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Hello Candidates, the topic we will be explaining today is Capitalism. First ask yourself "What Is Capitalism?"
Capitalism is defined as a political cum economic system in which partially or fully means of production and distribution are owned and controlled by private individuals and in which economic affairs of the government is at minimum (because individuals are controlling it).
So now, you know the answer to "What Is Capitalism?"
In capitalism, private individuals play greater role than the government in taken and executing decisions on what, how to produce and the distribution of what has been produced.
In this type of economic system, the private individuals who have the economic wherewithal, participate and perform in all sectors of the economy.
In capitalism, the pure market capitalist economy characterized by the private individuals of all means of production and distribution does not really exist.
For example, in developed countries such as Western Europe, Australia, Japan, North America, etc. adopted the free or capitalist political cum economic system and in these certain countries, the main goal for either the private ownership or the state participation in the production and distribution of goods and services is and also the resources are allocated according to price signal in these capitalist countries.
Characteristics Or Features Or Attributes Of Capitalism
a] Production is carried out in different forms as opposed to a single firm.
b] There is Freedom of choice to consumers, labourers, owners of property to buy whatever goods of their choice, work wherever they like and to use their properties as they anytime deemed, etc.
c] Capitalism has aristocratic structure attributed by few economic agents as compared with large number of participants in the economic life in a country.
d] In capitalism, there is competition between one firm, consumer and another which leads to economic rivalry.
e] Applications of advanced technology for high degree of productivity and to profit increment with highly developed occupational specialization.
f] In capitalism, the government plays limited role in the production and distribution of goods and services
g] As stated in the definition, private ownership performs partially or fully every production and distribution of goods and services with government economic participation at a minimum.
h] In capitalism, there is freedom of enterprise that allows private business enterprises to achieve and organize means of production in the manufacturing of goods of their choice.
I] Capitalism as a market economy, all production is intended for market, decision made effective through a system of market, all means of production purchased in the market and all relationship established in the market.
j] In capitalism, there are presence of many producers and as well as many buyers and consumers.
k] Production in capitalism is carried out in different forms as opposed to a single firm.
l] Labor is regarded as a marketable commodity and profit motive as the guiding principle.
Advantages Or Arguments For Capitalism
a] Capitalism encourages economic competition among producers and consumers.
b] Capitalism Increase the quality of goods produced and services render.
c] Capitalism is self regulating, hence, it requires no direction or guidance from the government.
d] Capitalism leads to specialization in production and distribution such as, increase in production skill, advanced tools and equipment and quality of goods.
e] Capitalism aids self reliant of a country.
f] Capitalism guarantee maximum freedom of enterprise and encourages hard working.
g] Capitalism provides alternative choices to the people.
h] Capitalism encourages the usage of effective talents.
I] Capitalism aids faster economic development which leads to invention and innovation of new ideas.
Disadvantages Or Arguments Against Capitalism
a] Capitalism encourages individual or private monopoly with its many disadvantages.
b] Due to the get-rich-quick syndrome of capitalism, it leads to increase in crime rate of a country.
c] Capitalism encourages few rich individuals at the expense of the majority.
e] Capitalism has no regulatory measures due to its self functioning system.
f] Capitalism encourages exploitation of many people by few individuals in the country.
g] In capitalism, profit are made at all costs even at the expense of human life.
h] Capitalism encourages inadequate distribution of income and revenue, especially to people below.
I] Capitalism some time, do leads to unemployment.
j] Capitalism leads to oligarchic form of government.
k] Capitalism encourages and leads to increase in acquisitive tendencies and also to man's inhumanity to man.
That is all on What Is Capitalism? Our next topic is socialism, so start asking yourself another question that, what is socialism?
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