What is Capitalism

What is Capitalism - businesses hard 2 The government...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Evan Brown BUS 101 Terri Barr 13 March 2011 What is Capitalism 1. The US economy does not operate under pure capitalism. The fact that there are regulations and regulatory organizations proves the US economy is a managed economy. The government should not operate under a system of pure capitalism because it would create a large gap between the rich and poor and there would be a greater number of poor people than rich. Regulation created the middle class because the rich had to pay more to the poor. If they were not regulated there would be sweatshops, like we see overseas. The advantage of regulation is that it prevents businesses from getting to powerful and it distributes wealth. The disadvantage of regulation is that the businesses have to follow more strict guidelines and it makes the startup for small
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: businesses hard. 2. The government should regulate businesses. The government regulates in order to control the power of the business. If it didn’t there would be a large gap between the rich and the poor because the owners would profit outstandingly while their workers would make next to nothing. If the government did not create a minimum wage in 1938, workers may not receive enough compensation to live unless they went to extreme measures to demand more. The advantage of government regulation in this case is that it acts as the voice of the people and turns their pleas into demands. The disadvantages is that government can artificially correct the economy and create an even larger disaster later on that would be even harder to correct than the first issue they strived to correct....
View Full Document

Page1 / 2

What is Capitalism - businesses hard 2 The government...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online