Capitalist Economy Crisis

Introduction

Throughout the history, there have been issues that have become a reason for men to raise controversial debates. One of such issues is of choosing the best economic system that works for the betterment of the people as whole. There have been many economic systems that were introduced over the time. The proponents of each system would advocate their system because they considered it to be the perfect economic system that could replace the existing ones. The capitalist and socialist systems are the ones that need to be considered because they are the most notable systems, adopted by countries around the world. Both the systems are in conflict with each other because of the differences that exist in their ideologies. The paper will discuss the capitalist system and how it has helped to prosper the economies around the world and it will also discuss the shortcomings of the systems and the extent to which its assumptions can lead the economies into crisis situations.

Discussion

In the current scenario, most of countries across the world have adopted capitalist system. It can be established here that capitalism has unique benefits to offer to the world economies. One of the basic assumptions of the capitalist system serves to eliminate the role of the government in the markets. According to the ideology, the government does not have to intervene in the market mechanisms. It is the market forces that determine the price of the products. Anyone, operating in a capitalist system, is allowed to make as much profit as he can. The wealth, in a capitalist system, is used to create more wealth. One of the criticisms that have been offensive for the ideology is that it exploits the poor and provides the rich with the opportunity to flourish regardless of any moral values (Himbara, 1993). People can make as much profit as they want regardless of the ethical and moral boundaries but the only thing that they have to keep in mind is that they have to abide by the law otherwise they would be considered a threat to the system.

In a capitalist economy, the government does not take part in the any kind of production process but it is the entrepreneurs that are encouraged by the government. It means that the capitalists control the sources of production and exploit labor to gain the surplus value in order to stay wealthy. The government does not have any part to play and it is more like a bystander that does not join the game. Undoubtedly, the system is known for its capability to promote the economy immediately and improve the economy level of the countries. Majority of countries, throughout the world, are capitalists. They have assumed the ideology because there are incomparable benefits of the capitalist economy. The United States of America turned out to be an advocate of the system and helped in its introduction throughout the world after the World War II.

The World War II brought devastation to the ...