Firms in a capitalist based society face incentives to be efficient and produce goods which are in demand. With firms and individuals facing incentives to be innovative and work hard, this creates a climate of innovation and economic expansion. This helps to increase real GDP and lead to improved living standards.

Capitalism is an economic system in which private individuals or businesses own capital goods. The production of goods and services is based on supply and demand in the general market—known as a market economy—rather than through central planning—known as a planned economy or command economy.

Individual rights rule the capitalistic ideal and implementation. Private individuals, small businesses, organizations, and corporations make independent decisions about prices, production and distribution of goods, ideally resulting in a self-regulating market.

Capitalism itself is neither evil nor beneficent–it is merely a human conceit conceived to evolve the greater well-being of civilization through a free and open congress of innovation, entrepreneurship, private industry and public co.

Also the economic investment, ownership and profits are all owned by individuals. Therefore, Capitalism is the best economic system because it rewards the ones that work hard and since the government does not control trade, there is a large variety of goods and creates options for consumers to fit their personal needs.

While communism is a system of social organization in which all economic and social activity is controlled by the state. Obviously capitalism is a much better economic system to be used by a state; practical uses and statistical facts qualify capitalism as much more successful.

Capitalism has been criticized for establishing power in the hands of a minority capitalist class that exists through the exploitation of a working class majority; for prioritizing profit over social good, natural resources and the environment; and for being an engine of inequality and economic instabilities.

The disadvantages of capitalism include: Inequality – A capitalist society is based on the right to pass wealth down to future generations. If a small group of people hold all the wealth and that wealth continues to be passed down to the same groups of people, inequality and social division occur.

The VAP group discussed the causes and conse- quences of poverty at length, finding that they al- ways came back to one root cause: global capitalism. The capitalist system is held up by the rich and po- werful who benefit from its maintenance resulting in increasing inequality and poverty. If I am poor, you are poor.