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.
Vocabulary Questions:
- What is the meaning of “intangible”? “Every machine has 3 inputs, labor, people’s work, capital, all the stuff that a business might use including intangibles likes ideas and natural resources.” Use this word 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.” Use this phrase in your own sentence.
- What does “laissez-faire” mean here, “At the height of the Industrial Revolution, the dials were set pretty close to what we now call free market or laissez-faire capitalism.” Use this term in your own sentence.
Discussion Questions:
- Are you a supporter of 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?