Introduction to Sociology/Economy

Criticisms of Capitalism

Capitalism is economic and social system in which economic and social are become operational by individual. Capitalism is faithful to competition and economic principle and market spontaneously determines most economic factors like cost, demand and supply. So it looks like reasonable.

But, as competition become severe, many side effects has emerged. The emblematic phenomenon is that the gap between the rich and the poor is getting bigger. People who have money get power, and the power make capitalist richer. Consequentially, in capitalism, most part of capital was concentrated in small capitalist. When laissez-faire laws are combined with capitalist private property, oligopolistic is an inevitable consequence.

To solve this contradictions, many sociologist argue that economic system should be controlled through public policy. Cladimir Lenin said that to protect domestic economy, the country can use military power. Branko Horvat said that concentration of capital, employment and power lead to destruction of economic freedom. And many other socialist and economist are cautious about inequalities of economic factors. Some environmentalists worry about consumptive economic growth. Natural resources of the earth is limited. So , someday, they think resources would be run out.

Proponents of capitalism contradict these criticism. They argue that capitalism increases GDP and it leads to improve standards of living.