Capitalism And The Best Economic System Essay

838 Words Jun 2nd, 2015 4 Pages
Capitalism is a predominant economic system used around the world, while capitalism promotes economic growth and free trade the are also negative effects caused by this economic system. The purpose of this essay is to discuss why although capitalism has negative effects it’s the best economic system currently in use. First, this essay will define and explain capitalism and neo liberalism. Second, the benefits of capitalism and neo liberalism will be discussed. Third, the essay will discuss that lack of alternative economic systems.

The leading economic system capitalism can be described as a laissez faire system where all of the private sector businesses are permitted to function with their own interests and goals in mind. Within the capitalist economy the business are unrestricted in regards to pricing mechanisms, supply and demand of the markets. The government remains indirect in regards to economic relations, but is accountable for taxes, justice, and harmony (Scott, 2006). Thus capitalism can be regarded as an economic system with a passive government that promotes free trade and economic growth between private organizations.

Neo-liberalism is a set of widespread economic polices. As Martinez & Garcia (1996) argue liberalism can signify economic, political, or religious concepts whereas “neo” refers to a new form of liberalism. Ban (as cited in Campbell & Pedersen, 2001) states that neo liberalism is a heterogeneous set of notions consisting of social and economical…

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