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Everybody has heard of capitalism, socialism, and a mixed economy. All these economic concepts represent different ideologies followed by different countries. Before we dive into why capitalism is the best form of economy, first let’s understand the meaning of these concepts. Capitalism is a political and economic system. In this, private owners control the trade and industry for profit. The state has no control over these free enterprises. Socialism is an economic and political theory of social organization.
It advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole. All the enterprises are owned and controlled by the state. A mixed economy, as the name suggests is a mixture of capitalism and socialism. The idea behind this concept is to combine the benefits of capitalism and socialism.
So now that we understand what capitalism actually means, let’s discuss the benefits of capitalism. Well, here are 5 arguments to prove that capitalism is the best form of economy:
a) Capitalism Promotes Freedom
Capitalism offers you the freedom to make choices. It promotes the ability of people to decide what they want to buy, how much they want to buy, how they want to live, etc. Whereas in socialism the government has the power to make decisions. Lack of freedom of making choices is slavery. Thus, capitalism is morally a better option.
b) Capitalism Promotes Cooperation
Statism unlike capitalism denies cooperation. The government makes all the decisions that are imposed on the countrymen. Cooperating is more of moral action than forcing a person. Thus, capitalism is a more moral economic system.
c) Capitalism is More Optimistic
Capitalists believe in a world of opportunity. To fulfill their visions they constantly survey the landscape with a hope to find possibilities to gain, to build, to expand, to create. Whereas socialists focus on scarcity and thus, ration and allocate their resources.
d) Capitalism Believes in People
The capitalist believes that people are capable of making their own choices. Thus, the entire concept of a free market is based on this idea of millions of people making individual choices. However, socialists believe the common man is not capable of making choices for themselves. Therefore, an elite must intervene on their behalf and make decisions. Capitalism displays the belief in the goodness and intelligence of the common man.
e) Capitalism Promotes Equality
Socialism always points out the income inequality in the country and use this to support. But capitalism revolves around the idea of equality of opportunity. Capitalism believes that if today somebody earns very less can still change their future by working hard and putting extra effort. Unlike capitalism, socialism believes in emptying the pockets of the rich and fill the pockets of the poor. The thing that socialists do not realize is that this step will help expand the economy.
This debate that which type of economy is better will go on forever. But there are several countries following the concept of capitalism. Seeing the success of their economy and the arguments made above prove that there is no doubt that capitalism is a much better option.