The benefits and shortcomings of a capitalist economy

The benefits and shortcomings of a capitalist economy
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The benefits and shortcomings of a capitalist economy
A capitalist economy is an economy in which a person has all rights to invest money, to buy and sell goods, to do business, without any restrictions from the state. It is based on the private ownership of the means of production of goods and services for profit. It is one of is one of the many important ways that an economy can be organized. It is a form of market economy where production and investment are privately controlled, and any work of production is carried out by the employees (Lenin). Human energy in the form of labor is labor and human expression in the form of the desire capitalism is one of the greatest ways that an economy can be organized and provides long lasting benefits to all the people in the society, a country or an economic area. On the other hand, capitalism can have some shortcomings as any other form of economy. The basic thing is to focus on the positive side of the economy and try to substitute it with other good of different economies so as to ensure that all the people are thriving towards economic stability. One of the common questions is the problems and the shortcomings of capitalism economy. Capitalism like any other form of economy has shortcomings (Lenin). Some of them include;
Inequality
The benefits of capitalism though many of them are rarely equitably distributed. Wealth accumulated by only a small group of people hence the demand of the luxury goods often limited to have a different problem to the whole percentage of the workforce. There are those who will maximize the benefit of capitalist economy and continue to grow richer while the other class will continue to be poor and poorer.
Immobility
Putting in mind that capitalist, in other words, define a free market economy, factors of production are supposed to be able to easily move from unprofitable sector to a new profitable industry. In the real since this is always difficult. A person who becomes unemployed cannot just fly or move to another city to seek for employment. A capitalist society then sees long periods of unemployment and joblessness.
Monopoly behavior
Capitalism, as stated earlier, sees a certain class becomes richer while other classes remain poor. This can be explained in other words as a boost to monopoly. Some firms, due to capitalism will monopolize the production, management of certain goods, marketing, selling and buying of goods and services and this exploits the customers through charging of higher prices. Firms gets monopoly power and ends up paying lower wages to their employees.
Capitalism is based on psychological model which is fundamentally flawed. It disrupt the tradition of human interaction thus bringing, "spiritual poverty", because it devastate the original cultures and knowledge. People tend to think of profit and wealth more than other fundamentals of any society. As people accumulate wealth and profit dominates the society, all the other factors get suppressed. Some activities maybe financially productive, but destructive when looked at on a social perspective. Issues like love, unity sharing, and honesty are some of ethics that are universally encouraged in any social setup, but in a motive of accumulating wealth and trial to strive financially, sharing, conducting business in a genuine manner even to the competitors and rivals will obviously be overlooked upon.
A capitalist economy, again, stems up over consumption. This maybe out of some individuals` frustration and organizations greed. People acting as individual consumptive units en up eroding the social fabric, damaging some of the earlier strong relationships and increase depression.
Although human neurasthenic transformation is evident among the stars of modern capitalism, the sole beneficiary of this system of capitalism are the rich who always remain immune to any shock or awe of the modern capitalism. They behave in a very rational style within the logical parameter of profit making. When the superrich are not enjoying the holidays or vacations, they spend time planning on how to extracts more from the people e.g. by forced labor and slavery.
However, there are concepts that one must think, practice, and express in order to change everyday life in a capitalist commodity economy (Kawashima, Ken 2009). Modern capitalism has a powerful effect of turning people to development even before they get to good and established civilized societies with codified legal systems. Modern civilization has pillaged all human civilization progress, leaving societies ruled by the law of profit controlled by a small group of the elites. On exploring the contours of capitalism, it goes beyond the exploration of surplus labor to work directly on human perception and attention.
Political invasion of the body leaves humans weaker and weaker. The more people demand from the political sphere, the more extractive human surplus neuron-political capital is sucked from the people. The more masses consume from the political system, the more their personal urges, and personal dreams are substituted for refilled, homogenized Eros.
However, capitalism has increasingly and can continually do this. There are a large number of people with great needs and who are stuck in poverty. Who are stuck in some dangerous diseases`? Government and other non-governmental organizations have the role of helping all those in need, but i8f they try to do this by themselves, it might take ages. It is the corporations which have the skills and technological innovation work for the poor. To make more of these skills, there comes the need of capitalism. There are a lot of things that need to be done and now more importantly with creative capitalism, there is a great chance for acquiring a change in lifestyle. Some corporations are identifying new brand new markets to help the poor. Capitalism hence when thought about as a way of answering vital questions that remain unanswered in the societies, political fields and in lifestyle. It is supposed to be thought of as a long-term economic cycle as opposed to short term economic cycle. It should be viewed as a good response to long term fact which many people miss out when it comes to century long improvement, development and change in the quality of life. In a world full of challenges and poverty, capitalism harness self-interest in a helpful and a sustainable way but only to those who can be able to pay....