Capitalism Essay Example

Capitalism is an economic system in which the country's industry, trade as well as profit are controlled and managed by private sectors. That is to say; private entities own factors of production such as the capital, natural resources, labor and the entrepreneurship. As an alternative, some people who have invested their time and power should control the manufacturing firm. Nevertheless, that is not the case in most countries who practice capitalism (Galbraith). However, slavery and capitalism have no relationship in this case. Most of the countries in the world practice capitalism including the United States alongside other nations. Notwithstanding, capitalism is not the only economic system in a given country, instead of some state practice communism or even socialism.

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To some extent, capitalism is the solution to the needs of the many. The fact that owners control the factors of production and also gain income directly from their ownership give them a chance to drive their firms more effectively (Kotler). On the other hand, they are in place to adopt the trending incentives in the market so maximum profits. Also, capitalism systems require a free economy to achieve more in the business. Most noteworthy, most of the private entities supply goods as well as services based on the laws of supply and demand (Kotler). Subsequently, the public gets good and services based on their needs. Nevertheless, as the demand increases, so do the price also increases.

For the case of corporations, the ownership and management of the company depend on the number of the shareholders. Moreover, the shareholders are the one who selects the board of directors to manage the firm on their behalf. In contrary, as the supply increases, the price decreases. Competition among private entities keeps the price of good affordable while the production remains efficient (Kotler). Besides, capitalism is characterized by a free operation. Subsequently, the companies offer the variety of quality goods and services to the public at a reasonable price. That is to say, the law of demand and supply set fair price especially for the case of bonds, stocks, derivatives, currency and other commodities.

Moreover, capital markets in the capitalist economic systems give the owners chance to raise enough funds for expanding their production. According to Laissez-faire economic theory, the government should only intervene in capitalism when maintaining a level playing field. That is to say; it should protect the free markets against biased advantages gained by monopolies. Additionally, the government should avert manipulation of information, ensuring that it's distributed justifiably (Kotler). Last but not least, they should also maintain infrastructure.

In contrary to the above-mentioned, capitalism is an immoral system that calls for replacement. To begin with, capitalism has two classes of economic agents that is the capitalist and the workers. Workers execute the labor to create wealth while the capitalist holds capital, land, houses and beyond. This is because capitalism is an arrangement whereby those who have the money exploit those who are not in place to raise some amount (Hull 155-174). Those who hold the capital are referred to as capitalist while those who do not have been designated as workers. Capitalists continue enjoying the profits while the workers continue suffering.

Most noteworthy, the capitalist employ the workers to do job adding value to the production. The workers receive payment as a form of compensation. However, the payment is of less value than the value of work done (Hull 155-174). For this reason, the capitalist gain more profit because they are the ones who hold the factors of production. Following this, such companies grow rapidly, and the owners become wealthy while maintaining the worker's hostage. Because the capitalist has power on their side, they see no any importance of rewarding the workers equitably. As well, since the workers have no otherwise, they are forced by the circumstances to accept the deal for their survival. Based on the above aspects, most of the people consider capitalism profoundly immoral (Hull 155-174).

The idea of capitalism has both advantages and disadvantages. Some people are for capitalism while other oppose the aspect. On the positive side, capitalism set best and fair prices for goods and services since set prices are highly dependent on the supply and demand at that particular time. For this reason, most of the competitors keep their goods and services efficient and quality to increase the profit margins. Besides, capitalism acts as an internal reward for innovations. Upcoming innovations lead to the production of new products (Galbraith).

Nonetheless, other people oppose the aspect of capitalism. They refer to it as inhumane, unsustainable, anti-democratic and also exploitative (Hull 155-174). Subsequently, it must be dismantled and replaced with other economic systems that favor the public interest. The way capitalist holds power over the workers in the workstation is seen as an odd to democracy. As well, capitalism is viewed as a system that dehumanizes workers. The anti-capitalist compare this economic system to slavery, a way to harm the workers, degrading them to a level of an accessory of a machine and beyond (Hull 155-174). Generally speaking, capitalism involves an explosion of laborers as long as the capitalist can attain higher profits.

Works Cited

Galbraith, John. American capitalism: The concept of countervailing power. Routledge, 2017.

Hull, Gary. "Antitrust is Immoral." Abolition of Antitrust. Routledge, 2017. 155-174.

Kotler, Philip. Confronting capitalism: real solutions for a troubled economic system. Amacom, 2015.