Capitalism


Capitalism
Meaning
            Capitalism is an economic system which given top priority to capital, market economy and personal economic gains.  The whole system centres around capital. The rich people find greater scope to multiply their wealth. The people of small means suffer due to non-availability of capital coupled with grim opportunities.
            Capitalism is a system of economic organisation in which business and industries are organised by the private people to earn more profit with a minimum of government interference.
Salient features of capitalism
  • Personal economic gains are the primary motives. Economic gains drive the people to undertake business activities.
  • Means of production (land, labour, capital and organisation) are owned and controlled by the private people.  As an owner of the concern, he has the liberty of modifying and enlarging the business operations and shifting the business from one field to another.
  • The right of owning the private property to any level and getting properties from ancestral and legal is possible.
  • Capitalism favours free and fair trade. Naturally persons of entrepreneurial skills can compete with each other. Competition in the market serves as the regulator of price, quality and business.
  • Individuals are permitted to do business activities and to have contract with any person.
  • Class conflict between the labourers and the capitalists remain unsettled as the economic interests of these two groups are different from each other.
  • Freed of state interference facilitates very much the business operations. Unnecessary restrictions in the business environment is avoided.
Advantages of Capitalism
  • Competition has been the price regular and quality stabilizer in the market economy.  Because of competition, consumers get a variety of goods with different features.  Competition facilitates to manufacture new items.
  • Private enterprises do the best things and  take timely efforts for the development of their organisation for fulfilling the requirements of consumers.
  • There is always an opportunity for the able and intellectual persons to show their knowledge and talent.  It provides greater amount of incentives and initiative for hard working.
  • Competitive environment facilitates for technological innovation for producing improved version of the existing goods.  It leads to reduction of cost of goods.

Disadvantages of capitalism
  • Unequal distribution of resources create a gap between have’s and have not’s. Rich becomes richer and poor remains to be poor.
  • The profit motive leads to the exploitation of the workers and the employees by the owners.
  • Human values are not respected as everything centred on capital. Capital  is the master.
  • Because of laissez-fair policy of the state, there is a possibility for over / under production of goods and other social evils.

Comments

Post a Comment

Popular posts from this blog

Cooperation Vs Capitalism and Cooperation Vs Socialism

Points of similarity between capitalism and cooperation 1.      Like Capitalism, cooperation also accepts the rights of private poverty and the    rights of contract. 2.      Cooperatives also use capital to carry on the business activities and pay interest for its use, as the capitalistic organizations do. 3.      Like capitalistic enterprises, cooperatives also employ the managers, and compensate them on the basis of quality of the services they render. 4.      Cooperatives also depend upon business efficiency for their success just as capitalistic enterprises do. 5.      Cooperatives also lay emphasis on profit.   However, earning of profit is not the primary aim of cooperatives. 6.      Both capitalists and cooperators generally oppose the encroachment of government interference. Dissimilarities between capitalism and cooperation ...
Read more

Cooperative Thought - Dr.William King

Dr. William King (Poor men’s Doctor) Dr. William King (1786-1865) was a medical doctor, a great philosopher and practical co-operator who is affectionately called as “Poor men’s Doctor”.   He was born in 1786 at Ipswich in England.   He did his doctor of medicine in Cambridge University in 1819 and got married in 1821.   He settled in Brighton where he actively engaged in social work which made him acquainted with Owenism. Brighton cooperative society           Dr. William King was very much interested in guiding the people to improve their economic condition.   Therefore, he promoted societies for mutual thrift.   To help the poor workers, Cooperative trading association (July 1827) and Brighton Cooperative Benevolent Fund Association (April 1837) were formed.   The cooperative trading association was started with the object of handling retail trade to mobilize capital out of profit in order to establis...
Read more

Salient features of Cooperation

Salient features of Cooperation Introduction The core values and essential characteristics of cooperation constitutes the salient features of cooperation in the broader sense.   These special features of cooperation distinguish it from other forms of organisation. They are as follows: 1. Voluntarism : The first and foremost character of cooperation is voluntarism.   The spirit of cooperation lies on the voluntarism. Voluntarism means an individual is entitled to join or leave an organisation without any compulsion. The decision to join or leave an organisation is purely vested with the individual’s own decision and without the compulsion / coercion from external forces. 2. Commonality : The special features of cooperation is the existence of commonality among its members.   The members who join the cooperation are having common character viz common need t be fulfilled. Common need may be on economic, social, health and other areas.   The main purpose of th...
Read more