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Capitalism in the New Economy

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Essay title: Capitalism in the New Economy

Capitalism is this Capitalism generally refers to an economic system in which the means of production are all or mostly privately[1][2] owned and operated for profit, and in which investments, distribution, income, production and pricing of goods and services are determined through the operation of a market economy.

In the early twentieth century however, the well-known British economist John Maynard Keynes argued that capitalism suffered a basic problem in its ability to recover from periods of slowdowns in investment. Keynes argued that a capitalist economy could remain in an indefinite equilibrium despite high unemployment. He argued that some people may have a liquidity preference which would see them rather hold money than buy new goods or services, which therefore raised the prospect that the Great Depression would not end without what he termed in the General Theory "a somewhat comprehensive socialization of investment." He and his followers recommended "pump-priming" the economy to avoid recession: cutting taxes, increasing government borrowing and most importantly spending during an economic down-turn. This was to deter people from holding money. According to Sraffa, the tendency of capital to seek

Today in the US and in major capitalists nations, advertising clients are predominantly profit generating corporations seeking to increase demand for their products or services.

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