What is Capitalism and What are its impacts on society?
CAPITALISM AND ITS IMPACT ON SOCIETY
Capitalism is a mercantile and a pecuniary system wherein private-enterprises or businesses possess capital merchandise. It is supply and demand, freedom, choice and incentive. Supplies and demands are how capitalism sets prices. It is the business of buying and selling goods and services for profit.
If we take a look at the global wealth distribution, the richest 10% own 86% of all the wealth while the other 90% owns the rest. In fact, in the last 10 years, the number of billionaires has doubled with a new billionaire created every 2 days. In 2018 forlorn, the capital of the magnates intensified by around 900 billion dollars. When we take a look at such numbers, it seems like Capitalism has created the most unfair society in human history. These giant corporations care about nothing but to make money at the expense of others and the environment. That might be true to a certain extent but believe it or not, despite all of its weaknesses, Capitalism is the best system that we have ever had.
As for much of human antiquities, the whole world was subsiding in penury. And for hundreds of years, that did not improve. The entire world were farmers except for the king and the people around him and that was the case in every other country but with the Industrial Revolution and the rise of Capitalism that began to change. And in the next couple of centuries, we have made more progress than in the last thousands of years. In fact, according to the World Bank, in 25 years from 1990 to 2015, over a billion people lifted themselves out of extreme poverty and the global poverty rate is now lower than it has ever been in history. It’s one of the greatest human achievements of our time. By 2030, the World is directing to terminate penury up to par. And that’s mostly due to Capitalism. Since the fall of the Soviet Union, more and more countries embraced the free market and opened themselves to the World which gave billions of people all around the World an opportunity to improve their lives.
However, no matter how hard we try, there will always be wealth inequality as long as there is a free market because there will be competition. People are different, some are willing to work 40 hours a week while others 80 and some don’t want to work and binge watch on Netflix. Not everyone is smart enough to build a prosperous career. Not everyone is ready to put the time and effort into becoming financially literate to make the right investment. In fact, some people are simply careless and would easily get into debts that they will be paying for the rest of their lives. On the other hand, if someone is born in a wealthy family, his path to success and wealth will be much easier. And that’s why people hate Capitalism. Freedom is great if people are disciplined, smart and wise because they will easily be ahead of everyone else but if they are not, then probably they will have a mediocre life.
However, the only alternative option left is socialism, which is proven to be a horrible idea. Whenever the Government intervenes in the economy and tries to distribute the wealth fairly, it ends up hurting the very people it intends to help. Even in the most
Capitalist country in the world, like the United States, once upon a time, education was very affordable. However, the Government wanted to help more people to get educated so that they can get a better job and have a prosperous life. So, it started providing financial aid and student loans to everyone who wants to go to college. That seems like a noble thing to do, just imagine how many people will be lifted out of poverty, nonetheless, it ended up hurting the students and ordinary people. When colleges realized that the Government is
helping these 18-year-old kids to pay for college, they started slowly raising their prices. In fact, they began to build fancy buildings, giant stadiums, etc. to attract more students which further increased tuition fees. But it didn’t matter because the Government was ready to pay for everything anyway. Fast forward to today, college is so expensive that most people who go to college end up becoming poorer because they have to pay back their student debt for years to come.
Hence, Capitalism is a practice by
which the obstacles of economic yield and supply might be rectified. In place
of drafting economic adjudgments through streamlined and amalgamated political
methods, it should be anticipated under Capitalism that occurs through
regionalized and elective verdicts.