Scenario 1: After spending several years as a volunteer in very poor areas of former Soviet countries, a dentist is struck at how many do not have access to toothpaste because it is too expensive and because people are not aware of its benefits. Out of compassion, he starts a company to produce and sell toothpaste for a low price. Because of this, there is a huge decrease in the incidence of cavities in these countries. He also advertises his product often to promote the use of toothpaste and almost everyone becomes a customer.
Scenario 2: A very greedy, evil man decides he wants to become rich. He sees an opportunity in the market. In the former Soviet Union, he sees very few people using toothpaste. He decides to manufacture and sell toothpaste, but because there is some competition, he offers the lowest price to maximize market share and sales. He often thinks to himself how much he hates the people in the country in general. To get the seal of approval from the Dentistry association, he meets all the safety standards.
In both scenarios, the price of the toothpaste, the number of customers, and the advertisements are identical. In effect, both produce the same results. The population is just as well off in both cases. This is why capitalism is a good system. It does not depend on the morality or goodness of the people involved. In scenario 2, if the entrepreneur produced low-quality toothpaste or harmful toothpaste, he would not get the seal of approval. If the price was too high, he wouldn’t get customers. Capitalism means all people must provide for others. Unfortunately most people do not see this. They say to have good economics, people must be morally good. This is only true of authoritarian regimes. Another common criticism of businesspeople is they are “greedy”. But again, as the example above shows, this is irrelevant. That’s why capitalism is superior to other systems.
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