Does capitalism have any drawbacks?
Responsible Capitalism under a strong democratic government of the people is a good system. This is the system in the EU. But since the early 20th century, the corporation in the US began accruing the same rights and legal status as individuals, and through the Federal Reserve’s actions (which has eliminated competition by creating monopolies and huge cartels with homogeneous political goals), a corrupt lobbying system and inequitable election campaign funding, they have been able to subjugate our democracy to the point where our elected representatives no longer represent the will of the people that actually elect them to office, but in fact represent the will of the corporation. The corporations are now more powerful than our own government and therefore are in control. We no longer have a democracy, but a corporatocracy. We were warned about this over 200 years ago: “If the American people ever allow private banks to control the issuance of their currency, first by inflation and the
Yes. 1.) Capitalism inherently concentrates wealth and power in the hands of a relatively small minority. This has to constantly be monitored and checked, else social revolution will happen. 2.) Capitalism values economic productivity, and those who aren’t able, for any reason, to economically produce are undervalued by society. As such, no provision is made for their care. 3.) Pure capitalism rewards and encourages unethical behavior, as the main goal is the accumulation of wealth (aka: capital). 4.) The eventual end of any successful capitalist market competitor is a monopoly of the market (in pure capitalism). This is ultimately self-destructive, as it ends market competition and competitive pricing. Thus, capitalism must be checked (rules against monopolies are the result of this) in order to perpetuate itself. Otherwise, it will self-destruct. These are just a few off of the top of my head.
Yes. There isn’t any economic system that doesn’t. . In capitalism, the biggest drawback is that the cost of labor is not — in principle — distinguished from the cost of any other factor of production. . The idea is that resources are scarce and that the best way to determine where scare resources ought to go is to let free individuals, trading in a private market, bid on those resources. It is assumed that the person who bids the most is the person who can make the most productive use of that particular resource. . The formal way of saying it is that private markets allocate scarce resources to their highest valued use. . The principal justification for that is the incredible power that private sector markets have in tapping individual creativity. I may know that I can use that ton of copper to make things I can then sell for $10,000. So I’m willing to pay $9,500. . You may have an idea that I never even thought of that will allow you to make things out of that same ton of copper th
