B2 – Upper Intermediate
Capitalism is an economic system where private individuals or companies own and control the production of goods. In modern capitalist economies, the prices of goods and people’s income are mostly determined by the market, based on how businesses and individuals interact, rather than by government control. Capitalism is based on private ownership, the aim of making a profit, and competition in the market.
Watch this video trying to explain whether capitalism is, in fact, broken.
Vocabulary Questions:
- What is the meaning of “to take hold”? “In England, the country for which we have the best data before capitalism, the share of income going to the top 5% of income earners, peaked at around 40% in 1801, and then, as capitalism took hold, it fell steadily to a low of about 17% in 1977.” Give 2 synonyms or similar expressions and use this phrase in a sentence.
- What does the phrase “on the other end of the spectrum” mean? “On the other end of the spectrum, at 100%, private citizens own all the capital.” Give 2 synonyms or similar expressions and use this idiom in a sentence.
- Explain “laissez-faire capitalism”. “At the height of the Industrial Revolution, the dials were set pretty close to what we now call “laissez-faire capitalism“.” Use this term in your own sentence.
Discussion Questions:
- Explain the difference between the “three dials”.
- Share your thoughts on capitalism.
- Who do you think gains from capitalism, and who faces challenges because of it?
- What are the advantages and disadvantages of capitalism?
- Are there better alternatives to capitalism? Cite some of them and give examples, too.