What are advantages of capitalism economy over socialism or mixed economy?

Answer 1

Capitalism is an economy in which the entire economy is left in private hands. The government's sole task is only to provide a safe legal framework in which capitalism can operate safely without fear of fraud etc... Producers compete to see who can have the best and cheapest product in order to survive economically. This means the consumer will be given cheaper and better products. People have to work hard in order to survive (as opposed to socialism and welfare states) keeping everyone working hard. Innovators and inventors can take advantage of the free market to make a profit. This makes capitalism countries the primary sources of innovation and new technology. If people work harder, they can make greater profit and improve themselves. (human nature). Therefore, people work hard. By contrast, in socialist states where the money is taken by the government for distribution, there is little urge for economic betterment and hard work because no matter how hard you work, you always make the same. If capitalism is not followed, many disadvantages will come about. Example: The U.S. The more money that the United States taxes from the taxpayers and businesses and pours into social programs (aka wellfare), the less will be the taxpayers desire to work hard as his ability to obtain economic betterment is eliminated. The wellfare recipients will loose the push to work created by potential starvation and continue to not work (don't blame them, there's no reason to). Eventually more and more taxpayers will stop working and stop paying taxes in order to join the welfare recipients in order to live with no work. This has and will cause nearly all of the U.S.'s economic troubles. ~M. Hall