Capitalism

Our country is a capitalist society, however there are many different ways to look at it. Capitalism is defined as an economic system in which goods and sources are produced, distributed, and consumed. This is all done through the mechanism of free markets. Capitalism is deeply based on the right to private property and the profit motive. It can also be looked at as an economic system...The main aspects of capitalism is land, labor, and capital. Land is any natural resource (trees, soil, etc.), while labor is any type of work put in to produce and sell the product. Capital is the resources that were used to create more of the product and sell it. People who have money to begin with, will most likely get further in life, because they have more to invest. The main strategy behind capitalism is for businesses to make as much money as possible, while spending as little as possible. his in the end will call for a bigger profit. In capitalism one thing that the consumer and the producer have in common is they both want to get the most out of the money they put towards the product. This is where market price comes in. Market price is where the seller and the consumer meet, the seller is selling for the highest price possible, while the consumer is trying buy for the lowest price possible. The market price of a product solely depends supply and demand. Supply is the total amount of resources/ products for sale at all prices. The demand is the demand of what will be bought. When the demand goes up price and quantity also goes up, however when demand goes down, price and quantity follow it and also go down. When supply goes up the price may go down, but the quantity will go up. in turn when supply goes down, price will go up but quantity will go down. The free market of Capitalism is controlled by a "Invisible Hand". This essentially means that the market is not controlled by a physical thing or person, it will eventually work itself out.