http://stumblingandmumbling.typepad.com/stumbling_and_mumbling/2012/01/inefficient-and-unfair.html
The article provides four major flaws of capitalism. The author acknowledges the substantial benefits capitalism has had on global prosperity, however critiques the major shortcomings our current economic crisis has revealed.
Can the flaws of capitalism simply be 'glossed over'? Has capitalism proven to both be unfair and inefficient?
Capitalism has flaws just like every single other system. There is no perfect economy or government or ethos. There are pros and cons for everything. But If you look at what Capitalism has done for this country, though, it is plain to see that it is very powerful. In our country's two and a half centuries of existence we have innovated more and become wealthier than any other nation on the planet in that short time period. It frees the minds of Americans to create and innovate and there is incentive to make money, invent things, think outside the box, and work hard for something that you believe in. It may have its flaws and be inefficient in some ways but I believe a lot of that stems from principles of democracy clashing with some principles of capitalism. With pure Capitalism, there cannot be true equality and with the principles of democracy you cant have complete efficiency. The folks in Washington need to find out a way to balance these two idealisms.
ReplyDeleteGreat point, Jon. Just because the country is going through a tough period of time, economically speaking, we cant just abandon the system that got us where we are today. without capitalism there would be no incentive for people to go out and achieve greater things. I for one would not be very thrilled if I had the same income as someone working at mcdonalds just because that is whats fair.
ReplyDeleteI agree with Jon. However, it is thought-provoking after the reading by Okun about the trade-off between equality and efficiency. In the book, capitalism was paired with total efficiency and the only thing getting in its way was equality. It is interesting to see that this is not the case. But even in its shortcomings, like Jon said, capitalism has proven successful for the United States.
ReplyDeleteI agree with Jon that capitalism creates incentives to achieve goals and it is one of the things that makes this country great. However, I also liked what Rachel said, referencing Okun saying the only thing stopping capitalism from being totally efficient is equality. I think this idea is amazing because I do believe capitalism is extremely efficient however, policy makers must be able to regulate it at a certain point. There will always be inequality in society and it is policy makers job to try and control it.
ReplyDelete