Is there such a thing as Bad Capitalism?

Question

If so what does it look like and how does it operate?

I'm looking for thoughtful answers so be as detailed as possible.

Does America have any forms of bad Capitalism in your opinion?

Ducky..... I've read 'the Jungle" and I agree.

Answer 1

kids working in sweatshops with no safety oversight... like in SE Asia...

it's really unbridled capitalism... no government oversight of age, safety or anything...

and to your second question... the only thing stopping child sweatshops and unsafe labor practices is the government and unions... so much of capitalism in the U.S. is fairly regulated and relatively productive...

granted, there are still a few things... like at times a do anything for profit attitude where companies move to Mexico or China... but that's not really in America anymore at that point...

Answer 2

When the companies' only concern is profit, rather than being a good corporate (Or other form) of citizen, that would be a bad form of capitalism. I certainly am not suggesting that companies should not be trying to make a good profit. That would defeat the purpose. But when all they do is try to make as much profit as possible, without looking at the overall effect of doing so, then the results on those around them can be negative. Look at how many once thriving communities have withered and died because the companies that once sustained them have left for greener pastures. Look at how many people around the world are toiling for wages that do not pay the bills. Look at what is done to the environment rather than spend the extra it would take to make products in a cleaner way. If people and businesses would be happy with making enough money, rather than as much as possible, then capitalism would be better.

Answer 3

That depends on your definition of bad. Capitalism is the best way for consumers and producers to efficiently come together to satisfy both parties. However, it does sometimes produce some things some people would consider bad. For instance many conservatives consider pornography to be sinful... yet there is great demand, and conversly supply of pornography in capitalistic societies because of the capitalist system. In that way, some may say that other systems, such as state directed systems would be better at producing virtue becasue an all powerful state directed economy could easily forbid the production of such materials. If this was to happen though, the illegal black market would emerge, and inefficiently meet the demand for such materials... as is the case for everything prohibited in capitalists societies... such as illegal drugs, prostitution, etc. So, it's like Obi-Wan Kenobi said in Return of the Jedi, "...you're going to find that many of the truths we cling to depend greatly on our own point of view".

Answer 4

Well, certainly Enron fits the bill. Their gaming of the power system cost people billions for no more electricity.

I think any company that gets a gov't franchise or monopoly unnecessarily is bad capitalism. It stifles competition and improvements. Just look at your local cable company as an example.

Microsoft in the late 90's would also be an example. They used their near monopoly on operating systems to make the landscape very difficult for companies offering competing Office and browser products.

But for the most part, Capitalism is good. As long as they don't do anything to limit competition, it usually provides a service to us all.

Answer 5

I think all capitalism has good aspects and bad aspects.

The good ones are that it encourages innovation and creates a stable economic system.

The bad is that it tends to rely on and reward greed. Capitalism is all about making the most money, and so some people will resort to immoral practices to maximize their profits. For example, moving their production to third world companies to exploit the cheap labor and loose labor laws. Or in the case of companies like Wal-Mart, underpricing until they drive the opposition out of business in an effort to create a monopoly. Or damaging the environment to produce a product for less money.

Basically the problem with all capitalism is that it's based on greed. So it has good and bad aspects.

Answer 6

Giant corporations are generally a good example of bad capitalism. They buy up competitors and squeeze choice right out of the marketplace. Look at Wal-Mart, they kill many local businesses that have existed for years before they moved into an area. Communication companies, oil companies and generally all huge corporations do nothing but drive prices up while stifling competition. Pay goes down, benefits are lost and workers have two choices, the company way or the highway. People like to blame it on unions and their benefits but unions were started to stop exactly what is going on today. Jobs going overseas to cheap labor, illegal labor and monopolies where the owners were referred to as "robber barons". Companies always complain about their costs but it doesn't seem to stop them from paying their CEO's tens of millions of dollars per year. Here is an interesting article to prove my point, enjoy. http://abcnews.go.com/GMA/story?id=1841989&GMA=true

Answer 7

One of the many forms of Bad Capitalism looks like kind of like Microsoft. Bad capitalism can operate as a monopoly. Customer service suffers (they release Vista without cleaning up bugs) and you pay more for the "privilege" of using their product because they are the only supplier.

Answer 8

is there such a thing like a good capitalism?
the desire to make profit at the cost of the whole is the same kind of as the desire of the cancer cell to grow at the cost of the whole body. so this system of money is like cancer. its is growing at the cost of the whole society. society means common wealth, but not loosing individuality. the heart is not loosing ndividuality by delivering fresh blood to the whole body. whom does the air or the sunshine belong to? it belongs to all. so many other things, too make sense only, if they stay in the flow. if certain substances in the body fall out of this flow, you get a thrombosis or like that. so better stay in the flow. give and get and do not keep back anything which is originally there for everyone. will there be any money in heaven? certainly NOT!

Answer 9

Yes. When a company owns everything, that is bad. Listen to the song "16 tons" to get an idea of what I am taking about. Capitalism gone wild is the reason for the rise of unions. Anything extreme in bad in my opinion.

Answer 10

I'm a firm believer in capitalism. However there is good and bad capitalism. To me true capitalism is when companies are allowed to be competitive and still remain small. Evil capitalism is when large monopolies are created and as a result, they wipe out everything else.

Capitalism works, if it's permitted to work like it's supposed to. :)