In a capitalist economy, capital goods get owned by individual parties or private businesses. The
goods and services get produced in response to demand and supply in the markets instead of
having a planned economy that produces the goods and services with planned schedules.
According to Milton Friedman's principle of capitalism, capital goods are not distributive but
allocative. The means of production belong to private individuals rather than the state, making
them allocate payments depending on price indexes rather than distributes payments according to
the public's economic state (Landsburg, 2020). Capitalist earn high profits on the capital goods
they produce since they produce high-quality goods, which attract high prices in the markets they
get sold at. The operative function is not distributive. When there is a surplus in capital goods,
the capitalists will hold them to make more profits than socialism, where they get distributed to
the public for investments (Hayes, 2021). In his argument, capitalism does not make you
accessible, but its absence will make you free to access any capital goods and participate in
markets too.
The winner takes all politics. It is where an economy gets controlled by the big fish in the
industry. The distribution of economic wealth is not fair for all, and the tax policies get imposed
mainly on the middle class and the low-class citizens while the high ranking individuals get tax
cuts. Companies allocate low salaries to workers because they know that they will still work
under low wages since they are in need. The rise of super manager's concepts brings about a
situation where they do not make wealth but produce high-income levels (Hacker, 2021). The
super managers compete to earn higher income from their operations while the company they
work for earns less wealth. It analyses capital through capitalism, where the super managers get
viewed as capitalists who privately strive to earn more salaries when creating less wealth for the
company. Countries need to have a socialist approach to promote equality in the distribution of
capital goods, leading to successful economies (Dune, Grady & Weir, 2017).
goods and services get produced in response to demand and supply in the markets instead of
having a planned economy that produces the goods and services with planned schedules.
According to Milton Friedman's principle of capitalism, capital goods are not distributive but
allocative. The means of production belong to private individuals rather than the state, making
them allocate payments depending on price indexes rather than distributes payments according to
the public's economic state (Landsburg, 2020). Capitalist earn high profits on the capital goods
they produce since they produce high-quality goods, which attract high prices in the markets they
get sold at. The operative function is not distributive. When there is a surplus in capital goods,
the capitalists will hold them to make more profits than socialism, where they get distributed to
the public for investments (Hayes, 2021). In his argument, capitalism does not make you
accessible, but its absence will make you free to access any capital goods and participate in
markets too.
The winner takes all politics. It is where an economy gets controlled by the big fish in the
industry. The distribution of economic wealth is not fair for all, and the tax policies get imposed
mainly on the middle class and the low-class citizens while the high ranking individuals get tax
cuts. Companies allocate low salaries to workers because they know that they will still work
under low wages since they are in need. The rise of super manager's concepts brings about a
situation where they do not make wealth but produce high-income levels (Hacker, 2021). The
super managers compete to earn higher income from their operations while the company they
work for earns less wealth. It analyses capital through capitalism, where the super managers get
viewed as capitalists who privately strive to earn more salaries when creating less wealth for the
company. Countries need to have a socialist approach to promote equality in the distribution of
capital goods, leading to successful economies (Dune, Grady & Weir, 2017).
