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The Pros And Cons Of Capitalism As An Economic System

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This essay proposes to look at capitalism as an economic system and how it has ultimately become a leading economic system in modern times. In order to answer the question as to why capitalism is the dominant system, numerous benefits of capitalism such as stimulating entrepreneurship and expanding competition, production and economic freedom will be discussed. Capitalism, however, is not a perfect system and can still be enhanced to achieve even greater success. Therefore, this essay further aims to look at solutions of how accountants can effectively utilise their skills in order to rectify the minor problems which occur in a capitalist society.

Capitalism refers to an economy whereby the citizens and private sector own and control the factors of productions (Amadeo, 2017). The involvement of government is limited in this economic system and government mainly acts to ensure peaceful …show more content…

The growth of businesses ultimately results in greater competition between these companies (Halleen, 2017). The enhanced competition requires businesses to look for new production methods and technology in order to maintain a competitive advantage. The nature of this competition therefore allows for continuous development of new products, services and manufacturing technology. An economic system such as communism does not possess such traits as resources are provided by the government to ensure equality and this makes citizens complacent and unwilling to develop further as it provides no benefit to themselves. This is contrasted by the benefit of capitalism as it creates a desire of individuals to not remain stagnant but to innovate as time passes. Innovation is necessary in an economic system as it ensures that processes and resource allocations become more streamlined as environmental and political conditions adapt to changing

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Capitalism is an economic system in which capital goods are owned by private individuals or businesses. The production of goods and services is based on supply and demand in the general market. The purest form of capitalism is free market or laissez-faire capitalism, where private individuals are completely unrestrained in determining where to invest, what to produce or sell, and at which prices to exchange goods and services, operating without check or controls. Most modern countries practice a mixed capitalist system of some sort that includes government regulation of business and industry. How capitalism works is simply one process by which the problems of economic production and resource distribution might be resolved.

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Depending on who you ask, you may get different responses to capitalism. A socialist or communist will more than likely condemn it, whereas a capitalist will praise its values. However, ask all three the question is capitalism exploitive and they will say yes. It is a well-known fact that exploitation is one of the main features of capitalism. This is evident throughout history, where the people at the top exploited the labourers to make a better profit.

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Unregulated capitalism is not beneficial for the US because workers were paid low wages. According to the Senator Leland Stanford interview May 4, 1887 it states “The great majority of mankind do not originate employments for themselves, They either have not the disposition, or the ability to so originate and direct their own employment.” This means that the workers had to work for the wealthy people and they don’t even get paid a lot for all of the hard work they have done. Another negative aspect of unregulated capitalism is that a lot of companies are robber barons and trick their customers. According to the evolution of the robber baron article it states “He swoops down from his office by obtaining control of this or that railroad company.”

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Is Capitalism Good for the United States? Before capitalism was the prominent economic system in the United States, the colonists were accustomed to a system known as, Mercantilism. According to Edward W. Ryan, author of In the Words of Adam Smith, “the goal of Mercantilism was to build up the economic power of a nation and thereby enhance its military and economic prowess.”

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Thanks to capitalism there is no more laziness. It forces all to work, because ‘to work’ equals ‘to live’. Capitalism broke(s) the system of Middle Ages and even more developed industrialization. Industry makes people’s job easier and number of produced stuffs has increased. Some may ask’ why they call for revolution, if the bourgeoisie is not

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So far, capitalism society accomplished the most remarkable growth in material civilization among all the economic structures humanity ever experienced. Individuals under capitalist system gave full play to their personal desires without any suppressing, and they engaged in lively economic activities in every sector of society. Accordingly, full blown competition between individuals has started, and this opportunity opened up all sorts of possibilities. Under these circumstances, people who didn’t adjust to the rapidly changing business environment and trend were wiped

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Marxism is a socio-political ideology proposed by Karl Marx main ideology of Marxism is that the wealth has to be equally divided among the society for that Co-operative company instead of corporate company 's can be accepted that means the wealth collected or gained by the company is not targeted towards the owner of the company instead it is divided equally among all the co-operative. Marx explains history in terms of class struggles. Basically 'the haves and 'have not’s '. For Marx this class struggle is a natural process. Conflicts are usually resolved in the long run even if these conflict results in violence.

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According to Marx, capitalism does not work because the working class people, the proletariat, who are ultimately responsible for the production of goods do not reap the benefits, but are rather exploited by the bourgeoisie. This is why communism requires that people pool their labor in order to collectively own the means of production as well as the products. Marx asserts that the very drive to production that characterizes capitalism results in it burning itself out: in order for capitalism to continue flourishing and increasing its means of production, it must further exploit the proletariat; however, repression is only possible when the repressed are being maintained consistently, and the living conditions for the proletariat are only diminishing

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This opportunity to earn creates pressure for them to be more efficient and innovative in producing commodities that would entice customers to purchase from them. Hence, as capitalists continue to innovate, consumers could now be provided with more options, resulting in greater chances of earning for capitalists and quality products and services for consumers. Moreover, since one of the central ideas of capitalism is to promote economic growth and encourage people to innovate and exercise free will in the market, it is not limited by any constraints as long as the changes to be made to it are constitutional and seek to improve the quality of life for both capitalists and consumers. Resultantly, capitalism transforms each and every place around the globe (Robinson, 2012, p. 6-7). A considerable example of this would be the United States which is regarded as one of the leading countries in the world today.

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The past hundred years give or take has given society many number of conflicts, many of which revolve around economic systems. The method of which the government runs a certain state not only symbolizes the way they handle their officials, but also symbolizes how their production is handled. The economic systems mentioned will be centrally planned systems and market planned systems. Although these could be characterized as many different economy systems such as socialism, only communism and capitalism will be discussed. By proving that the communistic and capitalistic systems both have positives and negatives, choosing which is best is simply not realistic.

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However, Karl Marx examined that in the case of capitalism, exploitation was essentially being hidden by the wage system. Leaving out cases of outright fraud, workers are employed, labour for a given number of hours, and then receive compensation in the form of a wage in return. On the surface it seems that a fair exchange is being observed, however this is far from the truth. The capitalist, in addition to purchasing various inputs into the productive process (machinery, raw materials, etc.) also buys what Marx called "labour-power," increments of workers' time during which the capitalist controls the workers' creative and physical energies.

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Introduction The Nature of Capitalism The Capitalist system has been interpreted throughout the years as either, “moral, immoral or amoral”, depending on the various thinkers whom had associated themselves to a particular understanding of capitalism (Bassiry & Jones, 1993).Capitalism in its most basic sense, allows for, “commodity production, in which there is private ownership and/or control of the means of production”, in accordance with the Politics Oxford dictionary (McLean & McMillan, 2009). Throughout history, Capitalism had undergone several phases before reaching the concept of what the notion is understood at present, or otherwise recognised as the “Stages of Capitalist Development”, and how the concept has shifted over time (Albritton,

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For capitalist environments, the citizens are motivated as people get motivation from how hard they work. The government allows people to practice free enterprises and thus focus on improving their lives. The following paper will take a look at the

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INTRODUCTION An economic system is defined by the various processes of organizing and motivating labour, producing, distributing, and circulating of the resultant of human labour, such as merchandise and services, consumer durables , machines, tools, and other technology used as intake for hereafter production, and the infrastructure within and through which production, apportionment , and circulation occurs. These arrangements are intended by the political, cultural, and environmental conditions which they co-exist together (Gemma; 2014). In a command economic system or planned economy, the federal government controls the economy by deciding how the state would use and distribute resources. The government also regulates prices and wages

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