The Truth of Capitalism

Elizabeth Valerie Raing

XIIA4-14

“The earth provides enough to satisfy people's needs, not all greed.” By Adolf Hitler

Capitalism is an economic and political system in which a country's trade and industry are controlled  by private owners for profit, rather than by the state. According to capitalism figure Adam Smith, human are greedy creatures and always want more.

The ideology of capitalism makes people have to divide social groups based on caste. this causes a social gap between bourgeois society and the poor. This phenomenon usually can be seen in "Third World". 

I really don’t agree with capitalism cause first of all capitalism profits before people.  Prior to industrialization you desperately needed people for any kind of power, so the elites had certain responsibilities toward the people if they wanted to maintain power. Workers may be exploited for the benefit of the wealthier capitalists. Social benefit ignored. A free market will ignore the look. A profit maximising capitalist firm is likely to ignore negative externalities, such as pollution from production; this can harm living standards. Similarly, a free market economy will under-provide goods with positive externalities, such as health, public transport and education. This leads to an inefficient allocation of resources. Even supporters of capitalism will admit that government provision of certain public goods and public services is essential to maximise the potential of a capitalist society.

What really made capitalism dominant were technological advances combined with cultural changes that enabled private investors to have much more power over the economy than ever before. Because the existing technology makes capitalism more rampant, making rich people more happy because there is less cost to produce a lot of goods. but they do not think that because of their actions there will be more and more unemployment when there are many increasing needs as well as prices. and workers who are increasingly upset because they often do not respect the work of the workers by dismissing them without giving severance pay. but actually technology also gives some relief but for others it might be the end of their job career.

But in several thing capitalism is really good for a developing nation cause capitalism usually very efficient. Firms in a capitalist based society face incentives to be efficient and produce goods which are in demand. These incentives create the pressures to cut costs and avoid waste. And capitalism can make the economic growth and high degree of citizen autonomy with firms and individuals facing incentives to be innovative and work hard this creates a climate of innovation and economic expansion. This increased wealth, enables a higher standard of living; in theory, everyone can benefit from this increased wealth, and there is a ‘trickle down effect‘ from rich to poor.

Capitalism provides people with the freedom to do nearly everything they please. When it comes to institutions, food, and many other goods, there are so many options to choose from. Since capitalism causes innovation, it would make sense that there would be a wide range of goods to choose from in the marketplace. This allows individuals the freedom to buy what they want, go to the institutions they want, and live the lives they desire without government intervention.

There are some things we have to pass on to the next generation, how capitalism can make our country better if we use it well and wisely, it will also be better to abandon the bad ideology of capitalism which makes us lose our sense of humanity. Capitalism can make developing countries become more advanced by developing the next generation into generations who have the spirit of hard work and continue to innovate with all the situations that occur around them. They also have to have a sense of responsibility towards the surrounding environment, not to get their profits causing pollution which has very bad effects on the surrounding environment.

We bear the enormous responsibility to pass this to the next generation. Because if we are not who else and if we do not make changes to the capitalist system in this country now then forever this country will become a capitalist country.