Capitalism is a good economic system because it forces you to think about future trends and how you will keep your product relevant to consumers when competition arises. For you to excel in a capitalist society, you will need to be more innovative by maximizing the use of all available resources to have your product attract more customers. With capitalism, entrepreneurs are forced to be one step ahead of their competitors through constant inventions for them to succeed. You do not focus on the rate at which your product sells but rather how you will make it stand out to consumers by using the expertise that you have. Capitalism will only favor you when you are willing to innovate to attract more customers.
It allows people to privately cater for the production of goods and services that they sell to consumers. All the assets that you spend in production have to be privately owned. This creates a free market where anyone has the liberty to start and manage a business. Being an entrepreneur will bring you profits that will help you cater for your personal needs. Poor people have a chance to redeem themselves from living wretched lives by using their talents to make profits. With more workers being productive, the economy of a nation will escalate, making capitalism a good economic system.
In capitalist countries, consumers come first before a product is manufactured. This would mean that you will have a variety of better products and services to fulfill your needs. You are forced to perform better and offer better services to your customers if you want to keep them. Beating the competition is the goal that you will have to achieve, forcing you to give consumers better goods and services at cheaper prices. With many organizations producing high standard products, the country dominates the international market which leads to increased revenue accumulation. A consumer only accesses good products that are sold at a fair price rather than using goods that are expensive but of poor quality.
Businesses have minimal interference and regulations from the government which encourages them to expand by producing more. When the government imposes regulations on businesses, they will not be free to increase productivity as the government will control how the prices move and the number of goods that they can sell. Rules from governments hinder fast business growth which is not the case with capitalism. Capitalism requires that governments let organizations operate on their terms, encouraging production and accelerating their growth making a good economic system for companies to develop fast without limitations.
With stiff competition in the market, resources are efficiently and economically utilized. Companies have to constantly improve their productivity but since there is stiff competition, the prices will be lowered. This means that organizations are forced to utilize the given resources in that the cost of production is lower to meet the market demands. Resources are not wasted as they have to be distributed and used efficiently to solve a problem. With capitalism, a country will not have its assets lying idle but rather used to maximize production. You will also have to adapt to the changes that arise in the market and if there is a need, then resources go towards fulfilling it.
Since it embraces international trade, companies can become international giants because of the goods that they offer. Capitalism allows a company to expand its business globally by supplying its products to different countries at lower prices. It also supports the growth of local businesses ensuring that the profits realized stay in the economy of a country. Businesses will increase the supply of their products making them solve people’s problems all over the world.
Companies prioritize making profits which will mean that their employees have to work extra hard. Hard work ensures that the living standards of people improve as more profits mean a higher income. People in a capitalist country benefit from the wealth that is created by entrepreneurs. Employees will work hard so that they can solve the problems that the customers have. After the success of a firm, everyone will be satisfied because the existing problems are effectively tackled. Capitalism aims improving the lives of people by creating more jobs and opportunities for them. It provides the motivation that entrepreneurs need to earn an honest living using what they have.