The sociologist Karl Marx coined the term capitalism in the mid 1800s.He implied that Capitalism was any private ownership of property or enterprise.Profit motivated the system and it let to a free competitive market.Like other systems,capitalism too cannot be called a truly perfect system.Regardless,there is no other political and economic system that has alivated more poeple out of the clutches of poverty than Capitalism. Say what you may but this system has proved it's mettle and has stood the test of time.It has been critized by many skeptics for propogating monopoly of resources and mass consumerism.Capitalism has a very bad reputation of assisting the already rich and powerful to hoarde even more wealth for themselves while the poor compete among each other for scraps.
In a capitalist system ,the consumer is all powerful and some people are intrinsically pre-disposed to work harder and smarter than others and these select few eventually dominate others in this sort of an economy.These select few recycle the riches among themselves and create even more monopoly due to lack of government control.The flow of money within different classes is minimal.Labour exploitation becomes rampant which ultimately leads to strikes and revolts.This inturn negatively affects the entire economy.Profit and demand take the centre stage and serious externalities such as pollution are ignored until they cause serious damage.Firms which are early to the party and have created a niche for themselves ,push out smaller firms due to the immense level of competition.Such grave faults in this system have somewhat ledto the loss in appeal of the capitalist ideology.
On the otherhand,there lieseveral advantages in the system.
Government involvement and meddling is curbed and is kept at limited levels. Many issues and problems arise with government intervention and these are curbed to a certain extent.Individual incentives motivate individuals to work as hard as possible.Capitalism makes sure that there is no cap on the levels of wealth a certain indicidual can accumulate within the economy.
Capitalism is pro-choice and it gives people the oppurtunity to choose commodity purchases as well as employment oppurtunities.Resources are distribted according to consumer choice making the market more consumer friendly.Capitalist firms generally work with great efficiency in order to curb losses which leads to a better economy as a whole.Companies entice their employees to work hard for incentives and they develop a self interest inthe proficiency of the company.This benefits a country on a global level in innovative fronts.This invariably leads to more fluidity between social classes.Wealth and company resources expand and they benefit the economy by bringing in foreign investment.
Capitalism is constantly evolving yet it still has its share of disadvantages andit has survived regardless.With a bit more government intervention the exploitation can be curbed and the benefits of the system can be reaped without any repercussions.