Question

Assume you are a supporter of market capitalism as it was explained in this chapter. Draft a reply to the points raised by the Marxist above. Your reply should both refute the points made by the Marxist and should make the case for market capitalism.

Capitalist Economic System (9 points) A Marxist makes the following points about capitalism:

1. In capitalism, goods that are truly needed, like health care, are under-provided. Production is

wasted on unnecessary goods like yachts for the rich.

2. In capitalism, innovation leads to ways to reduce wages and to ”deskill” workers. As a result,

wages are low and many alienating jobs are created.

3. In capitalism, the rich continually get richer and the poor get poorer.

4. In capitalism, there is a reserve army of workers. These workers escape their miserable condition

by abusing drugs and alcohol.

5. Capitalism is subject to recurring periods of recession or depression, during which unemployment

is high.

6. Freedom in capitalism is not real freedom since all but the rich are powerless.

7. In capitalism, the government is run by the rich capitalists, not the people.

8. Capitalism leads to monopoly control over industries.

9. Capitalism leads to imperialism and domination over poorer countries.

Answer 1

Answer:

market capitalism is a free market system with lack of government intervention where fector of production are owned by private entities. no economic system is perfect or flawless indicidually but I think capitalism is a good system for growth of a economy. We understand it through following points:

1. In capitalism, resources are properly allocated to make firms more efficient and only those goods are produced which are in demand by people. So there in no chance for production of unnecessary goods and goods that are truly needed, like health care are also provided to make people healthy s human resource is importatnt for capitalism.
2. In capitalism, due to innovations and creative system it leads to advancement of technology and make economic and social sector more productive. It creates new opportunities and does not reduce wages but increase competition among worker.
3. In capitalism, if you work harder you get more reward for it and if you does not work you get nothing so the more you work hard the more money you get. there many poor people who get rich by working hard so we cannot say that in capitalism rish get richer while poor get poorer infact we can say that in capitalism people get paid according to their hard work.
4. In capitalism, due to technological development machines are replacing workers but it does not mean that there is no need for worker infact workers are important for the maintenance of machines and developing new techniques etc. so if few opportunities has been replaced alot more employment has been created. Drugs and alcohol makes condition more miserable as they affect people both physically and economically. I think they are more costly than food items so can't make situation escape infact worsen the condition .
5. Recession or depression are cycle of a growing economic system so either it is a capitalist economy or any other trade cycle will occure and capitalism does help in reducing the more fectuations by controling money flow and helps in providing employment through inventions and innovations
6. Capitalism gives more freedom people either they are rich or poor it gives great opportunities to fulfill their ambitions provide better working conditions and provide freedom to choose what to work and where to work.
7. capitalism prevents large bureaucratic government and reduces corruption.