Do you believe that Capitalism is moral? Justify you answer.
Capitalism can be defined ideally as an economic system in which the major portion of production and distribution is in private hands, operating under what is termed a profit or market system. No central governing body involves to these private owners what or how much of anything will be produced. There are four key features of capitalism: companies, profit motive, competition and private property. Capitalism allows the creation of a separate existence from people who have contact with their company or organization. A second characteristic of capitalism lies in the motive of the company,that is to make to make profit. Whereby, human nature is motivated by profit. “Free competition,” said Smith “is the regulator that keeps a community activated only by self-interest from degenerating into a mob of ruthless profiteers.” (Shaw, Barry and Barry, 2013,p123) Competition regulates individual economic activity. Private property is central to capitalism. Thus,the major economic decisions are made by individuals or groups acting their own in pursuit of profit.
As compared to other form of economic system, capitalism benefits the society in various ways. Organizations are motivated by profits, companies will compete freely to attract more customers, therefore it generates low prices of products, increase quality of products, new products being launch and so on. According to utilitarian argument, Capitalism is morally right because the balance of good over bad is greater where consumers and organizations both gain. The resources in the country were also being used up efficient and effectively. Utilitarians want an economic system that will bring more good to society.
Organizations maximize their own interests of profit maximization by satisfying the interest of the consumers. According to Adam smith (cited in shaw, Barry and Barry,2013, p.73) only through egoistic pursuits could the greatest economic good...
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Kohn, A. (1987). The case against competition. Working Mother.
Shaw, W., Barry, V. and Barry, V. (2013). Moral issues in business. (Second Asia-Pacific Edition) published by CENGAGE.
Www1.american.edu, (2014). NIKE and Child Labor. [online] Available at: http://www1.american.edu/ted/nike.htm [Accessed 16 Sep. 2014].
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