Capitalism? Yes or No?

As the leader of the country I would like to put my honour on Adam Smith’s concept of capitalism that present “ An inquiry into the Nature and Causes of the Wealth of Nations” It is about basic principles relate to individual liberty as an indispensable ingredient to moral, prosperous, and free society. I agree to put capitalism on economy that tend to show the dynamic atmosphere of competition, innovation, and strategic business. Instead of looking at the unstable economic condition due to capitalism, actually capitalism trigger the development of economy.

First of all, we must know the meaning of capitalism. Based on wikipedia, Capitalism is an economic system based on private ownership of the means of production and their operation for profit. There are two ways to look at capitalism. The first, and most common, is that people in a capitalistic society are working for their own benefit. The second is that every job in a society focused on Capitalism helps someone else in some way. People who manufacture goods can earn a good paycheck while creating something that solves a problem for another person in that society. Goods and services in capitalism are all designed to help someone live a better life.

Renewal technology exist because of freedom given by capitalism to innovator and entepreneur who have made a trial and error for getting sophisticated technology. It is not only shown by sophisticated technology, but also some equipment surrounding, such as rice cooker, washing machine, instant noodle, and matches. Technology and economy will not grow this fast without capitalism eventhough we also know that stabilization will always be the main poin that every single country need to reach.

Although the rich do tend to get richer and the poor tend to stay poor, everyone within a society focused on capitalism does have an initial opportunity to find success. Some may need to work harder at it than others, but there is always an opportunity available at some level. There is one guiding principle: if you work hard, then you have the chance to meet your definition of success.

Governments that intervene in an economic market are doing so for their benefit, not that of the individual. With capitalism, the focus is on the individual. Pricing and supply is driven by demand. People have the freedom to choose the goods and services that best meet their needs instead of being given a limited set of options due to government interference that is intended to preserve the structure of the ruling body. As the government I will keep this capitalism in economy and technology, because I do believe that everyone may have their right to be as success as they could afford and be beneficial for the society with the whole of innovation they made. It doesn’t mean that economy and technology is run without limitation, I will make some regulation to protect the producers and the consumers.

But on the other hand there is a specific focus on money within a society that is based on capitalism. You need money to consume items that are produced. You need to earn money so that you can purchase items that you want to consume. This means more people are driven toward working for an employer than working for themselves. There is a choice to work, but choosing not to work makes it difficult to be a participant in a society that is based on capitalism.

Businesses take the place of the government in a capitalistic society. The business must continue to innovate and reduce costs for it to remain operational. Because the largest expense of most businesses is the labor needed to produce goods and services, the emphasis of capitalism is to eliminate the need for workers instead of creating more needs for them.

Everyone may have their own opportunities to succeed, but without some level of governmental interference, those opportunities can be extremely brief. People who have access to more resources can create more for themselves. At the same time, people with limited access to resources often focus their energy on self-perseverance instead of wealth-building. This creates two basic groups of people: haves and have nots.

Capitalism focus on spiritful individuals. If someone is unable to be productive, either because of injury or disability, then they no longer have an ability to contribute. These individuals get left behind, discarded because they are essentially not necessary to the survival of the society. The focus on capitalism is competitive supply and demand. If you can’t provide a supply and have no resources to be part of the demand, then you’re not needed.

Business will eventually consolidate in a pure form of capitalism until only one provider is available in the market. The goal is to limit competition so the most profits can be obtained by the goods or services being offered. This is called a “monopoly.” When such a circumstance occurs, all the power in the business to consumer relationship lies with the business. They can charge any price for what is being offered and the customer must pay it. In this case as the government tend to make a limitation to the existance of private monopoly. In my opinion, for some goods like water and electricity has to be handled by government for the evenly spread and for avoiding cheating action.

So as the government, to make a healthy competition I tend to hold capitalism but for the sake of country stability I will defend centralization for some regulation that has to be made. This action needs to do for protecting the existance of new generation in the future.

By : Evelyn Gunawan XIIA4-16