Capitalism is an economic system in which individuals choose to engage in productions for private profits. To fully understand its benefits, one can look at history for answers.
In the 18th century of England, society was based on feudalism in which peasants serve and produce for the nobles. If man was born as a peasant, then he will remain a peasant, and if he was born rich, then he will always remain rich.
As the population of peasants increase, problems arose as nobles did not know what to do with them. They were simply outcasts and the numbers continue to grow. In addition, raw materials became scarce, and the nobles could not find a solution.
Out of the crisis, some outcasts began organizing shops to produce cheap goods not for nobility but for everyone else. This innovation marked the beginnings of capitalism; mass production satisfying the needs of the mass. The people who produced the goods are also the consumers of the goods. It is a cycle that increased living standards that did not exist before.
In today's world, people lost sight of what capitalism is, such as misunderstanding that consumers are different than the producers, when in fact they are one and the same. There is also criticism that capitalism is evil, but fail to realize that it enabled the increase of living standards and population growth. Take away capitalism and we will go back to what it was before- peasants serving nobles, and low living standards.
Unfortunately, capitalism also lost the conditions that allow it to succeed as well. Originally, producers had the benefits of producing and consuming. Those in power interfered heavily through market regulations and taxation. This created an environment similar to peasants serving nobles, in which all the efforts of the producer were indirectly being stolen to benefit those in power.
