What Is Capitalism
If you’re wondering what is capitalism, we’re going to give you a basic rundown of this economic philosophy. You may have heard about people being pro capitalism, or anti capitalism, but some people don’t really understand exactly what the philosophy represents. Essentially, capitalism is all about free and open competition for monetary gains without any restrictions.
In a fully capitalist society, there is a focus on letting people buy and sell what they want, and generally, they can keep the majority of the money for themselves to use for whatever they choose. In theory, capitalist societies trust the competitive nature of business to help keep things in check. If one business cheats people in some way, then others can make them pay for it in the court of public opinion and take their business away. Also, if one business doesn’t pay a fair wage, then other companies can steal their workers by paying more. People who favor capitalism generally believe these natural mechanisms are the only way to police the chaotic changes that occur in the business environment.
Most governments in the modern world don’t actually practice unfettered capitalism. There is usually a mix of capitalism with certain restraints imposed by government. For example, there may be legislation to protect the public safety from dangerous products, or laws forcing companies to pay some kind of minimum wage to workers. There are also often laws enforcing some kind of competition to keep anybody from developing too much of a monopoly, especially when it comes to certain crucial public services and products.