Capitalism is a political system in which businesses and industries are operated by private owners for the profit motive, rather than society. The production of goods and services depend upon the market demand rather than the planned supply of goods and services. Capitalism is the finest form of free market, also known as laissez-faire. Here, private owners have all the right to where to invest, what and how much to produce or sell, even if the prices of the products are also in the hands of private individuals. Like all coins have two sides, capitalism also has both positive and negative aspects.
On the one hand, the first and the foremost advantage of capitalism is that it stimulates the growth of industrialization, innovation and green revolution. It helps a number of people to increase their living standards and lifts them from poverty. With the rights to hold property and saving their part of income, the rate of capital formation increases since people investing their savings. Capitalism also played a vital role in commercial competition. Nowadays, people have the advantage of buying a number of identical products with low prices and high quality as well.
On the other hand, the disadvantages of capitalism are that there is an inequality in the distribution of income which means that where richer people are becoming richer, poor individuals are becoming poorer. It also has unbalanced growth. It is noticed that during the last few decades, industrial and technological sectors have seen an enormous level of growth as compared to the agriculture sector. It is noticed that in some industries, private companies have a monopoly as they have eliminated small businesses from the market, due to which they are charging high prices from the customers.
To summarise, I opine that there is a bright future for a capitalist economy in the future if the imperfections must be corrected by the assistance of the government, as the market needs so much planning to regulate the economy smoothly and firmly. Undoubtedly, the capitalist market is a free market and it still needs an appropriate mechanism to regulate under different circumstances.
References
Gaille, L. (2018, December 1). 13 Advantages and Disadvantages of Capitalism. Retrieved April 8, 2022, from
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