What Are the Benefits of the Capitalist Economic System?
There are many ways to construct an economy. One model is socialism, in which all people are required to contribute their possessions and earnings to the common storehouse (usually run by the governing authority) for distribution among everyone, even if some of the recipients did not labor to produce anything. Another model is the capitalist model, where individuals or businesses own products or ideas, and decide on their own how to price, manufacture and distribute those goods in a free market without government intervention. Capitalism Enhances Innovation Capitalism relies on good ideas or products to succeed. The capitalist figures out what people want or need to purchase, then devises the most efficient way to manufacture and distribute that product. Henry Ford, for example, developed the assembly-line manufacture of automobiles. He, as the creator, benefited greatly from being able to produce more cars. However, he was also able to hire an increasing number of people at a good wag
