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What are the pros and cons of capitalism? Show more Show less
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Capitalism is an economic system in which the four factors of production (entrepreneurship, capital goods, natural resources, and labor) are owned by private entities with the aim of generating a profit. Capitalism requires a free market economy driven by supply and demand. There is a lack of government intervention. Competition helps keep prices moderate and production efficient. This stands in opposition to socialism, a system in which the means of production are owned by the state.

Capitalism is good Show more Show less

There are many positives of capitalism. Capitalism ensures efficiency because it is self-regulated through competition. It promotes innovation, freedom, and opportunity. Capitalism meets the needs of the people and is beneficial to societies as a whole.
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Capitalism meets the needs of the population

Under a capitalist society, businesses that manufacture products in high demand flourish. These businesses compete with each other to meet the demands of consumers, giving people more choices when buying a product, and ensuring that their needs are met.
Capitalism

The Argument

Capitalism meets consumers’ needs. Some consumers have unique needs. In capitalism, there is a market for anything there is a demand for. Businesses cater to people’s needs and desires so that their product sells.[1] This means that if a specific group of people wants to purchase a product that doesn’t exist yet, business owners are given an incentive to produce it. The majority of the population will always have their needs met because capitalism encourages people to satisfy those needs in return for profit. This means that capitalism provides a wider range of goods and services. In addition, when businesses identify demand for a certain product, they will begin competing with each other to create the very best version of that product. This competition helps keep prices low and forces companies to be more efficient. Consumers end up with the best products at the best prices.[2]

Counter arguments

Consumers don’t end up with the best product at the best price without competition. Capitalism eliminates competition by allowing monopolies. This decreases competition and harms consumers’ rights by letting those few corporations to set price and quality standards.[3] Additionally, even when capitalism does incentivize companies to make products that people want (their demand), capitalism doesn't meet people's needs (education, food, housing, etc...).

Proponents

Premises

[P1] The competitive aspect of capitalism means that companies are incentivized to make their product the best, or to make new products that people want.

Rejecting the premises

[Rejecting P1] Monopolies decrease competition which means that consumers don’t get the best product at the best price.

References

  1. https://www.mercatus.org/system/files/The_Freedom_and_Economics_of_Choice.pdf
  2. https://www.intelligenteconomist.com/capitalism/
  3. https://connectusfund.org/21-capitalism-pros-and-cons
This page was last edited on Monday, 2 Nov 2020 at 23:22 UTC

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