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Capitalism Essay

1413 words - 6 pages

Due to the limited resources and unlimited human wants, whole world faces problem of scarcity. Therefore, capitalism is needed to solve these production decision such as what and how to produce the goods and services and distribution decision such as for whom to produce the goods and services. Capitalism is an economic system in which the major portion of production and distribution is in private hands, operating under what is termed a profit or market system. In the country which works on capitalism system, the production and distribution decisions are made by private individuals who are free to pursue their self-interest and their decisions are coordinated and communicated through price ...view middle of the document...

These actions not only benefits the companies in pursuing their self-interest on profit maximization but also benefits the consumers, fully utilize the scarce resources in the country to the most productive and efficient manner and even keep the economy running. Besides, competition helps to monitor and restrain the behaviour of businessmen. For example, if a company is charging high price on certain goods whereas the other companies is charging much more lower prices on that good, customers will be driven away from the company which charges excessive pricing. Although the opponents of capitalism said that capitalism widens inequality and it supports the phenomenon of the rich get richer, the poor get poorer due to the rich has access to more resources in hand and they are able to generate more income with that resources, but just so, the rich can only provide the poor the job they need and help them to earn income to achieve their personal goals and economic success. Since everyone includes the companies, consumers, workers and even the economy is benefits from this economic system, there is greater good. As a conclusion, based on the utilitarian perspective, competition brings benefits, thus, capitalism system is moral.
Egoism defines right and wrong in terms of the consequences to one's self. Egoism is defined by self-interest. Thus, an egoist, when faced with a business decision, would tend to choose the course of action that he or she believes would best serve self-interest. Capitalism said that individuals are free to pursue their self-interest. In other words, companies are free to pursue their self-interest and earn profit for the company. Though, the opponents of the capitalism disagree. They call it selfish, greedy, inequality, immoral and righteously claim the power to use force to get you to obey their vision of the “common good.” They hold that a society based on voluntary association is “exploitive” and have replaced it with a dog-eat-dog system of pressure group warfare. Furthermore, they also claims that competition does not exist in capitalist economic system because your freedom and wealth are at the mercy of how much political influence you can muster. And with that power on political influence, exploitation and alienation on consumers or workers exist. Or else, why would the government introduce labour laws, minimum wages and the rights to form labour union in order to protect the labour. But, on the opposite side point of view, the consumers voluntarily pay companies for the goods and services they provided, allowing them to make a profit. Customers is also focus on their self-interest in getting the goods and services to achieve satisfaction. On a free market, business is about creating these types of win-win relationships by figuring out ways to benefit their customers while making a profit doing so. And, if they do defraud their customers or engage in some other crime, the government in a free market is there to put a...

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