Dominant frameworks of Capitalism:

Capitalism is more complicated than most would understand, there are many different aspects to the way it is run. The official definition of Capitalism is an economic system in which goods and services are produced, distributed and consumed through the mechanism of a free market based deeply on the right to private property and the profit motive. The three major defining concepts of capitalism are Land, Labor, and Capital. These all have a lot to do with the production of a product. Land (the natural world) is the natural resources the product needs. Labor involves all the work necessary to produce and sell the product, lastly Capital which is the resources (the stuff) used to "re-shape" and sell the final product. People who have money to start off are able to get father in life than people who don't. There is a lot of strategy behind capitalism many companies and businesses try to make the most money possible while spending as little as possible this is also known as profit motive. It the seller and the consumer who both try and get the most out of every dollar they put towards the product, the price of their product set according to the market price. That is the highest price the seller will sell their product for and the lowest price the consumer is willing to pay for (buy low, sell high). Based on supply and demand the market price will shift. If demand of a product goes up price and quantity will also go up, if demand goes down so will the price and quantity. If Supply goes up price goes down while quantity goes up, lastly when supply goes up quantity goes down. A free market economy will cause competition between business because the government does not impose regulations with leaves the market to set its own level, this lack or regulation is what is causing the economic crisis occurring right now. Why do people work as hard as they do? Is it because they want to? The invisible hand is what pushes you to do not always what you want, but what you know you have to do in order to provide a comfortable life for yourself and the people in your life (self interest). One of the most common stories you will hear in American is the "Rags to Riches" one. So many people are drawn to the fact that we have upward mobility, where you can start at the bottom with little money but still make it to the top. That motive knowing you can make something of your life encourages people to continue to work.