Thoughts on Capitalism and its effect on Businesses
I am sure we are not new to the word ‘capitalism’ and ‘socialism’. This two forms of government is based on ownership of property and right to owning investment. In a capitalist economy, individuals are able to own whatever property or businesses the wish to own but this isn’t the same with socialism. A lot of countries in the west are capitalist while a few country in the east and Asia are socialist economies. A large percentage of the world practice capitalism while a very few practice socialism but which do you think is better?
Capitalism came into being in the 17th century in Europe and now capitalism has become a very integral part of the world. Countries like China which was a full socialist economy now practice a little of capitalism where private entities can now own properties and businesses. With capitalism, a lot of private companies have been able to list on a stock exchange market allowing every other individuals to invest into them and own rights to their investments. Although, this would not be possible in a socialist economy like North Korea.
Some people have said that capitalism has affected the world’s economy by creating inequality among citizens and affected the economic growth of a country practicing it unlike when the government owns everything and pay each person equally. This can also be countered looking at the fact that there are poor and hungry people in countries like North Korea, also the government owning every sector of the country means the government owns the live of the citizens. The citizens cannot demand an increase in pay as the government will decide not to make payment.
Socialist say that roles like CEOs should be needed because it only create an inequality in the pay and way of life. It is said that everyone does equal job in a company and should be paid equally but this doesn’t happen due to the inequality created by hierarchy. It is also believed that capitalism changed the goals of companies from growing to improve the economy to growing for profitability.
Capitalism to some people look like the wrong thing while so many do not support that claim. What is your take on this? Do you think capitalism is the way forward in the economy and in businesses or we should choose socialism?
