Why must join to Capitalism?

Why must join to capitalism?

Capitalism or Capital is an economic system in which trade, industry and means of production are controlled by private owners with the aim of making profits in a market economy. The capital owner can do his business to get the maximum profit. For the sake of this principle, the government cannot intervene in the market for mutual benefit, but government intervention is carried out on a large scale for personal interests.

The forms of capitalism are trade capitalism where employers transport production from one place to another according to market needs; industrial capitalism, that is, it separates capital and labor and human beings from machines; a cartel system, where large companies agree on the distribution of international markets; and, the trust system, which is a merger between large companies competing with the aim of controlling and dominating the market.

The main characteristics of this ideology are as follows. Cannot grow and develop without usury and monopoly; the accumulation of wealth in the hands of the owner of the capital and the relative depreciation of ownership by the workers; give rise to colonialism whatever its form; profits multiply and are inefficient, giving rise to social and social inequalities; materialism, atheism and secularism which reject religion; strongly emphasizing private property and rejecting the principle "equally equal taste. So the conclusion, if a country adheres to a capitalist system, can give some positive influence, namely a high level of efficiency in a country with such ideology, high creativity and innovation, rapid economic growth, the existence of a decentralized system, and more attention from consumers.

If Indonesia adopts a capitalist system, then it can get some changes which affect the economic development in this country. Judging from the accuracy of the use or utilization of any existing production factors. With this increase in efficiency, the profits derived from economic activities will also increase. In this capitalist system, there is a policy that is applying a certain tax rate for each private company. This income from the tax sector is used as one of the capital to achieve national development goals. Tax rates also vary, both in the form of taxes on fixed capital such as land and taxes on labor. As stated earlier, individual freedom in the ideology of capitalism is upheld. this is one of the advantages of using the ideology of capitalism in the life of the nation and state. With the guarantee of this individual freedom, every citizen can freely express his opinion.

Freedom of opinion must remain in accordance with the principle of expressing opinions in public in his country. Now, because of this freedom, every creativity and innovation that is owned by citizens can develop well because it is supported by the right environment. One indicator of state progress is the level of innovation and creativity of its citizens.

The advantage of the capitalist ideology which is the next is very rapid economic growth. Private sector control over economic activities makes competition between them increasingly high so that economic activity becomes very passionate. This is what signifies economic growth.

In regional autonomy, we usually find the principle of decentralization. Who would have thought if this system actually came from the application of the ideology of capitalism. Decentralization can be understood as the transfer of authority from larger structures to smaller structures. By using this system, the performance of each production structure will be more effective and efficient. This advantage is expected to increase profits or profits obtained by business people so that the state also has a positive impact.

The advantage of the capitalist ideology that we discussed last time is that the consumer is more concerned. Capitalism is considered here by producers and government. The government as a protector of the people must also have an obligation to guarantee consumer rights through all the laws and regulations. On the other hand, consumers are so important for industry players considering that without consumers or customers, of course the economic chain does not work perfectly. Therefore, every producer competes to meet the needs of consumers and keeps consumers subscribed to these producers.

In addition to having advantages, of course the ideology of capitalism also has shortcomings that make it not used by certain countries. With these shortcomings, of course we also realize that the ideology of capitalism is not a perfect ideology considering it is the result of human thought. That is, the absence of a perfect competition market, economic activities focus only on profits, not even distribution of wealth, and the emergence of secularism ideology. Hopefully this Indonesian economy can take place appropriately in the right way and can have a positive influence on the community.

BY JESSICA XIIA4 / 22