Capitalists

Capitalists are a vital part of the free enterprise economy. In this context, the word “capitalist” refers to those people who start, own, and expand businesses, particularly mid-sized to large businesses, instead of those who support capitalism. This group of people can also be referred to as business owners, entrepreneurs, and industrialists. Capitalists are one of the five groups of people necessary for free enterprise.

“Bigger corporations are more productive, they pay higher wages, enjoy higher profits, and are more successful in international markets”- Euractiv

Benefits to Society

Capitalists benefit the economy in numerous ways. The main benefit that these individuals give to society is by providing products and services to be used by other people. Another major way that business owners influence the economy is by employing workers. Salaries and other forms of compensation for working compose the vast majority of income for most people. This makes business owners extremely helpful to workers.

big businesses and free enterprise

“Someone who hopes to profit by investing money or financing business ventures is a capitalist. A nation’s economy is described as capitalist if it’s based on private ownership and profit”- Vocabulary.com

Exploitation

Capitalists, it should be noted, do not exploit anyone, including workers.

No one can force another person to work in a free enterprise economy. Every employer-employee relationship requires consent by both parties. If an employee finds wages too low, he or she may work for another person. If a business finds hiring an employee too costly, that business reserves the right to hire another employee for lower compensation.

The video below explains how free enterprise eliminates exploitation:

Capitalists also cannot force anyone to purchase from them. The voluntary nature of the relationship between producers and consumers, as well as competition between businesses, keeps prices low enough for consumers to buy and high enough for businesses to earn a profit. This free market system results in equilibrium, as the International Monetary Fund explains.


Capitalists are in-expendable to the economy. Their ability to create businesses results in shared prosperity for society. Refer to “How the Free Enterprise System Works” to learn more about the other four groups necessary for free enterprise.