Advantages and Disadvantages of Living in a Capitalist Society- Daniel Snyder

Discuss both the advantages and disadvantages of living in a capitalist society. Then describe how such disadvantages could be minimized.

-Capitalism is an economic system in which all or most of the factors of production and distribution are privately owned and operated for profit. In every type of economic system there are pros and cons. One advantage in a capitalist society is that businesspeople decide what they want to produce. Individuals that own businesses in capitalist societies all start out equal and depending on the success of their products can better their business. Based on the success of one’s business is what allows them to grow their business to make more money. Another advantage is that the economy is overall more productive because the countries government doesn’t have to decide what goods and products to produce. As for consumers looking to buy goods and products have many options, because of the competitive market that exist in capitalist societies, one can get the best products for cheap. This happens because business owners have to set the prices of their products cheap so that it attracts customers. Another advantage in capitalist societies is the freedom that the business owners have. They not only choose what to produce but also how much they produce along with how much they want to sell the product. Business owners also decide how much to pay their workers, although many governments set a minimum wage. Capitalist societies often reward individuals that have good ideas that work hard enough to find success in the business. Business owners in capitalist societies have the success of their business on their back, they hold the future of their business in their hands and have the ability to make or break the business. A disadvantage of capitalism societies is that it creates social inequality. Although the owners of the businesses prosper, many people become poor. In capitalist societies wealth is not equally distributed so often, the rich often get richer, and the poor get left behind. Another disadvantage to living in a capitalist society is that because money isn’t evenly distributed, there is a lack of government welfare. When there is a lack of government welfare, education systems, health care and other important services aren’t properly funded, which could lead to political instability and possible conflict.