The second is that every job in a society focused on Capitalism helps someone else in some way. The first, and most common, is that people in a Capitalistic society are working for their own benefit. There are two ways to look at Capitalism. It is a society that is based on the service of others. Services are improved to solve more problems.Ģ. Employees focus on improving their best practices so they can remain as productive as possible. Businesses invest into research and development to create better products.
What Are the Pros of Capitalism?īecause there is a need to compete to remain profitable, Capitalism is a system that encourages innovation like no other system of economics. Here are some additional key points to consider when looking at the overall pros and cons of Capitalism. This causes the rich to become richer and the poor to stay poor. Because those who are poor have less access, they have fewer chances to change their circumstances.
People who become rich tend to reinforce their position because they have a greater access to the societal mechanisms which bring wealth. Whatever dream they have, there is an opportunity to pursue it at some level.Ĭapitalism can also segregate people into socioeconomic classes that limit the opportunities that are available to them. They can choose to own a business, work at a specific employer, work as a freelancer, or not work at all. The primary benefit of Capitalism is that every individual has some level of control over their own fate in life. In Capitalism, goods or services are distributed based on societal mechanisms instead of government controls or mandates. How does society see the role of the government? If that society desires a lack of government intervention within the production and various economic systems, relying on market-based competition and supply/demand needs instead, then that society will desire Capitalism.