There once was a man named Jack. He was sad. He was stranded on a desert island and unable to have any needs or wants. Due to this, His dreams centered on the different economic systems and the principles of Capitalism.
Jack went to the store in his dream and discovered the beauty of a Market Economy, which is a type of economy that is passed on individuals freedom to but and sell good and services. Through such awestriking beauty, as made observable through some aspects of the United States, he then proceeded to know the direct definition of Profit: The amount of currency that a producer earns that comes forth from earning more money then spending on an item or service. With this in mind, he pondered upon what other economic systems had to offer.
Traditional and Compitition
Jack then took to the Dream Highway and discovered a Communistic Store. He to buy materials, but he could not find a price, all he could find is pictures of ration cards associated with the items. This made him realize that he was in a Command Economy, or an economy where the Government owns all items and has complete control. He then wondered about what it would be like to not have private property, or items that an individual can own and control. He, intern, imagined what it would be Like to have a private island. He assured himself that he would make it anything but Vietnam, the nation he was visiting.
The 4 principles of capitalism explanation
Freedom of Choice is the ability to choose, with our own free will, what we want. This is an amazing ability, for it has not always been in such high regrades in society. It helps us to guide our lives in the directions of which we choose, and to be able to do much.
Profit is the gaining of money of an individual or company. This wondrous construct allows us to partake in the greatness of Choice, and it helps us to do things that we wish to do.
The next stop on the Dream Highway was America. Jack entered the first store he saw, and found that he liked it more than his other discoveries combined. This was because it was a Mixed Economy, or an economy that used both market and command logistics. He had the freedom to buy and sell what he wanted, but the government took a small percentage of money to distribute for the greater good of the country. Jack thought this was brilliant.
Jack then took on the Highway once again. But then, he was struck by a Stock Market Crash, and fell off onto a 3rd world country. Finding himself here, he decided to learn more about Traditional Economies, or economies that functioned as they always had. He found that a shiny pebble paid for a meal, so he ordered a plate of rice. He enjoyed the food. But, while he was eating, another traditional business was angered and proceeded to drag him to their store and force him to pay for another (this one being better) plate of Rice. By such, Jack saw plainly the presence of Competition, or the rivalry between businesses for consumers. He thanked the country and economy of The Native Americans.
After eating this rice, Jack felt more philosophical and understanding of Economics, and he shouted into the falling sun the Principles of Capitalism, for he saw such ways to be the precursor of greatness. (seen in text bubbles)
Competition is the rivalry between business for profit and power. Such allows society to excel through the circulation of wealth through consumers and producers, and allowing profit to be gain.
Private Property is the ownership of land or and object that an individual takes on. Such has its importance in society through the personal and economic growth associated with individuals propelled to make many to gain such, thus making the economy momentous with the want to have and make greater.