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Pro capitalism arguments

Introduction

Before reading this I strongly recommend you to read Brief overview of capitalism.

Arguments

Free market benefits the consumer

Statement: When players compete for profits, this benefits the consumer

Reasoning: In capitalism the laws of the free market applies. If there are many players offering the same services, but there is enough demand, the players will need to increase quality or lower the price or their business will fail, because why would a consumer choose you over another who sells the same thing.

Proof: Wal-Mart offers many identical food items at an average price about 15%-25% lower than traditional supermarkets. Wal-Mart’s entry into a new geographic market creates a direct price effect by offering a lower price option to consumers and an indirect price effect by causing traditional supermarkets to lower their prices because of the increased competition. [1]

Free market leads to innovation

Statement: When players compete for profits, they will need to innovate or their product will remain behind.

Reasoning: In a competitive market, if one decides to stagnate another can come with a better product, so one needs to keep increasing the quality of a product if they want to keep their business up. This can lead to new technologies or new paradigms.

Proof: AMD is in competition with Intel. This lead up to many innovations from AMD like the first processor to break the 1 GHz barrier (2000) or world’s first x86 dual-core processor (2004) [2]

Capitalism has great social mobility Statement: Capitalism has great social mobility.

Reasoning: In a capitalist system, because the market is fluid, so are the classes. People can always change their social status by their decisions, the system rewarding those with good economical decisions and punishing those with poor economical decisions.

Proof: Oprah Winfrey (has a Forbes self-made of 10 ) [3], Haim Saban (has a Forbes self-made of 9) [4] +

Capitalism is consistent with psychological egoism

Use this only if you proved psychological egoism. Statement: Capitalism is consistent with psychological egoism

Reasoning: Humans do things motivated by self-interest and selfishness. Capitalism gives incentives in form of capital thus being consistent with human condition.

Cards

[1] Jerry A. Hausman, Ephraim Leibtag, CONSUMER BENEFITS FROM INCREASED COMPETITION IN SHOPPING OUTLETS: MEASURINGTHE EFFECT OF WAL-MART, MIT and Economic Research Service, U.S. Department of Agriculture Revised Draft, October 2005
[2] https://www.amd.com/en/corporate/innovations
[3] https://www.forbes.com/profile/oprah-winfrey/
[4] https://www.forbes.com/profile/haim-saban/


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