+1 862 207 3288 A capitalist economy is better described as a living organism, in that, it is constantly evolving. It is a system that has evolved over the years. The price mechanisms are principle in co-ordinating the economic device. The price mechanism is essential for a capitalist system and behaved in a automatic fashion. In a pure capitalist system the people own the majority of the goods and services, so trade flourishes in such a system. We are able to freely, sell labour services, invest in human capital and do various things to add to their value and offer them to prospective employers. As we are the sole owners of our labour services we are able to supply them at a price that we wish, thus in a capital system, the allocation of labour services will no doubt reflect their relative scarcity and will further allow private ownership of many commodities and allow trade to flourish….(short extract)
