Kid: What is Capitalism? Would you explain it to me?
Adult: Okay, as far as I know, Capitalism is one of many economic systems. For example: when you own a bakery and sell cakes there, you can choose the price of them, but you also have to calculate the price of your meals so that it benefits you too. There will also be competition, other bakers. You will have to compete in terms of the price, taste and quality of your cakes. You own and control your own marketing.
Kid: Seems good and it's fair, but do we have to deal with the competition?
Adult: Yes, you do. Another problem you might face is a supply problem. If the demand of cakes in your are is not high, like when people aren't in need of cake, they would not buy it in a high price. That is because, cakes are not their main need. If they are hungry, they can eat other cheaper food. So you will have to sell it where the demand of cakes are high.
Kid: Why are some people protesting over Capitalism?
Adult: In the eye of the seller, it's all good when supplies meet the demand, but think of a larger scale and more possibilities. Where bad people take part in Capitalism. For example, the demand of fuel is high in a country and the only company producing it is a government company. That company might make use of the high demand and the low competition, by raising the price of the fuels so that people have no choice but to buy what's available.
