capitalism essay

In its purest form, capitalism describes a state in which there is no interference from the government in the market. Given that governments and politicians are interfering with market processes, the contemporary tendency cannot be referred to be real capitalism. Politicians continue to argue that market forces should be regulated despite the fact that it is commonly accepted that markets operating autonomously can benefit the economy. However, capitalism is not always dependent on a free market. The governments of China, Cuba, and the former USSR are all excellent examples. These states are more like state capitalisms, as can be shown by taking a closer look at them. The reason behind more countries frantically embracing such systems is the fact that they have the potential of boosting economic prosperity based on the fact that the underlying principle of capitalism is profit making but not the satisfaction of the market demand.

Response 1

I concur with you because a keen analysis of what is happening in the contemporary world does not show complete consistency with the real sense of capitalism. Given that the current systems of governance are not willing to allow total market freedom, companies have adopted to promoting consumerism and take advantage of the society encouraging the consumption of certain goods and services.

Response 2

I agree with your point. Capitalism is made to make profits rather than provide what the market demands. Companies opt to produce goods in foreign countries, where the cost of production is cheap. Likewise, one of the downsides of capitalism is the creation of economic classes, where the owners of the means of production accumulate wealth, while the others suffer in poverty.