In Simple terms what is Capitalism and Is it good?

The rewards you get are commensurate on the amount and quality of work you do. That is a simple way to define Capitalism.

The rewards you get is called the "Capital". You can then use that Capital to get trained in the work you are already doing

and do that more effectively and be more productive.

 

By increasing your own productivity you can be more valuable and hence can demand more rewards from then on.

And this cycle continues.....

 

So you get paid for performance.

 

Yes indeed it is a good system as it gets the best out of each one of us.

 

A contrasting system is Socialism. In that everyone pools in their rewards and it is then distributed according to the needs of the people.

In such a system you don't get paid for performance but according to your needs.

 

In this system there is a risk that people become complacent and do not give their best or work towards increasing their work output or productivity.

 

Hence between the two, Capitalism seems to be better.

 

 

Capitalism can progress if you have

 

 

a) equal opportunity in education and in work,

b) good upbringing for children through the high school years so they are skillful,

c) civilized and fair behavior by people and

d) free and well-regulated markets for goods, services, labor, and capital.