You’re in a conversation and someone says, “Capitalism only benefits the rich, not the middle or lower classes. And when the rich get richer, the poor get poorer.”

What would you say?

Though people have different ideas of what capitalism means, Merriam-Webster’s dictionary defines it as “an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, productions, and the distribution of goods that are determined mainly by competition in a free market.”

Basically, it means a system with free trade and private property.

In other words, capitalism gives citizens the freedom to own and to trade, and here are three reasons why that benefits everyone and not just the rich:

First, free trade is a win-win game, not a win-lose game. In a free trade system, everyone can benefit.

Second, free trade creates wealth.

Third, free trade is inclusive–the more players there are, the better off everyone is.

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