Capitalism Is a Just Economic System

Here is how Laissez Faire Capitalism is defined: ". .. [It] describes an environment in which transactions between private parties are free from state intervention, including restrictive regulations, taxes, tariffs and enforced monopolies. I post this mainly to caution my opponent when he draws conclusions from prior events, and not mixing up so-called crony capitalism with the capitalism I am arguing is just. [1]I will also go deeper into how I think "just" should be defined. If you look back, I defined just loosely as, "Based on or behaving according to what is morally right and fair. " Another way to define it is, "Honorable and fair in one's dealings and actions. " Overall, I will be arguing that capitalism is morally right and fair, and also showing how capitalism is the best economic system because of certain characteristics of it. [2][3]The Morality of CapitalismOne of the major virtues of capitalism over most other economic systems is the ability for individual choice and liberty to make one's own economic decisions instead of such being dictated by a government or even collectively. While collectivism may seem more cooperative than individualism, and thus more moral, collectivism, as preached by communists, is flawed in the understanding of cooperation. In fact, in a novel titled Flowers in the Mirror, we see that a business deal where both parties look out for each other reach consensus and a just deal while a business deal where both parties look out for the interests of each other never reach consensus. What is left is a society in chaos because no business deal can be reached "If things were to continue in that way, the Gentlemen [the good people in the story] would likely die out and be replaced by the Inconsiderate and Coarse. From the above point we can see that humans can only co-operate when they seek their own interests. That is the secure foundation on which humanity is able to strive for an ideal world. If humankind were to directly and exclusively seek the benefit of others, no ideals could be realized. "[4]Contrary to what my opponent might claim, capitalism does not function as some sort of anti-cooperative system where a kind of law of the jungle characterized by survival of the fittest prevails. Quite the contrary, in fact, because capitalism can be a benefit to all: "The wealth and technology that capitalism creates — e. g. , the medical miracles that now routinely save previously "unfit" people — demonstrate that capitalism's benefits are not restricted to the fittest. .. That means that virtually all survive better, making capitalism dramatically anti-Darwinian. " How exactly could a system that benefits everyone be a dog-eat-dog system? " While capitalism does spread benefits unequally, it benefits everyone, whereas most other systems result in a net cost to society. [5]The Virtues of CapitalismCapitalism has a number of benefits that make this cooperative and fair forces work. These forces help to make capitalism a just economic system. I've left out raw empirical evidence, but if my opponent requests some, I'll post some in one of the next two rounds. I. Supply and DemandIf there's one thing people know about economics, it's supply and demand - as the supply increases, the price falls because (assuming the demand stays the same) the overall worth of the product is less; as the demand increases, the price rises because (assuming the supply stays the same) the overall worth of the product is more. Because businesses seek to maximize profit, they seek an equilibrium point of supply and demand. What all this means is that surpluses and shortages, which are very common in other types of economies, are not generally found in Capitalistic economies because of the laws of supply and demand. "At this point, the allocation of goods is at its most efficient because the amount of goods being supplied is exactly the same as the amount of goods being demanded. Thus, everyone (individuals, firms, or countries) is satisfied with the current economic condition. "[5]II. Competition and InnovationCapitalism, because of its inherently competitive nature, creates a sense of competition (i. e. for the most profit). What this means is that companies will produce the best products (to maximize sales) for the most efficiency (to minimize costs from inefficiency). "Competition in the marketplace is good for consumers and good for business, too. It benefits consumers by keeping prices low and the quality and choice of products and services high. It benefits businesses by promoting innovation's improvements to make products different and often, to make them better in ways that consumers want. "[6]Competition therefore leads to innovation, and it is innovation that has been the driving force behind the industrial revolution and subsequent rapid increase in technology. In other words, capitalism breeds innovation, which improves the lives of everyone. "Capitalism has made advances possible, not solely in providing life's necessities, but in science, technology, and knowledge of all types upon which human society depends. Freedom attracts innovators and explorers and gives life to their ideas. Freedom for people to act in their own self-interest is the mainspring for a diversity of ideas, innovations, and experiments that lead to the discovery of new products, services, and other means of production. "[7]In general, capitalism encourages efficient enterprise, which inevitably leads to a more wealthy society capable of expanding its economy, and ergo its wealth, even further. III. Private PropertyOne of the many advances in human civilization has been the advent of private property. Private property allows for rights to be endowed upon people, where people can keep what they earn. In the words of Ludwig von Mises, ". .. [private property is the basis for] joint action and cooperation in which each participant sees the other partner's success as a means for the attainment of his own. " This goes back to the laws of supply and demand mentioned earlier - whereas in other economic systems, shortages are common, capitalism's need for private property allows for one to satisfy needs and wants because of certain rights. [8]"In enriching most those who are most productive, capitalism allows the survival of billions of people who would not otherwise have survived. In fact, capitalism gives everyone, particularly the weakest, whom it is accused of harming the best chance not just to survive but to thrive. One of many ways this is revealed is the vast increases in leisure that markets have made possible, while real incomes dramatically increased at the same time. "[8]ConclusionCapitalism is an inherently moral system because of its reliance on cooperation and fair business deals, making it a just system. The three things I mentioned above show how this system does this. Because each individiual is capable of making his or her own decisions, everything works out in the end because every person's net benefit is maximized. Sources[1]: . http://en.wikipedia.org...[2]: . http://www.oxforddictionaries.com...[3]: . http://www.thefreedictionary.com...[4]: Llosa, Mario Vargas et al. The Morality of Capitalism: What Your Professors Won't Tell You. p. 43-46. [5]: . http://www.investopedia.com...[6]: . http://www.ftc.gov...[7]: . http://mises.org...[8]: . http://mises.org...