Capitalism is an economic system that advocates free trade, competition, and choice as a means of achieving prosperity. The means of production are generally privately owned and operated for the purpose of profit. Most modern economies are mixed, so they incorporate capitalism and socialism. The United States of America is an example of a country that follows a capitalist economy, however, there are still some public enterprises. Capitalism is also known as a market economy.


The YouTube title for this video is "American Propaganda-Capitalism (1948)"
It was used as a propaganda video to support capitalism. See for yourself! :)



The man who played an improtant role in capitalism was Adam Smith. He described capitalism as a system were decisions are made by private entrepreneurs, capitalists, and rooted in private ownership of means of production. The government plays a limited role in the economy. Adam smith claims “that, in a free market, an individual pursuing his own self-interest tends to also promote the good of his community as a whole through a principle that he called the invisible hand”. To make this statement more clear it’s like saying you create a vaccine, like a vaccine for aids, for the good of the people and in return you will make a lot of profit.

Entrepreneurs is an example of capitalism and they also play an import role in it. Entrepreneurs’ take risks and when they are successful they can create companies, jobs for workers, taxes for governments, returns for shareholders, new products and much more. A couple of famous entrepreneurs are Mike Lazaridis, the creator of the Blackberry, Bill Gates, the founder of Microsoft, and Howard Schultz, the founder of Starbucks, are many examples of famous entrepreneurs.

external image capitalism3.jpg

Competition plays an improtant role in Capitalism. This picture is showing without competition there wouldn't be a variety or quality of good things that consumers want, and when there is competition that quality of the product rises.






http://cecteachers.dpsk12.org/stories/storyReader$75
http://en.wikipedia.org/wiki/Invisible_hand
http://www.detlefjumpertz.com/drawings/capitalism3.jpg

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