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  Advantages of Capitalist Economy

Advantageous of Capitalist Economy:

1. Augment in productivity:

In a capitalist economy each farmer, trader or industrialist can contain property and employ it in any manner he likes. He raises the productivity to assemble his own self-interest. This in return leads to rise in income, saving & investment.

2. Maximizes the Welfare:

It is claimed that there is effectiveness in production and resource utilization without any plan. The self-interest of individual too promotes society’s welfare.

3. Flexible System:

The scarcity and surpluses in the economy are usually adjusted by the forces of demand and supply. Therefore it operates automatically via the price method.

4. Non-interference of the State:

The State has a least role to play. There is no conflict among the individual interest and the society. The economic institutions function automatically avoiding the interference of the government.
 
5. Low cost and qualitative products:

The producers and consumers contain full freedom and so it leads to the production of quality products at low expenses and prices.

6. Technological improvement:

The element of competition beneath capitalism drives the producers to innovate somewhat novel to boost the sales and thus bring concerning progress.

 

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