Question

Is capitalism the best economic system for the economic well-being of a country? 500 words

Answer 1

Capitalism refers to an economic and political system in which a country's trade and industry are controlled by private owners or private enterprises for profit, rather than by the state or government . Here we can first discuss some pros and cons of capitalism . Some advantages of capitalism are : incentives for firms to be efficient , better utilization of rsources , no resource wastage , prevents large bureaucratic government , consumers are free to chose goods and services they desire , competition among firms and industries encourages innovation , better means of infrastucture and communication established etc . Some disadvantages of capitalism are : firms gain monopoly power , economy prone to business cycles , tendency of lowering wages , externalities damage the environment , unequal distribution of wealth etc .

Uncontrolled capitalsim can prove to be very harmful for the social well being of a country . But as economic well being goes , it can be considered to be the best system . It urges development , human capital formation , education and training , Research and Development into new lines of production , innovation , profit making etc . It makes a country wealthier and utilizes its resources to the fullest . Economic freedom is attained in this system .