Introduction to Business Essay

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There are several economic structures that societies can follow. The United States follows the capitalistic design that allows for a more competitive economy. Capitalism, as defined in Kelly & McGowens book Busn, as a “private enterprise or free market system – based on private ownership, economic freedom, and fair competition.” Through this type of economy, companies compete against each other for customers, employees, and new ideas and innovations. Another type of economic structure that is followed in a few countries is the Socialistic approach. Kelly & McGowen identify this principle in Busn, as being based on the idea that “government should own and operate key enterprises that directly affect public welfare”. While some of the benefits from a socialistic economy benefit the society by paying for education and health care, a socialistic economy depends on higher taxes therefore driving down profits for the workers. The Capitalistic economy that the United States follows has many benefits to improving our way of life. At the same time this type idea of capitalism also can create a sense of greed. Companies are interested in the bottom line and how much money can be made from a product that is sold. This idea of making more money follows with ideas to cut production and supply costs. Many companies began opening factories outside the United States to hire people for less money to create more income for the company. While the companies may gain profits this way, it takes jobs away from American people and this takes money away from the economy the businesses are trying to succeed

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