Capitalism is a Force of Progress for Business and Society Essay

Capitalism is a Force of Progress for Business and Society - Essay Example This essay declares that the societies are made up of a few filthy rich people and a majority poor. In relation to business organizations, critics of capitalism associate it with the establishment of powerful and monopolistic organizations which are said to oppress the majority less powerful organizations. Other vices that have been associated to capitalism include imperialism, materialism, unemployment as well as exploitation. This discussion explores that capitalism is defined as a system of economics whereby industries, corporations and means of production are owned and controlled by private entrepreneurs. The main objective of these owners is to make as much profits as they can. Therefore, they invest any available capital and re-invest profits. Goods and services are produced with the major objective of selling them for profits. In addition, the production is based on market economy whereby the forces of demand and supply are the once that dictate the prices of goods and services. Under capitalism, the economy is made up of competitive markets. Capital accumulation is a common feature as well as wage labour. A capitalist society is founded on the principle of individual rights. The economic freedom leads to what is referred to as the free market. No regulation or barriers to activities in the market. Capitalism allows for a competitive market. Industries can freely compete for each other. In a politica l system, capitalism is a system whereby the laissez- faire kind of leadership is exercised. Everyone is at liberty to make their own decision and achieve their own goals in their own way. In a legal system, capitalism refers to a system that is guided by objective laws. It advocates for rule of law rather than the rule of man. Capitalism as a force of progress for business and society At the end of feudal economies, capitalism found its way up the ranks and has since become a dominant phrase in the developed countries as well as some of the developing countries. Though it is may not be easily justifiable whether capitalism has been the force that single handed contributed to the success of the developed countries and business organization, it can be reliably proved that capitalism has had a significant influence to their development. For instance, capitalism allows for free markets where competition is a common feature. Competition gives a motivation for managers of business organi zations to work hard in order to win the battle over their rivals (Fulcher, 2004). The organizations will therefore strive to improve their goods and services so as to satisfy their customers and gain the competitive edge. In the process the business improvement as well as the society development will be realised. Further the free market facilitates economic growth. The prices for good and services are not controlled by any organization or any individual. The forces of demand and supply are responsible for the changes that occur in the products in the market. Suppliers and producers