Explain about Capitalism PDF

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academic year 2020/2021. Comm101 assignments. Get a good grade with high distinction in class. Argument for capitalism. This assessment is not hard. Find more reference for lecturer....

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Tut 8 Explain the arguments for capitalism. The first argument for capitalism is the natural right to property. In the socioeconomic system that we are living in, we are granted with certain property rights. We might not be able to own a person, but we are freely entitled to own a variety of items such as bonds and stocks, vehicles, houses, commercial buildings and more (Shaw, Barry, Issa, Catley and Muntean, 2016). The rights that people have are not acquired by any of their specific performance, but we are naturally born to these rights (Mack, 2010). For example, we can own a property by purchasing it, inherited or it can be as a gift from others, we are naturally bound to the rights of owning a property. These natural rights of property are an argument to defend capitalism since it is the outcome of the natural rights (Shaw, Barry, Issa, Catley and Muntean, 2016). The second argument supporting capitalism is the concept of ‘invisible hand’ by Adam Smith. Capitalism brings any economic benefits, based on its free and unrestrained market system, it is more productive and efficient compared to any other possible economic system (Shaw, Barry, Issa, Catley and Muntean, 2016).

Smith view human

beings as acquisitive creatures of self-interest (Shaw, Barry, Issa, Catley and Muntean, 2016). As human beings, we do not expect others to act for our best interest but not themselves. Therefore, to secure our own self-interest, we are to provide what others are in need of. For example, people purchase smartphones based on the features and how it will benefit our life in terms of performance, accessibility and more. While, for companies to achieve their economic interest, they are to satisfy the societies needs and request to stay competitive in the market which contributes to their profit maximization. This can be explained based on the law of demand and supply which ensure that companies are offering products that are equally fair in price that the public are willing to pay for. The law of demand and supply tend to avoid the capitalist from becoming a ruthless profiteer who seek for personal economic interest (Shaw, Barry, Issa, Catley and Muntean, 2016). 1

Tut 8 The third argument for capitalism is the human nature and capitalism. Based on the view of capitalism, human nature is seen as an economic creature that are driven by their selfinterest (Shaw, Barry, Issa, Catley and Muntean, 2016. Pursuing self-interest is not necessarily bad, in fact, based on Smith’s belief and capitalism presumptions where the general welfare of society depends on the freedom for individuals to pursue their selfinterest as long as they abide to the law of justice (Brooks, 2010). This is shared as of the second argument of the ‘invisible hand’ concept, when an individual pursuing his/her selfinterest, they tend to promote a better welfare to the society. Capitalism presume that people are basically acquisitive, individualistic, and materialistic where individual acts upon for their self-economic interest (Shaw, Barry, Issa, Catley and Muntean, 2016).

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