/

Pillars of Capitalism

There are five pillars of Capitalism:
Private Proverty
Self Interest (The Invisible Hands)
Economic individualism
Competition and Free Market
The Price System
Government-rulemaker-profektor

Goals of Our Economic System
In a capitalistic economy, the things that everyone can be either goods or resources. Parties therein plays multiple roles:
1. Government protects private property
2. Governments restrict ownership and sale of goods and services that affect the health, safety, and human rights.

Economy capitalist system is an organization of "giant" man-made. Capitalist system can not be separated from konjugtur symptoms. [Conjuncture is the motion of the wave of economic life]
Right to have private allows all people to control what it has, to enjoy its benefits, implementing contracts, in connection with or sell it or leave it to another party. Each individual if allowed to pursue his own interests without government interference as if guided by unseen hands in the effort to achieve the best for the community.

The Price System = The Market System / Reward and Penalty System
Any goods or services or economic resources have a price.
The Price System is a mechanism that is amazing. He in essence is a system of rewards and punishments. Rewards in the form of profits for companies and individuals are able to survive and punishment in the form of loss or the possibility of bankruptcy (out of business for those who are not stable).

Laissez Faire Doctrine declared that the government functions within the entire capitalist system is limited to:
Measures to maintain order and security
Prejudice the rights-ownership
Competition-promoting
-Spending money
-Raise funds through taxation
Capitalism is very different from earlier times with capitalism today. Laissez Faire non-governmental intervention in economic life, contemporary capitalism (modern capitalism), the government also has a more important role is to set the course of the economy are not simply left to the market system and price system.
In the United States income distribution, macro-economic activity is planned, while other decisions left to the market or the market mechanism.


Related Post



RSS Feed

0 Comments for Pillars of Capitalism

Leave a comment!

design by tikimedia © 2010 | Converted to Blogger by Blogger Templates | I Powered by Blogger