Question

Whats 13 factors the Failure of Capitalism economy?

Answer 1

Factors causing failure of Capitalism:

• Rise of Monopoly Power. A firm with monopoly power can charge unfair price from consumers and this is one of major drawbacks of capitalism.
• Capitalism leads to inequality of wealth. In Capitalism small group of people holds on wealth and which they passes on to future generations. In such a way wealth is concentrated to a small group of people only resulting in inequality.
• Recession is an outcome of capitalism as capitalist economy is based on market of consumers and producers, so it is subject to growth and decline.
• A capitalist economy is prone to unemployment as market is dependent on producers and consumers which may experience decline at certain points of time.
• Capitalism does not benefit the people who lack competitive skills like children, disabled,elderly people and caretakers.
• Capitalism is also dependent to some extent on government policies that gives more value to family unit.
• Capitalism fails to provide equality of opportunity.Those without good nutrition, support, and education may never make it to the playing field. Society will never benefit from their valuable skills.
• As capitalism creates an unfair and unequal system, so in long run it limits diversity and innovation.
• Capitalism ignores external costs like pollution and climate change. In long run this will harm the society.
• Capitalism leads to more depletion of natural resources.
• In the long run it lowers the quality of life due to adversely affecting climate.
• In the long run the capitalism increases the costs for everyone.
• Capitalism makes society undemocratic. People with more income have more power and freedom.
• Capitalism leads to exploitation.Capitalism allocates income through the market--a system that pays you based on how much bargaining power you have.Exploitation is using another person's labor without paying them an adequate compensation.
• Capitalism leads to theft. Since it is based on idea of privatization of planet and resources,it means  you are claiming control over a portion of the planet for your own private benefit to the exclusion of everyone else and using whatever force is necessary to maintain your control.