Understanding Creative Capitalism And The Free Market

2100 Words Jul 8th, 2015 9 Pages
Module 5
Understanding Creative Capitalism

According to http://financial-dictionary.thefreedictionary.com/Free-market+capitalism, free market capitalism is a system of economics that minimizes government intervention and maximizes the role of the market. According to the theory of the free market, rational economic actors acting in their own self-interest deal with information and price goods and services the most efficiently. Government regulations, trade barriers, and labor laws are generally thought to distort the market. Proponents of the free market argue that it provides the most opportunities for both consumers and producers by creating more jobs and allowing competition to decide what businesses are successful. Critics maintain that an unfettered free market concentrates wealth in the hands of a few, which is unsustainable in the long term. In practice, no country or jurisdiction has a completely free market. ((n.d). Retrieved July 6, 2015 http://financial-dictionary.thefreedictionary.com/Free-market+capitalism).
Creative Capitalism, according to Bill Gates definition is a way to best spread benefits of capitalism and the huge improvement in quality of life it can provide to people who have been left out. The approach advocates the setting up of businesses that provide products and services for the poor. Creative capitalism is not about increasing the philanthropic contribution of a company, it is about providing an incentive to companies to become…
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