Skip to main content

Introduction 

Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Characteristics central to capitalism include private property, capital accumulation, wage labor, voluntary exchange, a price system and competitive markets.

Content 

1 A lack of consumption destroys the foundation of Capitalism.
If people decide to save their money instead of spending it, then Capitalism struggles to survive. People must be buying and selling goods and services for the economy to grow. Purchasing is what creates jobs for others. When more people are driven to purchase something specific, it creates new opportunities for growth. That’s why wealth accumulation at the top 1% of society can create shortages of income for the entry-level worker.

2. A first fair chance is not the same as ongoing equal opportunities.
The amount of wealth a person or their household controls will dictate the number of chances they have for success. With enough wealth, your chances are infinite. If you’re born into a household that is below the poverty line, you might get one chance to find the success you want. Just because Capitalism offers everyone the same first chance doesn’t mean that it is a fair system. For many, the opportunities to chase dreams are momentary at best.

3. If you can’t produce, then Capitalism says you get left behind.
It is up to each household to care for the people who are unable to care for themselves. In a true society based on Capitalism, if you are unable to support yourself in some way, then there is no responsibility to provide services or support. It doesn’t matter if you were born with a disability or someone purposely injured you to stop working. You must be essential to the survival of the society to be important.

4. Capitalism changes the emphasis on governing.
Because the state doesn’t control businesses in a Capitalist society, it must generate income from other resources. That is why taxation is a common element in this type of society. Private businesses have one large expense: labor. Because they are constantly forced to innovate, their allocation of resources is always taken away from jobs when there is a threat to their existence. Then the government taxes the profits of individuals and businesses to provide social services. At the end of the day, it is the worker who is most at risk in this society, not the business or the government.


Conclusion

 To conclude all this, we can say there is need a degree of government intervention is necessary in every capitalism so they can not misuse their monopoly power and they are not exploit their employees and suppliers for their own profits 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.





Comments

Post a Comment

Popular posts from this blog

Customer benefited from increased competition by liberalization and globalisation

Introduction: Liberalization- Liberalization is any process whereby a state lifts restriction on some private individual activities. Liberalization occurs when something which used to be banned is no longer banned, or when government  regulations  are relaxed.  Economic liberalization  is the reduction of state involvement in the economy. Globalization- G lobalization   is the word used to describe the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information. Discussion: There is strong evidence in many services, not least telecoms, that liberalization leads to lower prices, better quality and wider choice for consumers. Such benefits, in turn, work their way through the economic system and help to improve supply conditions for many other products. Thus, even if some prices rise during liberalization, fo...
1 comment
Read more

How have customer benefited by increased competition after liberalization and globalization?

Definition:- The Liberalization and Globalization. India under its New Economic Policy approached International Banks for development of the country. These agencies asked Indian government to open its restrictions on trade done by the private sector and between India and other countries. LIBERALIZATION The basic aim of liberalization was to put an end to those restrictions which became hindrances in the development and growth of the nation. The loosening of government control in a country and when private sector companies’ start working without or with fewer restrictions and government allow private players to expand for the growth of the country depicts liberalization in a country. OBJECTIVES OF LIBERALIZATION POLICY To increase competition amongst industries. To encourage foreign trade with other countries with regulated imports and exports. Enhancement of foreign capital and technology. To expand global market frontiers of the country. To diminish the debt bu...
1 comment
Read more

how firms can cope up with changing technological environment

How can the firms cope up with changing technological environment? Introduction:- Technological environment refers to the state of science and technology in the country and related aspects such as rate of technological progress, technological arrangements and application of new technology etc. A firm may have to dramatically change their operating strategy as a result of changing technological environment. Concept:- So for the purpose of coping up with the drastically changing technological environment the firms can follow the following 8 steps:- 1.  Identify current loopholes: no technology should be implemented before identifying the needs. First find out what is not working in the organization and if it is obsolete technology then change is required to be implemented. 2.  Select the right technologies: select the technology which is relevant to your business, has worked for your competitors and is easy for your employees to catch on. 3.  Inv...
1 comment
Read more