List of Pros and Cons of Capitalism
There are many types of economic systems, one of which is considered the free market; Capitalism. Capitalism is generally thought to be a free economic system because the capital production and ownership of things, such as land, businesses, homes, oil distribution, and other goods, is by private or corporate owners- not the government. In Capitalism, people and corporations can invest and make decisions about how much things cost, how they are produced, and how to distribute goods.
List of Pros of Capitalism
1. Private Ownership
This means people and corporations can own land, goods, and investments. Private ownership means less government ownership and interference. It also means more power for the people.
2. Freedom to do Business for Individuals
In a capitalistic society, anyone can start a business and make decisions for that business as well as receive profits from the business.
3. Competition is Fair
Corporations and individuals can compete by waging the prices on their own goods. The free market is open for competition.
4. Political Freedom
Since there is economic freedom and people can make their own choices, the government does not control or own the right to decide on production or what the price is for goods. This creates a society which can make political decisions based on what the people want, rather than what the government controls.
5. Supply and Demand
Since the people and companies control the goods, supply and demand is controlled by what is needed and wanted by the people who purchase the goods.
List of Cons of Capitalism
1. Abuse of the System
Wherever there is freedom, there are people who will take advantage of and abuse the freedom. Some of the possible abuses in a capitalistic society include corporations using unfair practices in the labor field. Paying less than they should for the cost of living, and not allowing unions, having unsafe conditions to work in, are some examples.
2. Mega Companies Can Take Over
There are many small and privately owned companies in a capitalistic society, but when corporations grow and become huge, they can crowd out, buy out, and even push out, the smaller companies. This not only affects the small companies, but also individuals because when mega companies take over, prices are sure to go up and products limited.
3. Money is There, but Many Have Less Than a Few
The ability to grow financially is there, but the few who do may dominate the rest. There are many poor, some middle class, and few rich when there is a capitalistic society.