Marxian critique of capitalism focuses on the private ownership and control of social means of production -- factories, farms, fisheries, forests, and their accumulated representations, financial capital. Capital is the product of the collective productive efforts of the men and women who do the work in society, and it ought to be controlled by them and put to productive uses that serve their needs and desires. Explain why you agree or disagree with this statement
Capitalism and communism are two entirely diverse systems. Capitalism involves the freedom of markets. In capitalism the means of production and distribution are owned and controlled by private owners. In communism the factors of production and resources are controlled by state owners or government.
Capitalism is simply when an owner with the wisdom of God free from government (even well intentioned) trying to impose its collective human wisdom upon society and individuals. Capitalism is the best way to conserve our resources in a proper way. Yet the benefits of capitalism have proven over history to benefit all society. Capitalism provides the valuable good and services. The workers are rewarded for their efforts and capitalism also helps in removing unemployment from country. It creates a better standard of living for all people. In communism no matter how efficiently a worker is doing job he will get the same income as every one else. The worker will not get any motivation for his work or there will be no incentive or bonus for new improvements in work
Capitalism has made creating wealth possible by serving one's fellow man rather through enslaving them. Even though it is not new to humanity its benefits have promoted abundant life far beyond any previous system. One of the biggest benefits of capitalism is that it gives you the opportunity to pursue your God given dreams and desires. It takes away limitations of the past and offers you a hope for the future.
1. Efficient Allocation of Resources
In capitalism resources are distributed according to the consumer preferences. Firms do not get any reward if they produce things which people do not want.
2. Efficient Production
Firms produce goods in an efficient way that can provide full benefit to society cutting cost to remain in competition and to be productive. If firms don't remain productive and efficient they will go out of business. In communism state ownership often leads to inefficiency because workers and managers lack any incentive to cut costs.
3. Dynamic Efficiency
This is efficiency over time. Companies in capitalism always produce goods according to customer taste and trends of market. In communism worker will not always get what they desire because the government will not improve the factors of production .the products and services will not be produced according to customer taste
4. Financial Incentives
Evidence suggests that people work hardest when there is a personal financial incentive. E.g. entrepreneurs only take risks in setting up businesses because of the potential for large financial reward. If this scope for private profit is absent then new firms won't be set up.
5. Mass production
Capitalism invents the concept of mass production and also invented the ways to low the cost of production. All benefits are given to society.
6. Better Living Standard
Capitalism makes the lives of "the lower classes" better by making products (including new products) that in past ages would have benefited only the rich classes, available at lower prices to every man. Capitalism is truly the system that bridges the gap between rich and poor because it elevates the standard of living of every man.
7. Capital Accumulation
Men are able to invest their savings in ever more ambitious projects, and by producing those goods and services they are able to create more wealth, jobs, and higher standards of living. The entire society advances when those few who are able to accumulate vast amounts are given the freedom to do so. In fact, capital accumulation is not restricted to the rich. Anyone can save his money and invest it. In fact, it is the small investor, through his banks and savings institutions, who does most of the investing in a capitalist economy. All is possible due to concept of capitalism
8. Increased Competition
Competition is a natural benefit and consequence of capitalism. While some may think of increased competition as a disadvantage of the system, it is advantage because increased competition produces increased quality and decreased prices to the consumer. Capitalism tends to reward the business that produces the highest quality item for the lowest price, resulting in increased market share for that producer.
9. Division of Labor
The division of labor refers to the specialization of labor in a capitalist system. Each worker has a specific task in which he specializes. Another worker specializes in another task. This division of labor among specialized employees streamlines the production process and is a major tenet of capitalism. In Communism no care is done in assigning the tasks. No worker is giving a special task every one do the work according to routine.
10. Decreased Government Interference
Capitalism requires governments to have a minimalist approach towards interfering with and regulating business. Companies that have fewer burdensome regulations have distinct advantages over companies that are held hostage by endless government rules and bureaucratic red tape. "Laissez-faire" is a term used by Adam Smith and other proponents of capitalism, which means "hands off" and is a popular term today as it relates to capitalist economies.
11. Decreased Inflation
Producers compete to see who can have the best and cheapest product in order to survive economically. This means the consumer will be given cheaper and better products.
People have to work hard in order to survive (as opposed to socialism and welfare states) keeping everyone working hard.
12. Economic Betterment
Capitalism improves the living standard of people by providing standardized products and life will be much better in this economic system. By contrast, in socialist states where the money is taken by the government for distribution, there is little urge for economic betterment and hard work because no matter how hard you work, you always make the same.
13. Encouragement of trade
Capitalism encourages trade. As business is conducted in open markets, traders endeavor to avail a variety of goods and services thereby increasing trade opportunities.
14. Employment opportunities
When ownership will be in private hands and work will be done efficiently. Production will be increased and labor will be employed in companies and firms
15. Development of skills
Capitalism results in a variety of goods and services in the market place. This affords a people to specialize in an area that they feel they can perform better.
Capitalism provides room for investment opportunities as those with the capital seek ways to put their capital in use to make profits.
Capitalism encourages self-organization. As competition levels rise, traders are bound to organize themselves and set a reasonable pricing method that benefits them all. In communism a specific so called pattern is followed no one cares for method of production. Due to poor management of resources no attentions is paid towards setting low prices.
18. Capital Structure
Corporate structure is the individualization of a group of people involved in a voluntary association. It involves a system of organization that maximizes productive output with the least amount of input. It organizes its resources into unique and efficient productive processes. Corporate structure requires a genius of its own. The corporation heads must discover and integrate the tools that will help in the achievement of the organization's goals. The structure is like a mini-machine with each part performing a different function. If the heads are good mechanics, they can keep the machine running smoothly while improving, altering, and adjusting it for more output. The corporation is the ultimate vehicle through which the division of labor and capital accumulation is brought to maximum effectiveness and benefit.
Technology is the application of knowledge to the problem of survival. Technology is merely the means by which man achieves a better standard of living, and as such can produce no evil. The haters of technology are merely people who are also haters of man, who don't want man to presume that he is so good as to seek a better life. Technology is impossible without knowledge, and the development of usable knowledge is impossible to any great degree without freedom, that is, without a government that protects the rights of those who seek knowledge. The society that allows freedom of thought and property is a society that says, "Do what you will and keep the rewards." Under such a system of capitalism, we find that men will think better and that others will utilize their discoveries in order to make and sell better goods to more people. The result is the increasing welfare of the people and the eventual elimination of poverty on a scale relative to less free societies.