Nature of Capitalism: Capitalist Economic System Today (Article Sample)
* Name of the book: Moral Issues in Business (13th edition)
* Chapter 4: The Nature of Capitalism.
* “For Further Reflection”
1. What do you see as the strongest moral consideration in favor of capitalism? What do you see as the strongest objection to it?
2. How capitalist is our economic system today?
3. What do you see as the major economic challenges facing our society today and, in particular, your generation?
* Answer all three questions that from the book, and write an essay about them.
* One source:
Shaw, William H., and Vincent Barry. Moral issues in business. Boston: Cengage Learning, 2015. Print.
* 12 point font and 1.5 line spaced.
* 800 words
The Nature of Capitalism
One of the strongest moral arguement or consideration in favor of capitalism is Adam Smith’s concept of the invisible hand. Adam Smith who is considered as the father of economics argued that whenever people are left to pursue their interests and targets, they normally exceed it by producing the greatest good for all. He further stated that, each individual and his/her pursuit of wealth is guided by an invisible hand which is beneficial to the organization and the society as a whole due to its distribution of the limited economic resources. However, what Adam Smith did not take into account is the fact that human beings are acquisitive. We tend to have a natural propensity for trading and we are people of self-interest. Therefore, we get what we need from others by offering them something they need. This leads to trade and as a result, division of labor and the production process is created. Since human beings are materialistic and self-serving, engaging in labor and trading is a way that results in the greatest benefit to society. If we try to advance our self-serving economic interests, we also promote the economic well-being of the society.
Critics argue that capitalism has lead to a profound economic inequality system. The difference in personal incomes is enormous and over the past few years, that difference has increased more than ever anticipated. This is further compounded by the fact that a minority of the population owns majority of the country’s wealth; while the society is marred by extreme poverty, and lack or poor housing. Supporters of capitalism claim that, it is a fair economic system but, reality seems to challenge that notion of fairness (William.H.Shaw 123)
Capitalism has managed to evolve over the years to what it is today. The mercantile capitalism which advocated for mutual dependence between commercial interests and the state is no longer realistic and viable. However, some of the characteristics such as use of gold as a measure of government’s wealth and financial strenght, and as a safe storage of one’s or state’s wealth is still applicable today. The mercanti...
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