The Good and Bad Things of Capitalism

The Good and Bad Things of Capitalism

The good thing about capitalism is that the market controls itself naturally where creators of products must be seen positively by perspective customers. This means that when a company chooses to mislead consumers about the condition of an item, then making profits will be a huge challenge. The rules of supply and demand govern capitalism, which forces suppliers to only offer customers the best goods that they can make. Capitalism does not have room for suppliers who want to make more money by poorly manufacturing their goods and trying to sell at high prices. The quality of your good is what dictates whether it will sell highly or not therefore, capitalism ensures that only the best products are sold while poorly manufactured ones are totally eliminated.

It ensures that workers use their

It ensures that workers use their full potential to make profits and support themselves. Entrepreneurs with great brains are free to put their thoughts into solving problems which can bring them money. Instead of a person wasting the skills that they have, capitalism makes them realize their full potential. Humans always want to escape from poverty and capitalism motivates them to use everything that they have. You will have to better the lives of others using what you have as you have no limitations on what you are supposed to do or not. It gives you the opportunity to try multiple times as per what is necessary for consumers until you succeed in making goods that will always be needed by buyers.

Capitalism promotes compassion whereby you must

Capitalism promotes compassion whereby you must help others for customers to realize how important your product is. You must develop goods and services that can help others solve their problems. Although the purpose of doing this work is self-motivates, compassion is dictated in capitalism since making money involves helping other humans in some way. It is also compassionate in that you can only earn profits by helping more people maintain their productivity or hold a job.

The Good and Bad Things of Capitalism

Customers risk exploitation by entrepreneurs who eventually dominate the market without any competition. Companies with monopoly power will increase the prices of their products. The success of one business eventually leads to other competitors collapsing. This means that customers will buy one product and as with time, the other competitive products will no longer be on the market. It is disastrous for a good to lack competition as this will mean the demand is higher than the supply. When this happens, the price of that commodity will increase drastically.

With inheritance allowed in capitalism, children born in rich families are the ones who can access all the luxury. The unfortunate ones will continue suffering under the hands of the rich. Corruption takes root in society because the rich will want special treatment. A small percentage of the population can access luxury and quality services. Wealth will be accumulated by only a few families while the majority suffer. The rich will access better education and upbringing which will make them do well in their lives.

Since it relies on financial markets, capitalism is not flexible as it experiences drastic fluctuations. When consumer sentiment changes, the market crashes as products are no longer needed, causing economic downturns. Capitalism has suffered prolonged recessions and periods of mass unemployment when companies fail. Living standards of people decline when the company collapses because a product has lost its value on the market. It is hard for companies to recover in a capitalist economy when their product is considered invaluable. Family owned businesses risk collapsing because of the greediness that emerges between family members. Since there is nobody to make them account for the operations of the business, workers get sacked and money is squandered carelessly.

Materialism advocates for materialism as profits are what makes a business stand out. The capitalist system can create incentives for managers to pursue profit over decisions which would maximize the social welfare of people. Entrepreneurs want to charge more for people who want to access the services without waiting. This leads to corrupt managers who want to get more profits, denying services to those who cannot afford extra favors. Only human beings with extra money will be given services as they can bribe the officials to quickly attend to them. This has created a society where resources are not equally distributed to the whole population but to the privileged while the other people are marginalized.

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