Monday, August 26, 2019

Capitalism Essay Example | Topics and Well Written Essays - 500 words - 4

Capitalism - Essay Example In the political context, capitalism is the system of  freedom and legally it rules of law  opposed to rule of man. Economically men’s freedom is applied to the sphere of production. In the modern time, economists argue that capitalism works as a system of natural forces with the supply and demand that tends toward equilibrium. Governance here serves as the main distortion of capitalism and any opposition to capitalism is equal to the opposition to the markets. While Scott (2006) argues about the capitalism to be defined as an economic system with private actors to own and manage the use of property, the pricing mechanism coordinates supply and demand in the markets in the best interests of society. Government, in this view is responsible for tolerable taxes. In the simple word, Murray (2012) considers capitalism lifted the world out of poverty since it gave people to be richer as they create value and reaping the rewards. Thus, the concept of capitalism is perceived as th e indirect governance for economic, political and administrative relationship where organized markets exist with the set of institutional foundations with various rights and responsibilities that are created and regulated under the protection of a political authority (Rand, Branden, Greenspan & Hessen, 1986). While capitalism is taken for granted for many people, Wright (2007) states that certain behaviors of economic policies of the government may receive great criticism where capitalism as such is able to develop the negative consequences. Some bad effect of capitalism involves human misery and thwarted lives (Wright, 2007) and in general capitalism generates unnecessary human suffering. It raises the question of greed with exaggerated single-minded pursuit of self- interest which is in the context of capitalism to be the economic system that is driven by the profits.

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