By Nadil Shah, Turbat
Capitalism is an economic system in which means of producing goods and services privately owned and support maximization of profits. In capitalism, whatever a person wants or do, also can produce more and more profits. A person can open private hospitals, schools and as well as industries in the country. Government and other local people do not have right to interfere in his or her legal earning process. Capitalist usually thinks about his or her profit, not for the people. Adam smith was in 18th century’s economist believes that every things should belong to the people who produces them. Moreover, there are three characteristics of capitalism.
1. Private ownership
Capitalism is the economic system that usually emphasizes on private ownership. In capitalist economies, individuals and corporations own almost all the means of producing goods and services. Whatever a person earns or gets from his hard work that person should be allowed.
Consumer should be free in buying, selling, and producing goods and services. No one should force or restrict the consumers while they are selling or buying the goods and services in market.
3. Market competition and profit
The third hallmark of capitalism is that, the producers motive by the prospect of profits, compete to other consumers desired goods and services at lowest possible prices. E.g. a shopkeeper sells a mobile for 2000 rupees and the same mobile the other shopkeeper sells it for 1500 rupees.
Furthermore, there are two types of capitalism which emphasis and help a person to produce more and more productions.
1. Laissez-faire capitalism
Laissez a Greek word which means “Alone” or “hand off” or “allow to do” It is an ancient concept of capitalism also a purely capitalist is called laissez-faire capitalism. In this type government does not interfere in the operation of economy at all. According to Adam Smith “Everyone benefits from laissez-faire”.
2. State welfare capitalism
Government just should be for protection and welfare of people. Government should be for protection means security, Schools for education and hospitals for health or treating the people.