Explain The Flaws Of Capitalism

Farida Ghanizada

Political Economy

Professor: Chris Rickleton, Diana Durusbek

Date: 24/4/2015

Flaws of Capitalism

Is Capitalism a curse, or brings prosperity and economic growth for a country? Capitalism is rapidly taking over other economic systems throughout the world. It started in the mid of 19th century after the industrial revolution. Two Economic systems Capitalism and Socialism were fighting against each other to take over the countries and the minds of people, where finally capitalism was the winner. Capitalism can be defined as an economic system by private or corporate ownership, investments that are determined by private decision, and by production, prices, and the distribution of goods and services that are determined by competition

These different types of capitalism differ from each other. In one country one type of it works better than the other one depending on the political system of the particular country. There are lots of debates among political economists whether this system is better or worse, whether it takes us toward prosperity or leave us with so many problems. We have economist who argues that it is the best economic system and on the other side some argue that it has so many problems which we cannot call it a good economic system. Here comes another question whether capitalism has all these problems or it is the capitalists who are misusing from the system. We can argue that there are problems with the capitalism itself which opens the gap for the capitalists to misuse from the system. Among so many disadvantages of capitalism,

Since the Industrial Revolution, two main economic systems have developed; these are capitalism and socialism. Both of these systems have its pros and cons. Adam Smith, father of capitalism, bases capitalism some main points like wealth, competition, freedom of enterprise, and profit motive. Capitalism is an economy in which the people are free to engage in any type of business; the government doesn't have any control over the people's destiny. Socialism, on the other hand, is almost the complete opposite of Capitalism. From child labor to low wage and from class division of class to dominating poor people and shaping politics all are flaws of capitalism. In was made in support of private ownership but has ignored the problems of it, and did not consider how badly it will affect the people and