The Pros And Cons Of Capitalism

Decent Essays
When comparing different societies across the globe, it becomes apparent that some are wealthier than others. Buying basic goods such as clothes is a trivial task to some, while for others it is a challenge. From these differences, two opposing perspectives about capitalism emerge. One group states that capitalism hinders the ability to meet “needs, expectations, and desires” of workers, and additionally exploits them. The other group looks to capitalism as a source of hope: an opportunity to improve current circumstances to create a better life. The question then emerges, is capitalism the solution that is required to alleviate poverty, or is it “morally objectionable” and should be replaced? Those in support of capitalism claim that this system: rewards hard work and ingenuity, provides opportunities for growth, and creates wealth. Those against capitalism argue two main factors, that capitalism perpetuates inequality and creates alienation. Capitalism creates a free market that must constantly adapt to meet the changing desires of consumers, and the frequent alterations to the composition of the workforce. If a supplier in this free market is not able to adapt, it is forced to close; a business that is able to meet the new needs takes its place (Hayek, “The Use of Knowledge in Society”). The same rules apply to suppliers of labor. Laborers that work hard and utilize ingenuity are rewarded for their efforts, and as a result, they retain their jobs. Adam Smith notes in his
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