Blog Entry 8- Companies Compete, You Win!

Capitalism is defined as an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market (Merriam-Webster, 2010).

We live in a wonderful nation.  American citizens retain the right to pursue any aspect of life they choose.  Our capitalist society also allows for the privately owned businesses to take care of their own activities.  When companies have complete control over their private production and profits, competition is the next logical step.  Companies with the same interests can compete with one another for the patronage of consumers.  Prices are often the variable being decided on.

Health care has been a rising issue for some time now.  With medical costs on the rise, many people are wondering how they will afford medical care.  This is where competition plays its part.  When consumers pay for medicine themselves, saving insurance for the big things, and doctors deal directly with consumers, doctors begin to compete (Stossel, 2007).  This economic competition is what keeps the prices low.  Low prices create happy people.  So the next time you see that annoying advertisement on television, remember this:  that annoying advertisement is keeping prices down for YOU.  Competition gives consumers more choices. And choice gives them power (Stossel, 2007).

http://bennygunns.com/wp-content/uploads/2009/06/the-faces-of-capitalism1.jpg

Citations:


capitalism. 2010. In Merriam-Webster Online Dictionary.     
     Retrieved October 18, 2010 from http://www.merriam-     
     webster.com/dictionary/capitalism.


Stossel, J. (2007). Medical Competition Works for Patients. Real Clear Politics. Retrieved from http://www.realclearpolitics.com/articles/2007/10/medical_competition_works_for.html