Advantages And Disadvantages Of Capitalism

Introduction
An economy or an economic system, is the way how a country makes economic choices will utilize its resources to produce and distribute goods and services. Every economic system always attempt to solve three major problems they face such as What? How? Whom? Shall the goods and services be produced? They fall into four categories which is land, labour, capital and entrepreneur. An economic system is a blend of different substances or even areas that provide the financial structure that aides the social community. These are joined by lines of trade and exchange along with goods, cash and more. This influences Production, allocation of economic inputs, the distribution of economic outputs and consumption of goods and services in an

The level of freedom is attainable with capitalism since the economic system in capitalism leads to a political system. A government that owns a production can change and influence the prices leads to a political control which is seen as one of the most essential benefits. Besides, another advantages of Capitalism is improve efficiency. A capitalist society benefits from improved efficiency within all firms as producing goods which is demand the most and is often reliant on. These incentives creates pressures within capitalism for those firms cut costs and avoid waste. State firms are often to be more inefficient as this is due to lack of willingness to get rid of surplus workers and less incentives to try new innovative working practices at workplace. This implies that private firms has the possibility to breed efficiency, which all people in the general public can benefit from. Lastly, advantages of Capitalism is consumer sovereignty. By this, it gives freedom for to choose products from in a variety of market places as a consumer. This consumer sovereignty is what effects the efficient allocation of

Since, there is no competitors amongst it firms each of the individual will earn the same amount of money as the workers expects they will only get that what is planned for based on equality. This makes the lower class tends to become greedy and corrupt those who have it since there is no way for the classes beneath to gain how their country actually works. By this, communism leads to poverty. This create an employment problem due to the lack of growth in industrial and there is little in technology, cultural and financial growth that are encouraged by the state to certain factors. Another disadvantages of Communism is there are little or no consumer sovereignty at all. As one producer in the state and there are little choices they face by charging consumers higher than the market prices with low quality goods from all other monopolists. This may also lead to shortage of consumer goods as small central planning is difficult to achieve and leads to black market. Communism can be generally as corrupted as Capitalism. History has sufficiently given enough evidence where only the political leaders benefits the most from Communism. They frequently end up living a luxurious life and live in a life in a much better way than the normal people. It is humorous as Communism attempts to establish that everybody to