What is capitalism?
Capitalism is an economical – political system whereby the means of production, distribution and exchange of good and services in a state is totally controlled by private individuals, this private individuals sees to the process of buying and selling commodities while the government have little or no say in the economy.
Capitalism is said to be the younger brother for imperialism, In what way? Capitalism it is when some private individuals rules the means of production in the state or country, so we call them (internal ruller), on the other hand, I said imperialism is the brother, imperialism is the adventurous journey of some set of individuals back up by economical reasons to another less developed country for exploitation purpose.
Britain and French empire coming down from their territory to some part of Africa country was main aimed at economical exploitation reason and for they don’t speak the same language or eat the same kind of food or do things that people of that natives do, they are called Imperialist. So let go into the generalization I want you to realize, as capitalist are to home (internal) so as the imperialist are to be coming down from somewhere else (external).
I hope you guys got that right, many people don’t really know this proper analysis, I’m doing this post on capitalism not imperialism, there is no how one will want to do the proper analysis of capitalism without pointing out imperialism, socialism and communism is the direct counterpart of the two. For proper understanding of topics in government you can subscribe to our website, or message me on email, Ibkemmanuel79@gmail.com, do comment and subscribe on this site.
In this kind of system, private individuals play bigger role in controlling the economy of the state I.e the how to produce, and the distribution of all that is produced.
If one should try emphasizing some concept, one could get that capitalism is not in full real sense come to view or emerge because we surely always involve in the means of production in a state, the government serves as a core role factor in managing economical affair of the economy.
Most of the so-called world war developed nations such as Japan, New Zealand, North American, Australia, Israel, E.t.c adopted a free economy system, are you confuse about free economy system? It means capitalism, in this system profit is the main motive a capitalist state will always be after. Resources are divided in the order of price sign in this system.
Features or characteristics of capitalism
- Private ownership of the total means of production- government intervention is very low and its power is to no avail I.e the government are powerless in this kind of system.
- It has an aristocratic formula whereby the best/wealthy citizens controls the means of production, and it is a system of few compare to this large number of person participating in economy life of a country.
- In capitalism, there is always freedom of choice by the producers, he may not in one way contact the government or the people in the society about the goods they have but rather choses product from is own mind thinking of what is do is the actual.
- It aids competition that makes one firm put more toes just in the name of sending another out of the market, the private individual system make efficiency and effectiveness system of the economical administration.
- Profit aim is the guilding principle, profit is seen as the main core things a capitalist cherishes or fall for
Advantages or merit of capitalism
- Capitalism tends to be a system whereby self controls the means of productions, and for this the government intervention is very low
- It ensures most enterprises their freedom
- Capitalism leads to specialization in production with its many advantages like increase in production skill, quality of goods, economizing tools.
- Capitalism builds a platform whereby one knows how to applies its initiative in the name of effective use of talent.
- A capitalist economy is a system that provides the people with alternatives system.
Disadvantages or demerit of capitalism
- The system is a system of the make-rich-fast syndrome which leads to a lot of economical crime in a society.
- It is a self rulling system whereby each private individual regulate and measures its own price by itself.
- Capitalism is a system of exploitation of many people and citizens by private individuals in the country.
- Inequitable distribution of income is another disadvantage of the private economy owned system.
- The generalization define by scholars about capitalism is that it is a system that lead to “man’s inhumanity to man”
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