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.
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2 comments:

  1. Paradigm time with EstherApril 15, 2012 at 10:41 AM

    Nice blog. Valid and organized arguments. It disappoints me to see how greediness could pollute capitalism

    ReplyDelete
  2. Swaggology Of SociologyApril 15, 2012 at 7:21 PM

    I like the pic, and the way you set up your pros and cons.

    ReplyDelete

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