Why Capitalism Works – The Perspective of a Former Welfare Child

In the United States we thrive through a system of capitalism. Capitalism is defined as “a social system based on the recognition of individual rights, including property rights, in which all property is privately owned”. Here in America capitalism is fiercely debated because of the many affects it has on the country both good and bad. I’m a firm believer of making progress not only through wealth creation but through prosperity that can be attained by the masses. That feeling alone led me to write this article on why I believe that capitalism can be better than what many believe it to be.

First of all, capitalism allows for the individual to pursue their own dreams through any legal means. This is good because one can think of an idea and feel passionate about it and try to see if it can succeed. If it does then that individual is able to reap the benefits of his work. Our government encourages this by making free enterprise simply that, free.

The next and probably the biggest upside to capitalism was how it helped to free so many people from slavery and bondage. Capitalism doesn’t allow for a caste system where one is born into a certain lifestyle and stays in that their entire lives. This can make a very poor man wealthy but on the other hand if a wealthy person doesn’t do good business he can fail. It helps to try and even the playing field.

This system of capitalism also helps to encourage competition. When there is competition this forces people to reinvent their product to better compete and to bring more like minded people into their organization. This brings jobs that can be well paying and ultimately helps people to make a better life for themselves and their families.

So many people are against some forms of capitalism and I understand why but if you look at this system objectively one can see that it helps more than it does harm. When someone is allowed the chance to drastically change their situation they come to America why, because of our system that allows for anyone to do well if they work for it. This is why capitalism is a good system and is why it’s beginning to be adopted around the world.