By Jessica Custodio
In order to understand what capitalism is, we first must define it as an economic system, not just an ideology.
Glenn Hubbard defines capitalism as “[a] political and economic system of private ownership of property and the means of production, with public policy protecting those rights of ownership. Capitalism is a dynamic economy that leads to individual freedom.” 1
For an economic system to not only work but also thrive, it must have the ongoing resources for productive activity, the administration of input, output, and income, as well as, improving the standard of living, and a widely spread deliverance of prosperity. 2
Especially in current times with the high demand for speed, technology, and rapid solutions, capitalism provides a solution to fulfill these needs and the freedom for people to produce these solutions.
A Teen Vogue article would have you understand Capitalism as “Individual capitalists are typically wealthy people who have a large amount of capital (money or other financial assets) invested in business, and who benefit from the system of capitalism by making increased profits and thereby adding to their wealth.” 3
What Teen Vogue fails to tell is that capitalists are not only “wealthy people,” but are people who believe in a system that provides the opportunity to be free, to build on an idea without big government interference, and to provide consumers with jobs and products.
While capitalism is a system that can bring a person wealth, it also provides the means to be free.
Capitalism has also historically provided America with the means to thrive and continuously innovate and improve. Such as Abraham Lincoln’s idea to connect the transcontinental railroad with the nation’s market or the opportunity to create and capitalize on providing society and the economy with better lives, capitalism has and currently drives America to continue to be the world’s leader in free-market economics.
Jessica Custodio is a Contributing Writer for YAAS and a student at the State University of New York-Dutchess. Jessica is also the New York Senior Correspondent for Campus Reform. When not debating socialism and politics, you can find Jessica at a local coffee shop or bookstore.