Essay about An Important Factor That Impacts The Economy

1405 Words Jan 17th, 2016 null Page
An important factor that impacts the economy is the unemployment percentage of a society. Workers are essential in gathering and producing resources that enable supply. As the population increases it causes an increase in demand, the need for supply increases and therefore, a need for efficiency arises. Division of labor is a method that has been implemented to ensure that the members of a society are productive to the economy by providing more jobs that are specialized in nature. The job specialization involved with the division of labor offers capitalistic economies that ability to maximize supply and demand in an efficient way that is most beneficial to the entire society. Capitalism is defined as an economic system that allows private ownership of businesses, encourages market competition, and allows the pursuit of profit (Henslin, 2013). The purest form of capitalism does not have any government interference, but gluttony is so common that governments must step in and regulate the system in order to protect its citizens. This is seen as state or welfare capitalism. The technical definition of division of labor is “the splitting of a group’s or society’s tasks into specialties” (Henslin, 2013, pg. 103). This develops a dependency on others to accomplish their jobs in order to accomplish one’s own job. Even with that side-effect division of labor is important in a capitalistic economy where the population continues to expand rapidly. The greater the population is the…

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