Has Capitalism favored or benefited the poor in any way?

Question

I'm in Economics and am currently just wondering if there really are any advantages for the poor under a Capitalistic society. They're always under competition - so I'm just plain wondering. What do you guys think? What are the ways the poor benefit from Capitalism.

Answer 1

The poor are poor under any societal system. Capitalism creates actually more poor (in relative terms). The poor do not benefit from capitalism because capitalism is based on individualism and profit maximization for the rich.

Answer 2

Capitalism does benifit the poor. The premise of capitalism is that each individual is free in his or her economic pursuits. Though an individual acts primarily in his or her own interest, his or her action ends up benifiting the whole country including the poor.

How does this work then? Doent it seem to be conter intuitive? If I am acting on self interest, how can I be helping other people?

Well, Adam Smith explained this as the "invisable hand." In a free market the goods and services that make a lot fo money to produce are the things that are most needed in society at that given time. as prices go up, more people with start producing those goods or services in order to make profits, but as more people chaise these profits, the supply of these goods or services goes up, ultimately lowering the price again and satisfying the demand for these goods in society.

The profit incentive then, automatically alocates productive resources most efficiently to where the they are needed. This is why free marke, capitalistic natiosn are the wealthiest. In the prusit of profits, new technologies are created, ideas flow freely, capital is accumulated, and businesses are created. Al of these things have the effect of creating jobs, raising wages and producing new goods and services for consumption. So even though there may be more inequality i a capitalistic society, it is far wealthier then a state controled economic system, and even the poor are better off then their conterparts in other economic models. Poor peopel int he US were far better off then the average person living in the Soviet Union. The reason for this was capitalism and free markets.

People who make the arguement that capitalism is all about greed and therefore it cant possibly help the poor dont understand basic supply and demand theory. They dont reallize that it is the personal pursuit of profits that by default creates wealth and a higher standard of living for a country whlile at the same time perserving personal freedom.

In a capitalist society, if someone becomes rich (assuming is done so leagally), it is because he or she has produced a good or service that has helped the masses either dirrectky or indirrectly. For example:

John Rockeffeller -- provided low cost oil products to the masses, revolutionizing the livelyhood of the entire country

Sam Walton -- created wal mart and brough low cos goods that everyone needs to the masses

Bill gates -- created software the revolutionized the economy and borugh higher paying jobs and enhanced the flow of information and knowledge tot he masses

In a stae controled economy, the masses are kept poor and the rich are those that are polittically connected, not those that have produced for society.

Look at this link that is called the "Index of Economic Freedom" Basically the nations with the most free markets (determined by a number of categories) are the ones that are the most wealthy and have the highest standard of living.

http://www.heritage.org/research/features/index/countries.cfm

Answer 3

The poor in rich countries live better than almost everybody in poor countries and capitalism makes countries rich. All of the illegal immigrants are coming here because compared to Mexico being poor in the US seems like a good life.