capitalists and free enterprise

Capitalists are a vital part of the free enterprise economy. They start, own, and expand businesses. Capitalists do not need to have inherited huge sums of money in order to get where they are. Anybody in a market economy can own a business if they want to.

Capitalists make money in the form of profit. They sell goods, such as electronics, timber, and gravel, and services, such as medical care, car washing, and property management. The cost of providing that is lower than the business owners charge, creating profit. Value is created when the inputs into a business are processed into the outputs. Profit is the measurement of that value. Thus, a business that creates no value can earn no profit.

timber in winter
The businesses of capitalists supply the world with many products, such as timber.

Capitalists help the economy by bringing new ideas to fruition. The drive for profit results in firms competing to add the most value through the economy. The result is increased wealth for everybody. Job growth, investment returns, and tax revenue all depend on business owners seeking to earn a larger profit. These people are vital to a functioning free enterprise system.

Free enterprise allows these business owners to thrive. That is because they have the right to earn a profit and use that money as they so desire. They are almost entirely unrestricted in their actions under a free enterprise system, creating a positive economic environment for everybody.

There have been many successful capitalists throughout history. People such as Andrew Carnegie, John D. Rockefeller, Jack Ma, Ray Kroc, and Bill Gates all started enormous businesses that have left a lasting impact on the global economy.

Free enterprise allows capitalists to add value to the world to the best of their ability. Business creation and development results in a better life for everyone. The ambition, perseverance, and innovation of these people allows them to succeed.