It is commonly known that capitalism has both benefits and drawbacks, as well as any other economic system. At this point people’s opinion has divided. Some of them think that capitalism enables us to build almost perfect conditions for economic growth and human rights observance without government’s ubiquity. However others consider it as a fiend of inequality, excess materialism and other consequential.
First of all, capitalism provides free markets and limited government intervention. It gives power to the people and offers social and financial flexibility. Due to the freedom of trade, it encourages efficient production. Mixed-market capitalism makes the most profitable goods, services and bargains. In addition, it facilitates rapid economic growth and reward innovation.
However, what about the cons of capitalism? Undoubtedly, there is an array of disadvantages that escort this economic system. For instance, one of the biggest downsides of capitalism is inequality. Moreover, inequality is constantly increasing due to several reasons. For the most part, capitalists can pass on their assets to their children. Therefore, capitalism doesn’t provide an equal opportunities, because children of rich people born in privilege and they are much more likely to do well – because of better education and inherited wealth. By and large, they literally can only purchase assets – shares, bonds, property etc. and it will be enough to maintain birthright wealth. Hence, because of these manipulations, future generations can create a wealth multiplier effect. Another example of bad consequences of capitalism is a monopoly. successful firms can gain a monopoly power, which enables them to charge higher prices to consumers, especially if people don’t have a choice. For instance, it can be gas or electricity supply companies.
In conclusion, apparently, i can agree with an opinion, that despite there are many cons of capitalism, in our decade it is the best economic system, which we can build in our reality. Even if drawbacks are unfair and cruel, ordinary people anyway have a chance to gain high level of wealth.