Capitalism helps societies as a whole

Capitalism helps countries to have effective wealth creation. People face incentives to innovate and work hard. When one person starts a business, they give people jobs that give people money that they then invest in the economy and the cycle continues. This creates a higher GDP which leads to a higher standard of living for everyone.^[1] Capitalism in one nation also helps other nations as well. Globalization, free markets, and free trade can allow countries to access goods and services from all over the world. Countries can use their competitive advantage and people from everywhere are encouraged to be innovative. Capitalism inevitably benefits society as a whole. This can best be characterized by the idea of the invisible hand. The concept of the invisible hand was first introduced by Adam Smith. It is a metaphor that describes how the self-interested actions of individuals lead to unintended beneficial social and economic outcomes.^[2] In other words, when people act in their own self-interest, the economic outcomes benefit everyone. This can be seen by the fact that in a capitalist society, production and consumption is a symbiotic relationship. A tourist wouldn’t be able to travel without an airline, and the airline wouldn’t stay open without tourists.

[P1] Capitalism leads to a higher GDP which leads to a higher standard of living for everyone. [P2] Capitalism in one nation also helps other nations as well. [P3] Capitalism inevitably benefits society as a whole.