Crowdfunding: a Socialized Response to Capitalism

Melanie Harmon Social Theory Fifth essay, prompt 2 Final Draft Crowdfunding: A interact Response to Capitalism In the debate between capism and socialism, proponents of capitalism often argue that the profit motive is necessary for innovation. commit capital in new types of goods is inherently risky, because the good whitethorn not bring in a profit if the foodstuff doesnt care for it, and the entrepreneur may go bankrupt as a result. However, this risk is necessary, they say, and therefore so is the accident of mellow profits in order to incentivize innovation. (1) In this paper, I go out attempt to counter this argument by explaining why the possibility of high profits is not necessary to drive innovation, and may even be harmful to it. Then I testament present an example of a more socialized alternating(a) to this model, and explore possible implications of it, namely that the ideas of socialism and historical materialism have yet to outlive their usefulness for describing society. In a capitalist system, the market dictates what is produced. Culturally established goods, such as laptops, cars, and shoes, have a steady demand, and so those things are steadily produced.

However, an entrepreneur may have an innovative idea for a good that is not currently supported by the market, tho baron potentially be once it is introduced. He might have invented a new gadget to fill a need that he perceived. However, in order to begin producing it, capital is necessary. Whether he already has this capital saved up, or he has to take out a loan, the initial investment is the riskiest one. If he produces his gadget, but for whatever reason nobody wants to buy it, or not enough people buy it, then he cannot keep his production running. In other words, if the market worth due to demand falls below the marginal live of supply, then profit is impossible, and the entrepreneur will stop producing the product. This in itself is good for society, because it ensures that only products that... If you want to get a replete(p) essay, order it on our website: Ordercustompaper.com

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