dimpy.handa
Dimpy Handa
Mercantilism is an economic system driven by the needs of the producer. That means it is the producer who determines what is to be produced and how much of it. It is dependent on a sympathetic government to provide protection to the producer under the guise that it is in the best interest of the nation to do so. Corporations under Mercantilism lobby government for protection from domestic and foreign competition, product innovation, price competitiveness, cost escalations of both the human and non-human factors of production, and most importantly, the consumer. These ends are achieved by government mandates and charters, price floors and prices ceilings, subsidies, drawbacks, protective tarifs and dutys. It can be said that under Mercantilism, the consumer is at the mercy of the producer, for if the consumer is unwilling to pay the asking price for the product set by the producer directly, he most assuredly will pay for it indirectly through the protective measures enforced by the government.
Capitalism is an economic system driven by the needs of the consumer. That means it is the consumer who determines what is to be produced, in what quantities and by whom. It is the consumer who sets prices by determining how much they are willing to spend and on what products. It is they who determine what is worth producing and what isn't by their willingness to buy some products over others. Under Capitalism, those producers who are best able to fulfill the most urgent needs of the comsumers succeed, whereas those producers who are unable to fulfill the most urgent needs of the consumers fail. Under Capitalism, the producer is at the mercy of the consumer.
Capitalism is an economic system driven by the needs of the consumer. That means it is the consumer who determines what is to be produced, in what quantities and by whom. It is the consumer who sets prices by determining how much they are willing to spend and on what products. It is they who determine what is worth producing and what isn't by their willingness to buy some products over others. Under Capitalism, those producers who are best able to fulfill the most urgent needs of the comsumers succeed, whereas those producers who are unable to fulfill the most urgent needs of the consumers fail. Under Capitalism, the producer is at the mercy of the consumer.