the ground. Flint, M ichigan was the home of eleven successful General Motors factories that employed a lot of the city and made the city a lot of money. While the factory was thriving Roger Smith, the CEO of GM at the time decided to close all eleven of the Flint factories in order to open up new factories south of the border in Mexico. When the factories went on to close it resulted in a loss of eleven-thousand jobs, and the morale of the city. Considering General Motors employed the majority of Flint withShow MoreRelatedCapitalism Is The Most Influential Economic And Political System Essay2012 Words   |  9 PagesCapitalism is the most influential economic and political system in the world today as it has had a large effect on some of the defining aspects of the world, from abolishing feudal rule as â€Å"feudal rulers were continually forced to turn for loans to their resident burghers†¦ by the way the leaders stood this was completely incompatible with feudal rule†. (Heilbroner, 1992, p. 34) And introducing an early version of economic freedom referred to as the society of perfect liberty by Adam Smith. CapitalismRead MoreCommunism vs Capitalism992 Words   |  4 PagesIs Communism a better economic system than capitalism? By Michael Kujawski Since the beginning of the 20th century many countries have favored the economic system of communism over capitalism many political partys around the world that are communist based have the term â€Å"workers party†incuded in their name because communism is a system for the working class and capitalism is a competitive system for the upper class society to benefit. Read MoreThe Failure Of Neoliberal Capitalism1565 Words   |  7 PagesPrompt One Response: The Failure of Neoliberal Capitalism Over the last forty years, neoliberal capitalism has constructed a new global stage based on the principles of the free market and supply-side economics. 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