Capitalism is a system where business is controlled by the private sector to generate profits and there is no interference from the government. The trade of goods and services is managed by private companies. Companies have managers and leaders.  

As per the article in Teen Vogue, the effect of capitalism on people depends on whether you are a boss or an employee. The more profits a businessperson makes, the more he is going to invest, the more he would share with his workers, which improves quality of life. Standard of living based on demand and supply concept. But when business owners fail to distribute the required share of revenue with their employees, it creates inequality, both socially and economically. Capitalism means money attracts money. But only those people who have capital to invest can earn more money, not those who have less money. This difference divides society based on peoples’ working class and income.  

The Guardian wrote about capitalism on their website that critics of capitalism sometimes point out that it creates an uncertain future. Economic growth requires change and disruption. If the economy grows, because of market capitalism, we can predict with confidence that the future will be better than the present. People may invest for a better future if they feel there is a good chance that it will pay off, that the system reliably creates a better future. If doubt creeps in, people may work less, learn less, save less and if they do that, growth will indeed slow, fulfilling their own prophecies. Money would flow at slow pace which is negative sign for any economy/ The biggest threat to capitalism is not socialism. It is pessimism. Positive mindset plays a vital role in business. Taking risk for a business is necessary element. Losing confidence in investment only give doubts not the results.

Kelly, K. (2018, April 11). Everything you need to know about capitalism. Teen Vogue. Retrieved March 27, 2022, from https://www.teenvogue.com/story/what-capitalism-is  

Guardian News and Media. (2019, May 22). Capitalism used to promise a better future. can it still do that? | Richard Reeves. The Guardian. Retrieved March 27, 2022, from https://www.theguardian.com/commentisfree/2019/may/22/capitalism-broken-better-future-can-it-do-that