The Importance Of Capitalism In True American Fashion

In order for a nation to be successful, it must establish a strong economy which decides how its resources are distributed. The choices made by these nations can be categorized into three generalized groups, or economic systems: capitalist, socialist, and communist. Each systems entails different policies regarding production and consumption, but only one outweighs its disadvantages in terms of efficiency. Capitalism describes a market based economy between consumers and businesses, without the interference of government. This political freedom allows profit to be reinvested in the economy, thus maintaining the system as a beneficial part of society. Through its utilization of competition, consumer preferences, and innovation, capitalism
The incentive to outsell and outperform competitors ultimately reduces the price of goods and increases the productivity of the business. When looking to sell the most product, a business strives to provide their product for as low a price as possible while still making a profit. If a business is unable to keep up with the reduced prices, consumers will not be interested in purchasing their product, therefore putting the company out of business. Similarly, competition influenced the wages of the workers in these industries. Businesses that were interested in hiring workers looked for people who were willing to work for the least amount of money. In this way, the business encouraged competition between potential workers and saved money on wages. In the Gilded Age of American History, this idea rampaged through industries. The newly settled immigrant in the urban centers looked fro work in the competitive industries, so businesses capitalized on their dependence on wages. They hired only those who would work for less, which explains the eventual creation of labor laws and labor unions to prevent businesses from taking advantage of its workers. Overall, the competition that characterizes a capitalist economic system increases the efficiency of an economy and benefits the society in which it
As a result of the incentive program and the emphasis on consumer preferences, a capitalist economy serves as a catalyst for innovation and higher quality of goods and services. In order to remain competitive within the free market, businesses must provide the best quality product for the lowest possible price. With all businesses trying to improve their products, innovation is bound to occur. This rapid increase in quality creates and maintains an climate of economic growth and expansion. The increase in GDP, or gross domestic product, improves the living standards of the general community and will in theory benefit everyone regardless of socio-economic class. In the famed Gilded Age, the idea of innovation is apparent in every budding industry. Whether it be steel, oil, railroad, or another, the industries prospered at the hands of their own employees. Moreover, the emphasis on creation and development in a capitalist economy increases national wealth and improves the living standards of all