End of Capitalism

End of Capitalism

End of Capitalism

Introduction

Capitalism advocates establishing of free markets and opening of opportunities for the people. It stresses that the ownership of the capital goods should be with corporate or private members of the society by making investments according their free will (Schumpeter, 2012). It argues that the pricing and profiting should be determined by free market mechanism. Capitalism is strictly against the government intervention in the economic cycle. Capitalism has been instrumental in the successful functioning of economies for the past three decades. The prolonged financial crisis has been repeatedly questioning the world's belief in capitalism (Kotz, 2009). The guiding principle which contributed in the creation of tremendous wealth in the economies and opened new opportunities for the people has according to some caused the economic problems which we are currently in. The debate of whether the capitalism has caused the recession is of great interest in the economic circles. Some has attributed that the lack of government intervention due to the following of capitalism economic policies has resulted in the depression (Hawken et al, 2010). Others argue that the systems inability to keep a check on the economy has caused the recession, as selected few took part in making profits on false grounds, which gave away when they got saturated. We will be evaluating the literature so evaluates the hypothesis that capitalism is coming to an end. We will present arguments in support of this argument and will also argue against it.

Discussion

End of Capitalism, Its True!

The world is experiencing a transition period. This transition period similar to other transitions is full of uncertainty and is being governed by the forces of change. The world has become a global village due the rapid development and inventions of internet, computers and telecommunication (Castells, (2010): Christopherson, (2011)). These advances are backed by faster means of travel which has reduced the distances (Ritzer & Jurgenson, 2010). The world is divided on following either political direction of public interest or to follow the economic direction lead to personal gains. Now people are more aware of the environmental effect of businesses, its effect on the eco-system and have reservations on corporations looking to increase their profit while compromising on the environment (Akerlof & Shiller, 2010). The disastrous events like the accident of Chernobyl, BP's Gulf of Mexico spill, and Exxon Valdex spill of oil are giving strength to the voices of environmentalism which are demanding the security of people's livelihood and the eco-system. These issues highlight the need of government intervention.

The economic down turn has severely affected the people not in the countries where it unfolded, but around the globe (Christopherson, 2011). The least developed and emerging economies that were dependent on the exports have also been severely affected by the recession in the United States and Europe. The Europe faces additional challenges as its economy is dependent upon the performance of all European Union economies (Nölke & Vliegenthart, 2009). The worse state of economy in Greece, Portugal, Spain and ...