BIO271H1 Study Guide - Prudential Securities, Federal Home Loan Banks, Federal Deposit Insurance Corporation
Document Summary
Communism collapsed suddenly and unexpectedly in eastern europe at the end of 1989. In the soviet union, the communist party still rules, but the extraordinary social and economic chaos gripping the country suggests that the party"s days are numbered. West, many commentators acclaim the triumph of capitalism over communism. However, neither the success nor the survival of capitalism is guaranteed by the failure and demise of soviet communism. Capitalism is a legal system that safeguards private property and permits free trade in competitive markets. As long as self- interest is restrained by competition, society benefits from lower prices and greater choices. The problem is that the powerful forces of self-interest have a natural tendency to collusion and corruption. In other words, capitalists tend to seek power and to use it to rig the market in their favor to the detriment of society. The intellectual father of capitalism is adam smith.
