Hey! It’s Dan Zimmerman. Welcome to Illustrate to Educate! Please like the video and subscribe to support simple and objective videos on topics that matter. Have you ever wondered what Capitalism is? In this video, we’re going to look at a simple explanation of Capitalism as well as the pros and cons. Capitalism is an economic system in which private individuals or businesses own and control the means of production, distribution, and exchange of goods and services. Under capitalism, the pursuit of profit and individual self-interest are the driving forces of the economy. In a capitalist system, individuals are free to own property, start businesses, and compete with one another in the market. Prices are determined by supply and demand, and profits are reinvested into the economy for further growth. The government's role in a capitalist system is to ensure a level playing field for all market participants, enforce contracts, and protect property rights. There are many different types of capitalism, including laissez-faire capitalism, where the government plays a minimal role, and welfare capitalism, where the government intervenes to provide a safety net for its citizens. Next, let’s look at some of the original thinkers on Capitalism. One of the most famous books on capitalism is "The Wealth of Nations" by Adam Smith, which was published in 1776. Smith argued that capitalism would lead to increased wealth and economic growth, as individuals pursued their own self-interest and specialization in the production of goods and services. Another important thinker on capitalism is Karl Marx, who wrote "Das Kapital" in 1867. Marx saw capitalism as a system that exploited workers and concentrated wealth in the hands of a few capitalists. He argued that capitalism would eventually lead to its own downfall, as workers became aware of their exploitation and revolted against the capitalist class. Next let’s look at the pros and cons of Capitalism. Those who argue for Capitalism say that it promotes innovation, entrepreneurship, and competition, which in turn leads to increased economic growth. They argue that this results in a higher standard of living for society as a whole. Next, they argue that Capitalism allocates resources in the most efficient manner possible, as the market determines the prices of goods and services based on supply and demand, which they say ensures that resources are used in the most productive way possible. Supporters of Capitalism also argue that it provides individuals with the freedom to choose what they produce, consume, and invest in which allows people to pursue their own interests and maximize their potential. Lastly, they argue that Capitalism creates jobs as businesses expand and new businesses are formed. This provides employment opportunities and contributes to the reduction of unemployment. Those on the other side of the debate argue that Capitalism can lead to wealth and income inequality, as the rewards of economic growth may not be distributed evenly. They argue that this can result in some individuals or groups having a disproportionate amount of power and wealth. Next they point out that Capitalism may allow for the exploitation of workers, as businesses may pay low wages and offer poor working conditions in order to increase profits. Those against Capitalism point that it can have negative environmental impacts as businesses prioritize profits over environmental concerns. This can lead to pollution and the degradation of natural resources. Lastly, those against Capitalism argue that it can be subject to economic cycles of booms and busts, which can lead to economic instability and uncertainty. What do you think about Capitalism? Be sure to leave a like and a comment and don’t forget to subscribe to Illustrate to Educate to support more simple and objective videos on topics that matter.