Capitalism?

Question

i have an essay to write on the pros and cons of capitalism.
Here's wut ive been given as instructions :

given what yoiu know about capitalism, write a detailed essay listening the pros and cons of the system. Be sure to use real life examples. Ultimately, are you in favor of this economic system? why/why not?

I have no cluw what capitalism means. can anyone make it plain and simple for me? and if possible, fill me in on some of the pros and cons. much thnx.

Answer 1

capitalism

Critique: Capitalism
Capitalism is based on the Darwenian concept of survival of the fittest. While I am aware of no nation that practices a pure form of this economic system, several Western countries use a form of capitalism the core of their economies. Scaled-down examples of capitalism are flea markets, bazzars and black market trading.

Properties of Capitalism
Social/cultural rules and political laws define the environment.
Supply and demand provide environmental pressures.
Those that best "fit" that environment survive and maintain the rules/laws.
Those that can't/don't thrive in the system, and otherwise lack participation, are culled.
Successful capitalistic systems tend to be open and competitive.
A healthy capitalistic system results in economic incentives.


Advantages of Capitalism
Capitalism is an internally stable economic system, in that it is consistent with human behavior. People understand that life is not fair - there's no "free lunch". You have to work to survive, and only the lucky who manage to thrive within the socio-economic matrix make it to the top. As long as there is a belief/hope that one can advance in the system, there is an incentive to participate.
Capitalism is also externally stable, in that survival in a capitalistic system requires innovation and flexibilty to keep up with the changes in supply and demand. Such a system is generally prepared to deal with the influx of competition from external sources.
Large populations are likely to be diverse, which is beneficial to healthy capitalistic systems.
Large, diversified societies tend to gravitate towards heirarchical social systems; capitalism easily adapts to such structures.
Disadvantages of Capitalism
It is not acceptable in most modern societies to allow portions of their population to be "culled".
Those in power tend construct rules that limit diversity and competition, thereby weakening the flexibility and strength of the system as a whole.
Vast imbalances in opportunity encourages revolt, which disrupts and destablizes the system.
Remedies for Capitalism
Create secondary social mechanisms to support those that do not "fit" in the socio-economic system.
Encourage the inclusion of all members of the population to compete, and open up competition to external markets, in order to maximize diversity and flexibility.
Educate the elite to the systemic benefits of resource distribution, and encourage incentives for such distribution.

Answer 2

No - I can't. Capitalism results in massive inequalities. In the twenty first century, we still cannot provide drinking water for much of the world's population, feed everyone adequately, provide housing, or give everyone a decent wage. A few at the top coin it in at the expense of the vast majority of people. Capitalism is a miserable failure and we need new workers' parties across the world to bring about real democratic control by ordinary people, and a planned system that can provide for everybody - not the chaos of the free market, that only provokes greed and selfishness, rather than community and tolerance. I am a member of the Socialist Party and believe that there could be a democratic, socialist alternative.

Answer 3

For fontofallwisdom - It's all true, yet it's all better than how the "proletariat" were doing before that. One does not go from abjectly poor rice farmer to wealthy worker in one step. It didn't happen here in America and it won't anywhere else. It takes a few generations. The key is, is the current generation doing better than the one before it.

To the asker, you've gotten some pretty decent answers. I highly recommend you read Capitalism and Freedom by the recently deceased nobel laureate economist Milton Friedman. Your library should have a copy.

Answer 4

Just in the interests of balance...

Capitalism is the process by which those owning the means of production (factories, businesses etc.) known as the bourgeoisie, employ others(the proletariat) to work in their businesses, for the minimum amount that they will work for and take the excess value of their production as personal wealth.
At this precise moment the international proletariat are working 16 hours a day making our computers in none unionised factories or making $50 sneakers that cost $5 to make and they get paid 10 c for. The capitalist importer in the USA that never sees the sneakers gets $20 a pair for transferring some of his money around the world. Decide for yourself if you are in favour

Answer 5

capitalism is an economic environment driven by free markets and the privatization of business and commerce. as a system, it provides tremendous growth and opportunity for individuals and corporations with real and leveraged assets. capitalism also stimulates new economic development and provides a remarkably strong monetary base.

however, because it is market driven, a capitalist economy is vulnerable to dramatic shifts in buyer behaviors. should economic hardship become widespread among a population, a capitalist economy can suffer extreme withdrawals (ie: recession, depression) and vast monetary depletion, delivering exponentially negative consequences not only within the markets but society as a whole.

Answer 6

Capitalism as i understand it involves minimum financial input with maximum financial reward at the end. Thus the system makes some VERY rich whilst others are made to remain poor for the system.

For example the owner of the Mcdonalds fast food restaurants must be very rich but the people who actually work at the restaurants get paid very little and also the food sold is very low standard and cheap to produce but sold at much higher price to ensure a profit - for the Mcdonald corporation; the owners, share holders and workers.

Answer 7

Capitalism is the way we live at the moment. Basically to be successful you need to try and earn money by doing so you can pull yourself up the social ladder. The 'opposite' to capitalism is communism, where everyone is equal no matter how hard they work or don't. They get paid the same, live in the same houses and live the same lives. This generally means heavier policing but makes the government much easier to run as it's easy to work out your income.

Capitalism makes people strive for what they want to achieve, it's why people go to college and university, it's why people work hard in their jobs to get a pay rise so they can buy a new sofa. However, it also mans that dregs of society exist, homeless people and people who can't be bothered to help themselves. Also it means that there are financial risks involved with everything you do.

Personally I'm pro, good luck with the essay, kid!

Answer 8

The USA is considered a capitalist society, the UK is considered a mixed economy as far as Economic systems go. You need to define a capitalist system by how it considers land, labour, capital & enterprise when dealing with the main economic problem of scarcity and allocation of scarce products. 'The main economic problem'

Each system answers three main questions what to produce, how to produce it and for whom to produce. Capitalism is guided by consumer soverienty........etc........people have choice what to buy, monopolies and specialization exists........very little Govt involvement as far as this system model goes....no free healthcare, no govt benefits to the poorer in society....to emthasize this briefly summarise a command society.(socialism such as the old soviet union or czech).........drawbacks include poverty, everything as a price etc etc..........it's all in most economic texts books. Best of luck

Answer 9

Capitalism is awesome dude. It speeds growth wickedly fast. People like money, a lot. Capitalism uses that greed to the benefit of everyone. When money's involved, people will invest and work extremely hard to be the first to cure diseases and create new technologies. Without motivation like that, people wouldn't work so hard. It's a beautiful thing.

Answer 10

Oh for goodness sake. Go back to your tutor and confess that you haven't listened to any of your classes or read any of your textbooks. Failing that, start doing some research. Here's a clue:- most Western societies (UK, USA etc) are capitalist economies. The old USSR wasn't.