Question

1. Discuss the strengths and weaknesses of the economic system of capitalism.

Answer 1

Strengths of Economic system of capitalism:-

• Capitalism in Economic system protect property Rights and coin money.
• They support the Economic activities of a modern Market.
• Free Market capitalism is an Economic system that promotes Economic growth and development.
• Competitive nature of capitalism creates Economic opportunities and incentives.
• This promotes Economic growth and advancements in wealth.

Competition in capitalism market improves productivity and provides innovative culture of improvements.

Weaknesses of capitalism:-

• In capitalist system, social benefits are ignored.
• This leads to social conflict.
• It causes inequalities and unfavourable consequences between rich and poor.
• Wealth Business owners take advantage of capitalism to corrupt the government to gain complete control of their Industry.
• In a capitalist system,natural Economic cycles cannot be controlled
• This causes depressions and Recessions in the Economy.
• Free markets fail to provide necessary goods and services.