In real life, there are few countries implementing Capitalism. For example, US. In the US, the shares of earnings and wealth of the households in the top 1 percent of the corresponding distributions are 15 percent and 30 percent, respectively.As a result of implementing Capitalism, there is a big range of wealth between the rich and poor people. The rich will become richer, the poor will become poorer. As such a negative situation occurs, the crime rate in such country will be higher.
When a country is implementing capitalism, the government have no right to intervene in the free market. When such a situation happened, who are going to help those who are poor? The free market will be monopolized by those rich people. For the poor, they have no modal, no resources, no power, and no ability to compete in such an unfair market. How are they going to compete? Even if they owned the ability, the qualification, but they have no the fundamental term to fight with rich people that is money. In a free market, when you are rich, you will only become richer as u have a lots of money and resources to invest into. For the poor, they are not the one who demands how much salary from employer, but they are the one who are looking for how much the employer willing to pay them. As a result, they are forced to accept low wages in order to survive. The paid they get, not worth the effort they pay out. Normally, the wages they get, only enough to support their basic cost of living. As a result, They have no extra modal to help them to grow and to expand their ability. The low wages also influence buying power. As a result, poverty rate will be higher.
Some critique argues that the allocation of resources in capitalism is inefficient. For example, in 1995, around 200 million of Indians faced the problem of hunger. In the same year, India economy had exported around $ 625 million of wheat and $ 1.3 million of rice. In this case, Indian economy is able to export food worth around...
Please join StudyMode to read the full document