In a capitalist economic system, people can own businesses and make profits. Our economic system, called the capitalist system, allows people to make decisions with little government interference. For the most part, people are able to make their own business and investment decisions. If these decisions are successful, people can make a lot of money. The incentive for taking risks and developing businesses is that people can make significant profits if they are successful in their business activity.
The potential for profits and the freedom from many government rules and controls separate our economic system from a communist economic system. In the communist economic system, the government makes many decisions and establishes many rules and regulations. This tends to discourage taking risks and the development of new businesses. There is little incentive to take risks because of the numerous government controls.
Thus, the capitalist system allows for businesses to make significant profits if the businesses are successful in what they do.
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