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Pros and Cons of Capitalism
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How much are your magazines?
My magazines are $10 each because I make them myself!
Wow! That's pretty cool to make them... But $10 is a lot of money! Can I pay $5 instead?
Nah, man. I'm selling these for $10. You can go to the stand across the street if you want something cheaper.
Lets see if I can find something cheaper...
One positive thing about Capitalism is that consumers (people who are spending their money) can choose how much money they want to spend!
I know we are going to make so much money when we release this new iPhone in September!
Consumers can go to different stores to find the best price and spend less money.
For sure! We have to make sure we beat Samsung. Let's increase the prices of our phones.
Once the consumer finds the best price, they can then purchase the product they are looking for.
Let's make each iPhone $1,000. People will buy it! That way, we can beat our competition.
One positive AND negative thing about Capitalism is that it creates competition.
Competition allows companies to make new products which is exciting!
However, it also allows companies increase their prices for their products which makes the consumer spend more money.
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