Is Capitalism the Best Economic System?

Name Institutional Affiliation Course Code/Title Instructor Date Is Capitalism the Best Economic System? The term capitalism has gained new meaning over the years although “capitalism” and “capitalist” were already vernacular terms in English, German, and French. For instance, in German, the term ‘capital’ initially meant invested or lent money. This meaning was in the 16th century, but in the18th century, that meaning was lost as the concept referred to assets including manufacturing plants, commodities, commercial paper, monetary values, and money (Kocka 2). In the contemporary world, capitalism refers to an economic model where the private sector is indirectly governed but controls by far, the direction of the economy. In the same system, the market is controlled by the invisible forces of supply and demand. The government in this economic model is responsible for the creation of a conducive environment for business operations through establishing peace, justice, and taxation (Scott np). Despite the proclaimed level of greediness among people and corporations, capitalism is the best economic system because the profound competition increases the quality of products in the marketplace, raises job opportunities, and elevates the level of corporate social responsibility (CSR) among large corporations. In his book, “The Wealth of Nations, “Adam Smith, the father of modern capitalism states, “As every individual, therefore, endeavors to employ his capital in the support of domestic industry… (Smith 291).” Besides the individual, corporations and business follow the same rule. As they endeavor to achieve their interests and more so, financial ones they are compelled to provide the best quality of products in the market. That means that firms that produce low-quality products are at a certain point coerced to exit the market through forces of demand and supply. This after-effect favors the customer because it guarantees not only the availability of commodities but also the quality of these commodities. ...