Sunday, March 4, 2012
Capitalism... For Real
Capitalism is an economy designed to circulate money through buyers, sellers, and producers. It is completely based on supply and demand. Supply and demand determine what is made, how much is made, and what price it is worth. When people need something a lot, demand goes up which means there needs to be more supply. The sellers buy from the producers, then they sell to buyers for a profit. When more people need something, and the supply is not as high, the cost of that product goes up. When there is an over-abundance of something, the cost goes down to help get rid of the product.
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Good stuff! The only thing I'd add is that the government remains completely separate from all things in the market, and they let the buyers and sellers work it out for themselves.
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