Bajric Sanel
Ph.D. Economics & Computer Science
Understanding Capitalism: An Economic System that Fuels Progress
As an economist and computer scientist, I have always been fascinated by the dynamism of capitalism. It’s an economic model that champions competition, entrepreneurship, and wealth creation, making it a catalyst for innovation and economic development.
Capitalism is essentially a free-market system where the production and distribution of goods and services are controlled by private entities, not the state. Businesses compete for customers, leading to better products and services, competitive pricing, and ultimately a thriving economy.
Entrepreneurship is at the heart of capitalism. The system encourages individuals to start their own businesses and innovate. This fosters a culture of creativity and resilience, creating job opportunities and contributing to economic growth. It’s no coincidence that some of the world’s most successful entrepreneurs emerged from capitalist economies.
Wealth creation is another cornerstone of capitalism. The prospect of earning profits motivates businesses to perform better and individuals to work harder. While wealth disparity is often criticized, it’s important to understand that capitalism also creates opportunities for upward mobility. In a capitalist economy, anyone with a groundbreaking idea or a strong work ethic has the potential to build wealth.
To the ordinary person, capitalism might seem daunting with its emphasis on competition and profit. However, when understood as an economic model that promotes progress through competition and encourages entrepreneurship, capitalism can be seen as an empowering and liberating force. It provides opportunities for individuals to improve their economic circumstances and contribute to society through their innovations and hard work.