Question

Capitalism is not an exploitative system. Every economic agents earns income in proportion to her contribution to the production and circulation of commodities. Discuss this.

Answer 1

Capitalism is not a system of exploitation ,rather it is the system of laissez fairie ie freedom . The notion that capitalism is exploitative is wrong.It is an economic system that consists of private ownership of means of production .The charges against Capitalism is that work is exploitative and slavery is an example.But slavery existed long before Capitalism evolved.Again it is said that it leads to materialistic society which is wrong because Capitalism does not sell goods to people forcefully. It only makes goods that people need. It is said that Capitalism leads to environmental exploitation which is not true because environmental exploitation exist in all other forms of social organization.The creation of poverty is another argument against Capitalism.It is argued that people have no choice where they work and so are forced to take low wages.It is just the opposite.Capitalism makes the lives of poor low skilled workers better by giving them opportunities to earn income that was not available before.Very few workers earn minimum wage .Majority get high income with experience.Households, firms , businesses and individuals are all economic agents and contribute to production and earn income .In Capitalism each factor of production are owned by individuals and contributes to production process and earns income based on its use.So the charges against capitalism are due to ignorance. The poor are better off in Capitalist system than in non Capitalist system.