Flashcards
Capitalism
Cards in this deck (9)
- 1CapitalismHave power over your own business, it is the opposite of communism. Can start your own business and make a profit. Can own Land.
- 2Dictionary DefinitionIs a social system based on the principle of individual rights. Politically, it is the system of laissez-faire (freedom). Legally it is a system of objective laws (rule of law as opposed to rule of man). Economically, when such freedom is applied to the sphere of production its result is the free-market.
- 3Capitalism DefinedCapitalism is an economic system in which major resources and enterprises are privately owned and the main purpose of all economic processes is to generate private profit.
- 4OriginsBased on individuals investing money to make profit.
Using money to make money
This means having spare money, you don't need to live on borrowing money to invest
Banks borrow to those who are likely to pay them back, therefor the rich can invest - 5EffectsIndividuals or small groups who own the resources control businesses and employ people are the capitalist. They control the wealth of the country.
- 6Is it a good system?Thought to be good because it encourages individual effort. Allows people to become rich. encourages competition. It can lead to monopolies. It is not just an economic system but a philosophy. Opposed to communism.
- 7Means of productionResources - labour - Capital = enterprise.
- 8AdvantagesThe promotion of individualism and innovation.
In an optimal economic system, wealth is attainable for some, as services and products are sold above production costs.
Markets work through bringing together buyers and sellers. - 9DisadvantagesDiscrepancy in the rates of wages
Difference in income, is distributed disproportionately.
Repeated cycles of financial crisis, job insecurity, high unemployment.
Some living in poverty while others live in luxury.
Information
- Description
- High School Certificate History Flashcards on Capitalism , created by clark.phoebe on 10/11/2015.
- Created by
- clark.phoebe
- Views
- 5
- Rating