Capitalism is an economic system in which the four factors of production (entrepreneurship, capital goods, natural resources, and labor) are owned by private entities with the aim of generating a profit. Capitalism requires a free market economy driven by supply and demand. There is a lack of government intervention. Competition helps keep prices moderate and production efficient. This stands in opposition to socialism, a system in which the means of production are owned by the state.
Capitalism is self-regulatory. It promotes innovation, freedom, and opportunity. It meets the needs of the people and is beneficial to societies as a whole.
Capitalism promotes innovation
A free market encourages technological innovations that allow society to develop rapidly and give people a better quality of life.Explore
Capitalism meets the needs of the population
Under capitalism, businesses that manufacture products that are in high demand flourish. These businesses compete with each other to meet the demands of consumers, giving consumers more choices when buying a product while ensuring that their needs are met.Explore
Capitalism helps societies as a whole.
Capitalism helps societies as a whole through higher GDP, globalization, and the invisible hand.Explore
Capitalism is self-regulatory.
Capitalism is self-regulatory. Competition ensures efficiency. Companies must adhere to the ethical and moral standards of society, or else be at risk of being damaged by boycotts.Explore
Capitalism and society both focus on freedom and opportunity
Capitalism promotes individual freedoms, political freedom, and equal opportunity.Explore
Cons of capitalism
Capitalism promotes inequality, ignores peoples' needs, and is harmful to the environment. It is also ineffective and unstable.
Capitalism is harmful to the environment
Capitalism encourages mass consumption, is unsustainable, and provides an incentive for business owners to harm the environment for monetary gain.Explore
Capitalism ignores social needs.
The success of capitalism is entirely contingent on the premise of every citizen being able to work. Capitalism doesn't provide for people that cannot work (the disabled or elderly). It is a system that values profit over the needs of the people.Explore
Capitalism results in wealth-inequality.
Capitalism results in wealth-inequality. The richest in society have more money than they could ever need while other people in the same society are homeless, hungry, and/or living in poverty. This is morally wrong. We should redistribute this wealth to help others.Explore
Capitalism doesn’t promote equal opportunity.
Capitalism does not promote equal opportunity. Some people inherit great wealth while others are born into poverty. Limited access to resources and opportunities (such as education, adequate nutrition, and healthcare) from the start limits peoples' ability to move up. Workers lack opportunity because their labor is exploited with companies trying to pay them as little as they can.Explore
Capitalism is ineffective and unstable.
Monopolies make capitalism ineffective. Corporations being "too big to fail" and economic cycles of booms and busts make capitalism unstable.Explore
This page was last edited on Saturday, 23 May 2020 at 17:27 UTC