What is Capitalism, How Successful it is ?
The word capitalism comes from the word capital which means money or any type of well whether a person have houses, Car or land are considered as capital capitalism is a society where from “each according to his ability; to each according to his capital”.
A society where every person works according to his ability but they get return according to their capital. The person with the most capital gets the most profit.
Capitalism is an ideology that promotes privatization where the means of production like land feel factories and industries are owned by private individuals.
Broadly looking at capitalism there are some very common type of capitalism which is seen in a very society and these types of Privatization, Monopoly, Less Government Interference, Free Market and Competition, but now question arises that capitalism has improved the world or have destroyed it.
Optimistic View of Capitalism
The largest successful idea of capitalism is decentralization. In capitalist countries everyone has the freedom to start their own business and every year there are many new businesses starting up. These businesses work independently from each other, it means that they are decentralized in fact they compete with each other which leads to innovation.
When these numerous decentralized businesses and capitalism work independently they will also compete with each other to better themselves they get a financial incentive here: the profit; And on this property the businesses would want to work better than their competition which until leads to innovation.
So, capitalism provides the financial innovation that figure is Innovation and because of innovation in the last 100-200 years we have seen a level of technological development that we have not seen in 2000 years of human history.
People who support capitalism have said that because of it in the last fifty years it has fallen globally the education level has risen and the living standard of people has improved.
Pessimistic view of capitalism
There are so many benefits does not mean that it will not destroy us. The first period of capitalism is Monopoly and income inequality. It's true that capitalization has decentralization that you have freedom to start a business.
But realistically what happened is that this is more among themselves large businesses that take over smaller businesses. It is possible here that one business may buy out all its competition and the come only one company if there is no more competition and one company rules the entire sector it is termed as monopoly.
Today the companies termed monopolies have become so, by acquiring other companies and this whole system creates inequality where rich people and which companies have all the wealth and the small businesses cannot compete with them in reality.
Optimistic View of Capitalism
The largest successful idea of capitalism is decentralization. In capitalist countries everyone has the freedom to start their own business and every year there are many new businesses starting up. These businesses work independently from each other, it means that they are decentralized in fact they compete with each other which leads to innovation.
When these numerous decentralized businesses and capitalism work independently they will also compete with each other to better themselves they get a financial incentive here: the profit; And on this property the businesses would want to work better than their competition which until leads to innovation.
So, capitalism provides the financial innovation that figure is Innovation and because of innovation in the last 100-200 years we have seen a level of technological development that we have not seen in 2000 years of human history.
People who support capitalism have said that because of it in the last fifty years it has fallen globally the education level has risen and the living standard of people has improved.
Pessimistic view of capitalism
There are so many benefits does not mean that it will not destroy us. The first period of capitalism is Monopoly and income inequality. It's true that capitalization has decentralization that you have freedom to start a business.
But realistically what happened is that this is more among themselves large businesses that take over smaller businesses. It is possible here that one business may buy out all its competition and the come only one company if there is no more competition and one company rules the entire sector it is termed as monopoly.
Today the companies termed monopolies have become so, by acquiring other companies and this whole system creates inequality where rich people and which companies have all the wealth and the small businesses cannot compete with them in reality.
Another very negative effect of capitalism is seen on the environment: the nature around us has been affected as we are moving towards a capitalist society.
Conclusion
But in general capitalism has a better record but the failure of the system this ideology is seen when companies get so huge and have so much wealth that they become more powerful than the government in such cases these companies can write the government or buy out the government and even help in manipulating the elections.
Companies are concerned with their profits only so capitalism has both positive and negative impacts but these impacts depend on the citizens as we are the ones who have promoted capitalism to such an extent that it is now affecting us and our surroundings only.
Conclusion
But in general capitalism has a better record but the failure of the system this ideology is seen when companies get so huge and have so much wealth that they become more powerful than the government in such cases these companies can write the government or buy out the government and even help in manipulating the elections.
Companies are concerned with their profits only so capitalism has both positive and negative impacts but these impacts depend on the citizens as we are the ones who have promoted capitalism to such an extent that it is now affecting us and our surroundings only.
Written By - Vanshu Verma
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