Capitalism

Capitalism
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  • Hello! I'm a foreign exchange student here. I don't understand how to buy my school supplies, can you teach me about capitalism? 
  • 
  • Sure!
  • Basically in America we are allowed to have a thing called private property. Private property are items of value people can own, use, and sell 
  • Because we have the right to private property, business also have the right to make a profit, sell its own prices, complete, and determine worker wages 
  • Oh that's interesting, but why is that important? 
  •  This leads to businesses producing goods and services which we pay for which they make a profit from. Profit is income minus costs. 
  • Is there one main store that sells everything? 
  • No, there are many stores all over the place. Each state sells different items and it is allowed to set prices on its product. This leads to competition among businesses, and it also leads to the failure of some businesses. 
  • ohh okay!
  • Lets go to a store and see how it works!
  • okay! 
  • To be continued... 
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