Capitalism forces people to compete for scarce resources.
People compete for scarce wealth because scarce wealth is, well …, scarce. The free market enables people to compete for wealth peacefully. Before capitalism, people dealt with scarcity mainly through conquest and slavery.
Free trade has removed any excuse for victory. As Adam Smith has observed The wealth of the nation, Doing business with people from other countries to get products is much less expensive than trying to win and retain them. People produce more than they gain at the point of the bayonet when they benefit from their production.
Smith further argued that free labor was much more affordable than slavery. Again, people produce more when they benefit from their production than the threat of punishment.
Capitalism is based on greed, extreme competition, predatory behavior and almost zero sympathy.
Capitalism is based on the idea that people should be free and own themselves and the products of their labor.
Under any economic system people try to improve their own material and their families and loved ones. Is it “greed” or is it simply responsible?
In general, individuals try to improve their condition within the rules established by society. Under a free market, people trade goods and services with others. An entrepreneur who has no sympathy for his customers is less likely to understand what products and services his customers want and the business will not last long.
In a socialist country, people show the lowest ability and the highest demand, the amount that people give according to their ability and receive according to their need. Perhaps, though, the products flow from the politically weak to the politically strong. As a result, predators rise to the top.
Capitalism does not care about the poor, the sick or the disabled.
Capitalism is not a creature. Only people can take care of others, and they can take care of others no matter what economic system they are in. Under a free market system, people benefit by helping others. Entrepreneurs can only benefit by providing products and services that people want and for which they are willing and able to trade the fruits of their labor.
The capitalist system requires money for education and health care.
Resources are needed for education, healthcare, food, clothing and shelter, and one must pay for or otherwise pay for those resources. Money is a proxy for those assets and it facilitates their exchange. In a free market, people who benefit from services like education and healthcare pay for them. In a socialist society or in a welfare state, others have to bear the cost.
Economist Milton Friedman notes that there are only four ways to spend money:
The best way to ensure that money is spent wisely (i.e., get the maximum value for the least amount of money) is to let people spend their own money for their own benefit.
Richard Fulmer has worked in the industry as a mechanical engineer and systems analyst. He is now retired and a freelance writer. He has published reviews of about thirty articles and books in free market magazines and blogs. Robert L. With Bradley Jr., Richard wrote the book, Energy: The main resource.