Wednesday, April 11, 2012

Capitalism

Capitalism is a society in such a way that the wealth and means of production are privately owened by capitalists.

Pros:
  • Economic freedom helps political freedom
  • Firms in a capitalist based society face incentives to be efficient and produce goods which are in demand
  • Helps with economic growth
Cons:
  • Monopoly power. Firms with monopoly power can exploit their position to charge higher prices for their products.
  • Social benefits are ignored
  • Inhertied wealth and wealth inequality
  • Societies which are highly unequal create resentment and social division.
  • Dimenishes the Marginal utility of wealth
  • Capitalist economies have a tendency to booms and busts with painful recessions and mass unemployment.

Tuesday, April 3, 2012

Globalization

Globalization refers to the increasingly global relationships Of culture, people, and economic activity. Globalization and new technologies such as the Internet allow widely dispersed memberships for new religious movements and new age movements, without the need for geographical base. Some pros to globalization are People around the world are more connected to each other, information and money flows much faster, Good and services produced in one part of the world is available to all parts of the world, and it helps keeps the economy running smoothly and efficiently. Some cons to globalization are it makes the rich richer and the non-rich poorer, mutinational Corporations are accused of social injustice, many say globalization isn't working for the majority of the world, and many believe business is only run thru rich companies who have made a name for themselves around the world. So many believe we should have globalization and many believe we shouldn't since it's supposedly hurting the majority of the world. My perspective is that globalization is helping the world economically since money is flowing into many countries for products these countries produce, but then again I don't know all the facts laugh out Loud. :D