Pros And Cons Of Capitalism In Australia

1306 Words 6 Pages
Australia is one of the most advanced large capitalist societies in the world, which is currently economically very successful. Australian society, however, doesn 't employ free market capitalism, such that happens in many developing countries and to some extent in the United States, but rather utilises a form of capitalism that is Keynesian, taking elements of socialism, to form a welfare state. Many Australians know we live in a capitalist society, but what does the term, Capitalism, really mean? Well, it is the economic system in which resources and the means of production are privately owned and prices, production, and the distribution of goods are determined mainly by competition in a free market, which is run by consumers and producers. …show more content…
Efficiency is renowned in a capitalist society. Efficiency, according to Capitalism, benefits everyone in all companies and firms. Producing goods that are in demand, in the most efficient way possible, is what Capitalism seeks to achieve. There is an incentive within capitalism towards privately owned firms to cut costs and limit waste. If the firm is state owned, they are often not as efficient as they could be, due to bureaucracy. This could be due to the lack of willingness to let go of surplus employees and a lack of innovative practices in the work place. This means Capitalism has the potential to breed efficiency in state owned firms, which all individuals of society can benefit from. Capitalism promotes economic growth by providing an open, even competition in the free market, which is good for business.

Private firms own the means of production and there is little government intervention in the production or pricing of goods. This means you can maximise your profits according to your own innovation, and the limits of demand and supply. The cons of living in a Capitalist society
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The richest 20% of Australians now own 61% of total household wealth, while the poorest 20% own just 1%. Two million people live in poverty, and at least 100,000 people are homeless on any given night. Public health care is under-funded, though we as Australians are lucky to have it at all, seeing as this is not available in many Capitalist countries, and quality education is increasingly only for children whose parents can pay. Pensions and unemployment benefits are far below poverty levels, again something that Australia is lucky to have. Australians living with disability have the worst quality of life in the developed world with one in two living in poverty. Solving wealth inequality would essentially solve class division, hunger, poverty and allowance for everyone to have access to health care and basic needs. There is a presence of greed existing in Australian society today. Something that most Australians have in common is that we want to get rich, be “happy”, to buy a new car or just to live in surplus wealth to mitigate the rising cost of living in Australia. This greed motivates people to strive for wealth. The ones who dominate want more and more money, and often, like Gina Reinhart, don 't give back to society. Big corporations have one goal which is to secure the greatest possible profits for their super rich owners, with consequences to others

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