Capitalism Essay example

1379 Words 6 Pages
Due to the limited resources and unlimited human wants, whole world faces problem of scarcity. Therefore, capitalism is needed to solve these production decision such as what and how to produce the goods and services and distribution decision such as for whom to produce the goods and services. Capitalism is 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. In the country which works on capitalism system, the production and distribution decisions are made by private individuals who are free to pursue their self-interest and their decisions are coordinated and communicated through price signals which also means by profit motive in the …show more content…
Besides, competition helps to monitor and restrain the behaviour of businessmen. For example, if a company is charging high price on certain goods whereas the other companies is charging much more lower prices on that good, customers will be driven away from the company which charges excessive pricing. Although the opponents of capitalism said that capitalism widens inequality and it supports the phenomenon of the rich get richer, the poor get poorer due to the rich has access to more resources in hand and they are able to generate more income with that resources, but just so, the rich can only provide the poor the job they need and help them to earn income to achieve their personal goals and economic success. Since everyone includes the companies, consumers, workers and even the economy is benefits from this economic system, there is greater good. As a conclusion, based on the utilitarian perspective, competition brings benefits, thus, capitalism system is moral.
Egoism defines right and wrong in terms of the consequences to one's self. Egoism is defined by self-interest. Thus, an egoist, when faced with a business decision, would tend to choose the course of action that he or she believes would best serve self-interest.

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