Essay Example about Economic Systems

Economic systems were first introduced to the world by Adam Smith, known as the "father of capitalism," in the 18th century.  Smith supported the laissez-faire ideas, believing that people should have their own freedom and that the government should not control private businesses.  Thus, capitalism was created.  More economic systems, such as communism, socialism, and utopianism, grew from that point.  Once the other economic systems emerged, people had varying opinions about which system was best for society.  Each economic system has different benefits and downfalls, but only one is superior.  

Capitalism provides a greater overall benefit to society because people are able to have individual freedom, competition results in better wealth for people and makes sure enough products are produced for society's needs.

Freedom benefits people in an abundance of ways.  It allows people to explore their personal interests, own property, and pursue a profit.  Producers are able to decide where to have a business and who their employees are.  Without it, capitalism wouldn't be the same since individual freedom is a key to the system as a whole.

According to the pdf "Capitalism: Frequently Asked Questions," "The essential nature of capitalism is social harmony through the pursuit of self-interest. Under capitalism, the individual's pursuit of his own economic self-interest simultaneously benefits the economic self-interests of all others" ("Capitalism").  In order for Capitalism to remain stable, people must be able to have their own freedom.  Individual freedom is also crucial to the individuality of this economic system compared to others and helps everyone within the system to thrive.

Individual freedom results in the government having a limited role.  The government should have a bigger role so they can control what people can and can not do to result in a better society.  Even though the government can regulate rules, they should be able to control how people run their businesses so everything is fair.