The Profit Motive In American Society Term Paper

The Profit Motive In American Society - Term Paper Example Capitalism is not just any system as it facilitates the economy of a nation by allowing its citizens to own their businesses by creating the services and goods needed by others in exchange for money. It is said that the main objective of the system is to gain the profit which anybody would love to have as they get to grow their money (Nee 3). Ultimately, the growth means more purchasing power for the owners of the money and they can buy more of what they want and need. Profit is not the only consideration in a capitalist economy as market competition also exists. Market competition occurs as there is more than one provider of the same product or service to customers whether the clients are consumers or businesses. The competition becomes stiff when there are many providers in the same niche market or industry (Metcalfe and Warde 1). It leads to close fight for market share and the tendency to offer the prices of the commodities lower than the competing brands just to increase sales.P rofit may be connected to capital accumulation which is different from the competition. Accumulation of capital is pursued to grow the business and multiply the money. For stock corporations, the growth can provide additional dividends to stock holders or provide additional shares in the stock. Employees also receive the increase in their remuneration when they perform well and as the business grows. Capitalism has various formats and variations depending upon the culture and geographical setting of the system.