In Capitalism What Does Competition Do for Consumers

Capitalism can also increase the level of competition in an economy. While this might be rather bad for some companies since they may have to go out of business a higher level of competition among firms is usually quite good for the general public.

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If these consumers decide to save for future purposes there will be struggles to survive.

. If consumers do not spend their money then capitalism will not be effective. The struggles come about because the profit motive is a major feature of the free-market economy. Capitalism simply requires consumption to be successful to survive.

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