Top 10 Reasons Why Capitalist Economic System Is The Best

There are many important reasons why a Capitalist economic system is preferred rather than Socialist and mixed economic systems. The capitalist economic system is also known by the name free enterprises. It is also known by the other term as the private business enterprises.

Any economic system has three basic functions. They are production, consumption, and growth. Whether it is a capitalist economic system or mixed economy system, it should perform the above-mentioned basic functions. This is the basic principle of any economic system to achieve better production and growth.

The capitalist economic system is better than socialist and mixed economic systems because-

1. In the Capitalist economic system, there is the absence of central planning. In many parts of the world, it is clearly seen that many unwanted issues and orders arrived in the presence of central planning. As a result, it was difficult to work or get certain goals in such an environment.

The capitalist economic system is best because there is no presence of central planning.

2. There is the economic freedom of the capitalist economic system. In the case of another type of economic system, there is a lack of such economic freedoms.

3. This type of economic system has a perfect competition and is preferred for better output. In the case of other economic systems where there is the presence of central planning, it is very hard to see a fair and perfect competition.

4. The capitalist economic system is also defined as the dynamic economy as it is the profit motive and individual initiative. In compared to other economic systems, the capitalist economic system has better profit output and high production.

5. No bureaucracy while running the economic system. No bureaucracy means no any obstacle to development and is highly profit motive.

6. There is the proper basis of cost calculation in the capitalist economic system i.e. there is the absence of a proper basis of cost calculation in the mixed economy system or another type of economic systems.

7. The economic power will be in the hand of the individual. One can easily invest the economy budget in a profitable manner.

8. The government can't interfere with this system like in the Socialist economic system. This is also the reason why the capitalist economic system is best compared to the socialist and mixed economic system.

9. The government can't interfere with the private assets and property.

10. It is the most significant type of economic system because it is the private business enterprises. The central government can't control it but can monitor according to certain rules and regulations.

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