Capitalism Essay

836 words - 4 pages

Miguel Beatrice
Capitalism is an economic system in which private individuals and business firms carry out production and exchange of goods and services through complex transactions involved in prices and markets.
By extension called capitalist higher social class of this economic system ("bourgeoisie"), or to the common form would the individual interests of capital owners in both companies, shareholders and patterns, also called capitalism entire social and political order (law, idiosyncrasies, etc..) that orbits the system while structurally determines the possibilities of its content.
Capitalism is based ideologically in an economy in which the market prevails, it is usually given, ...view middle of the document...

In this market there is also a large number of people or companies (plaintiffs), which, according to their preferences and needs, or buy such products or commodities demand. Through competition is established a "rivalry" or antagonism between producers. Producers seek hoard as many consumers / buyers for himself. To do this, use strategies to reduce prices, improved quality, etc.
The political doctrine that has historically led the defense and implementation of the economic and political system has been the classic economic liberalism and which is considered the founding fathers to John Locke, Juan de Mariana and Adam Smith. The classical liberal thought in economics argues that government intervention should be reduced to a minimum. You should only take care of the legal system that guarantees respect for private property, the defense calls negative liberties: civil and political rights, control of internal and external security (justice and protection), and eventually the implementation of policies to ensure the free operation of markets, since the presence of the state in the economy would disrupt its operation.
Other trends in the economic, thinking that assign different functions to the State. For example those who ascribe to what is claimed by John Maynard Keynes, according to which the state can intervene to increase effective demand in times of crisis. You can also mention political scientists facing the state and other institutions an important role in controlling market failures.
Once explained the whole concept of capitalism, it is easy to see that there is a close relationship with stakeholders such as BGS, with ethical businesses to be sold at fair prices and with governments to stay...

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