The Pros And Cons Of Capitalism

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WESTERN CAPITALISM VS. STATE CAPITALISM Capitalism is an economic system whereby means of production were owned and controlled by private actors in which they were allowed to own and control the use of property base on their own interests, and where the supply and demand in markets were coordinated by invisible hand of the pricing mechanism in a way that may suit the best interests of society (Scott 2006). Reisman (1998) describes Capitalism as “a social system based on private ownership of the means of production. It is characterized by the pursuit of material self-interest under freedom and it rests on a foundation of the cultural influence of reason. Based on its foundations and essential nature, capitalism is further characterized…show more content…
As a natural corollary, we have this new face of imperialism-the continued exploitation of the developing countries, not by the flow of capital for the extraction of raw materials, but by direct intervention in the production patterns in the developing countries in order to ensure market access for the products and services of the developed countries. This can be achieved, and has so far been achieved, by the co-option of the elite in the developing countries by the forces of modern capitalism. Major weakness of this system according Parikh (2011) is that “private companies become so big that they become almost monopoly in their field which leads to exploitation by them in terms of charging the price for product or service which they produce. Also In this system poor people are hit the hardest because the gap between the rich and poor keep rising under this system as there is limited government control”. He further suggests that, due to these many countries adopt a mix of capitalist and socialist economic system where the important resources are controlled by government and rest are left to the

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