Hey Bloggers, our Blog for this week is on Capitalism, it's pros and cons. Well why don't we start by defining what that is. Capitalism is the organisation of society in a way that the both the wealth and means of production are privately owned by capitalists (business owners etc), where products and assets are produced for profit. In capitalism, according to Weber, the workers are free to sell their labor for profit. Marx however believed that in Capitalism, the proletariat are exploited by the bourgeoisie, and makes profits off of them.
The greatest benefit of Capitalism is that it Promotes economic growth, because of competition in the open markets (wall street/stock market). Individuals have more business options. It allows for little guys (working class) to move up in social rankings, or get promotions. It basically makes upward mobility easier. in a capitalist economy that hard work is rewarded. Another benefit is that consumers get the highest quality of products for the cheapest prices. The reason being is that because of the competition of the open markets, business owners have to be smart about their prices, if they want people to buy their products.
The greatest benefit of capitalism is also its greatest drawback, Competition doesn't always bring out the best in people. Some may take it to far, and use "questionable" tactics when dealing with opponents.
Commendable reference of a sociologist theorist. i like Weber theory. You should be quoted on "the greatest benefit of capitalism is also its greatest drawback." Great blog.
ReplyDeleteOne of my close friends Adam Smith is very fond of this idea of Capitalism. I think you should read his book the Wealth of Nations so you you can really see why the drawbacks you speak of are indeed beneficial. Self-interst, though it may seem selfish, is the driving force of the market economy. The idea and successes of the capitalistic system are evident in history; Great Britain and most importantly the United States have thrived as economic superpowers. Though the idea of a market free of government intervention is hard to come around i believe capitalism is a successful system. Many times a capitalists greed is what calls for government intervention. And, government intervention is what can cause drawbacks in the system. This paradox is the main issue of capitalism
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