Drawbacks Of Unregulated capitalism
Introduction
Unregulated capitalism is basically a form of capitalism or a market which is not regulated orsupervised by any rules regulation or by any laws.
It is basically that market or the market in which business is not been supervised by governmnet and there is no interferance of government as those businesses have their own sets of rules and the regulation which they follows and have their own profit/ sales margins.
Discussion :
As grom introduction, it states that the unregulated capitalism is the form of market where business are regulated by themselves not by the government as they have their own sets of rules and regulation and work for their profit maximisation only. There is no interferance of the govt in these types of business. an economic system dominated by free markets and private ownership of wealth, assets and business. This refers to an unregulated form of capitalism with financial deregulation, privatisation and lower tax on high earners.
Followings are some drawbacks of unregulated capitalism:
Monopoly power : means that private business firms gains monopoly power in product. Firms with the monopoly power can exploit their powers by charging higher prices of the products.
Ignoring social benefits : if there is no regulation by the governmnt. A business can ignore its external responsibilities towards society. They are likely to ignore social responsibilities such as pollution ocuuring from production that can be harmfull for others livelihood.
Lower tax on high earners: As by lower tax, high earners businesses gets the reward and by this the big business will gets bigger and small gets smaller. Rich becomes richer and poor becomes poorer.
conclusion :
By the above discussion it can be clearly said that unregulated capitalism is somehow not beneficial for any country. Interferance of government is much necessary as in the absence of government it will leads to exploitation or fooling the customers and can also becomes the reason for fall in market demand and exploitation of the society also. By unregulated capitalism one can earn profits but it is not at oll that the profit matters a business must work as that be beneficial to both the business and the society(country) .
Submitted to : Prof. Gurdeepak Singh
Submitted by : Gurmeet Singh
( M. B. A)1st
Introduction
Unregulated capitalism is basically a form of capitalism or a market which is not regulated orsupervised by any rules regulation or by any laws.
It is basically that market or the market in which business is not been supervised by governmnet and there is no interferance of government as those businesses have their own sets of rules and the regulation which they follows and have their own profit/ sales margins.
Discussion :
As grom introduction, it states that the unregulated capitalism is the form of market where business are regulated by themselves not by the government as they have their own sets of rules and regulation and work for their profit maximisation only. There is no interferance of the govt in these types of business. an economic system dominated by free markets and private ownership of wealth, assets and business. This refers to an unregulated form of capitalism with financial deregulation, privatisation and lower tax on high earners.
Followings are some drawbacks of unregulated capitalism:
Monopoly power : means that private business firms gains monopoly power in product. Firms with the monopoly power can exploit their powers by charging higher prices of the products.
Ignoring social benefits : if there is no regulation by the governmnt. A business can ignore its external responsibilities towards society. They are likely to ignore social responsibilities such as pollution ocuuring from production that can be harmfull for others livelihood.
Lower tax on high earners: As by lower tax, high earners businesses gets the reward and by this the big business will gets bigger and small gets smaller. Rich becomes richer and poor becomes poorer.
conclusion :
By the above discussion it can be clearly said that unregulated capitalism is somehow not beneficial for any country. Interferance of government is much necessary as in the absence of government it will leads to exploitation or fooling the customers and can also becomes the reason for fall in market demand and exploitation of the society also. By unregulated capitalism one can earn profits but it is not at oll that the profit matters a business must work as that be beneficial to both the business and the society(country) .
Submitted to : Prof. Gurdeepak Singh
Submitted by : Gurmeet Singh
( M. B. A)1st
Good Attempt but little late
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