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What are the major benefits of capitalism for building wealth? Why is freedom an essential part of a capitalist system?
The major benefits of capitalism are the freedom to own property and the freedom to choose your profession or business. Freedom makes a capitalist system work. It ensures talented people from different backgrounds can freely come together to drive societal progress.
Read on to fully discover the benefits of capitalism.
The Benefits of Capitalism
The book Think and Grow Rich takes a tangent to talk about the importance of capitalism as a practical system for achieving goals.
We have the ability to make plans for accumulating riches and put them into action because we live in a capitalist society. By contrast, individual freedoms in many other societies are sharply limited.
Our freedoms are a privilege, without which the accumulation of riches wouldn’t be possible. They include:
- Basic freedoms: Freedom of thought; freedom to act; freedom of choice, religion, politics, travel; freedom to choose where to live, whom to marry, and what to eat; equal opportunity.
- Wealth-related freedoms: Freedom to aspire to a higher station in life; freedom to own all the property you can get; freedom to choose your business, profession, and occupation; freedom to provide useful service in return for riches.
The benefits of Capitalism consist of more than money. It also encompasses groups of organized, intelligent people who come up with new ways to use money that create profits and serve the public. These people include scientists, inventors, educators, analysts, and people with the specialized knowledge to envision and produce new products, services, and inventions. This knowledge benefits hospitals, colleges and schools; pays for government services for everyone; and builds transportation systems.
Organized capital is responsible for delivering the basic necessities of life — food, shelter, heat, electricity, plumbing — at a relatively modest cost. Capitalism rallies the land, machinery, factories, ships, automobiles, and people to deliver your standard of life.
Capitalists are the people who use labor, ingenuity, and people organization to drive progress in society. They have a desire to build new things and provide useful services, and in return earn profits and become rich.
You have abundant opportunity (freedom) to do the same. But if you want to enjoy riches, you must contribute something to society in return — namely, products or services of value. The riches you receive will be in proportion to the value of what you produce.
If you don’t want to make any effort, you of course have the freedom to live as you choose, with minimal return from society . Wealth doesn’t come without effort — that is the law of economics.
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