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Drawbacks of unregulated capitalism



What are the drawbacks of unregulated capitalism?
Introduction- Capitalism is an economic system where the trade, industries and means of production are completely privately owned. Unregulated form of capitalism is also known as Turbo capitalism with financial deregulation, privatization and lower tax on high earner.
Discussion- (1). Unregulated capitalism eventually lead to consolidation, the goal is to limit competition so the most profits can be obtained by goods and services being offered, this is called monopoly (2). Firms with monopoly power can exploit their position to charge higher prices. Private ownership of capital enables firms to gain monopoly power in product and labour markets. (3). In capitalist societies, there is often great inequality between the owners of capital and those who work for firms. (4). Social benefit ignored. A free market will ignore externalities. A profit maximizing capitalist firm is likely to ignore negative externalities, such as pollution from production; this can harm living standards. (5). People with inability to be productive are left behind, as it focuses on demand and supply, if you can't provide a supply and have no resources to be part of demand, then you're not needed.
Conclusion- Capitalism works fine with individual who put their profit ahead but I think sometimes it creates inequality, class conflicts. So, it’s good to focus on profit but we must not forget that we live in society and we are the one we should take care of each other.

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