Capitalism

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The advantages and disadvantages of capitalism.

Capitalism is an economic system based on the private ownership of capital goods and the means of production, with the creation of goods and services for profit. In contradiction to socialist systems, such as communism and socialism, it characterised among other things by high level of competition in business. Capitalism became dominant in the Western world following the demise of feudalism; it played an important role in the emergence of the modern European civilisation. There are a lot of people around the world who think that it is the best way of the economic organisation of society and also them who consider it unfair and cruel. A common criticism of capitalism is that it does not give enough social security and causes a huge gap between upper class and poor people. Those who for some reason are not able to compete in the labor market and in business risk not having enough money to rebuild their lives. On the other hand, wealthy people who have capital are well positioned to augment their estate and lead a lavish lifestyle. Moreover, under capitalism, the business lobby could have a negative impact on social life, which can have devastating consequences. For example it could be a car or a building lobby, which influenced the cities in the United States at the end of the last millennium and turned them into polluted buzzing maze of highways, not suitable for human life. In spite of these drawbacks there are also some positive aspects of capitalism. The major one is that business struggle stimulate people to participate in the process of production goods and services. A situation in which the majority of people in a society consume more than it produces is the cause of the crisis. It is therefore so important to have an economic mechanism that provides the same opportunities for everyone and allows receiving for their work as much as earned. To sum up, although there are some obvious disadvantages of...
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