Saturday, October 11, 2014

4 reasons why Capitalism is the greatest economic system. - Being Classically Liberal - BCL

4 reasons why Capitalism is the greatest economic system. - Being Classically Liberal - BCL: Here are a few reasons why I believe everyone should be in favor of capitalism (the market economy). 1. The market maximizes economic growth.  The economy is typically measured as Gross Domestic Product (GDP), which is the total market value of all goods and services produced in a given year. Furthermore, GDP per capita (per person) is often used as a measurement of a country’s material standard of living, since it is a measure of a country’s average income per person. The World Bank has stated, “GDP per capita is the best single measure at hand to proxy a country’s living standards.” A considerable amount of research has examined how transitions from socialism (or a repressed-market economy) to a market economy (or a freer market economy), a process known as economic liberalization. For example, using data from 140 countries over the time period 1960-2000, economists from Bocconi University compared countries which underwent economic liberalization to those that didn’t, and after controlling for other relevant variables and found that, “Economic liberalization is good along…