Please enable JavaScript.

Coggle requires JavaScript to display documents.

Capitalism - Coggle Diagram

- - - - Private property
        
        You own things that you can use as you wish
      - Markets
        
        The exchange of goods or services by buying or selling reciprocally and voluntarily
      - Firms
        
        The most recent institution
        
        A way of organizing production with specific characteristics
        
        One or more individuals own the goods used to produce.
        
        Paying workers
        
        Goods an services are properties of the owners
        
        Owners sell in the market for profit.
        
        It expanded the labour market
        
        Making the employers the demand and the workers the supply
        
        Where production happens
        
        The other institutions work because of firms
- - - - Division of labour happens because since everyone has one task they need each other to get the final product
        
        Cooperation between people makes capitalism work
        
        This along with technologies allows economic growth.
- - - - GDP per capita
      - Productivity
      - Conectivity
      - Greenhouse Gasses
- - - - Incentivize competition therefore innovation will happen
      - Best managers and firms surviving, if you're not good enough, you're out.
      - Public policies that support basic services
      - The gvmt keeps a stable society, healthy environment and base resources
      - Strong law enforcement
    - - Private property needs to be enforced and secured by the law
        
        Otherwise people will be more drawn to lobbying and criminal activities
      - Markets have to be competitive
      - When owners and managers have their place because of connections