Positive aspects of capitalism

Capitalism is All about getting from "Rags to Riches".



• Land, Labor and capital
- You need land to produce products.
- To make products, you need to work, which is labor.
- Capital is reshaping the land by labor, turning i tinto a product

• W→C→P→W→↑
- W=wealth
- C=capital
- P=profit
- ↑=Increases
- You need wealth to buy your capital, (things you need to make your product). Once you sell your product you earn profit. When you have profit you buy more capital, which you gain wealth and your profit increases.


• Profit & Profit motive.
- When you have Money, it makes you want more Money, which is also known as the profit motive.

• Market Price
- Being able to negotiate prices.

• Invisible Hand
- The invisible hand is when Magically everything is there. The market organizes things that Benefits us, meaning society.

"Everyone benefits from lower prices, yet some Americans still distrust the market economy."