There are two sets of conditions thatcontribute to the dynamism of a capitalist economic systems, one is economicand the other is Political. Explain what economic conditions may hindercapitalism...

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There are two sets of conditions that
contribute to the dynamism of a capitalist economic systems, one is economic
and the other is Political.



Explain what economic conditions may hinder
capitalism and what political or economic conditions could enhance a dynamic
capitalist economic system.

Answered Same DayAug 02, 2022

Answer To: There are two sets of conditions thatcontribute to the dynamism of a capitalist economic systems,...

Komalavalli answered on Aug 02 2022
17 Votes
Capitalism is commonly conceived of as an economic system in which private actors own and manage assets in line with their interests, and supply and demand are free to establish market prices in a way that serves them the best interests of society
The profit incentive is central to capitalism. As Adam Smith, the 18th-century philosopher and founder of modern economics put it: "We do not anticipate our food from the goodwill of the baker, butcher, or
ewer." Both sides have a strong stake in the result of a voluntary transaction, yet neither can receive what they want until the other gets what they want. Economic success may be achieved through rational self-interest.
At different times, it has had extended recessions (1930s), periods of widespread unemployment, and falling living conditions. Successful enterprises can achieve monopolistic power in a free market. This enables them to charge customers additional costs. Capitalists claim that economic freedom can only be obtained through capitalism. However, monopolistic freedom may be misused, and individuals suffer as a result of having no other option. Consumers have no alternative but to pay consumer pricing in sectors where monopolies exist, such as tap water or power delivery. Monopolies such as Standard Oil bought out our rivals (often through unfair competition practices) and subsequently were enormously lucrative. In a free market, factors of production may simply be shifted from unsuccessful industries to profitable new ones. However, in practice, it is far more difficult.
Dynamic capitalism is the process of creating wealth. The dynamics of the establishment and expansion of new and innovative firms, as well as the fall and bankruptcy of existing...
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