Pros And Cons Of Pure Capitalism

Pure Capitalism is a free enterprise economic system based on the private ownership of individuals. Pure Capitalism is not (is) the best form of government in today's society. There are three main supporting reasons why pure capitalism is not (is) the best government. Starting off, a pure capitalist country is not okay because it doesn't have government intervention. This means that the government is laissez faire. The first supporting reason for why a pure capitalist economy is the best, is the government does not own any industries. All of the industries are privately owned. Lastly, pure capitalism is not good because goods and services are distributed according to price mechanism instead of set prices made by the government.
A government without intervention is a government that is setup to fail. One of the main ideas of government intervention is to create trade. If there is no government intervention markets fail to take into account externalities and are likely to under-produce public goods. For example, governments can subsidise and in turn provide goods with positive externalities. Another main idea of government intervention is that greater equality is available. When someone redistribute income and wealth it will increase the equality …show more content…
This means they can not regulate what goes on in such industry. One of the major reasons why companies want to stay private are because they do not have to follow the excessive amounts of requirements for reporting. A private industry is not subjected to Securities and Exchange commission or the SEC, which states they have to have a third-party audit them and or require annual reporting. Also, reporting for a private industry does not happen. They do not have to disclose important information to the public. Private companies can not raise capital but they do have access through outer sources like bank financing. They produce relationships with their banks and this is a major