TULAYLAY, JEFFREY Q.

BSBA MARKETING MANAGEMENT

19-0273C
CONTEMPORARY WORLD
ASSIGNMENT NO. 2
Capitalism is when we have the government that goes hands-off and they will let private
businesses and consumers make the decisions, hence, the government will not be involved.
Through capitalism, the government has zero economic influence, they will remove themselves
from the economy. It’s about how the free market can regulate itself; supply and demand will
dictate what should happen and that will fix everything, a government is not needed to decide
what to do.

The issue with capitalism is that there are losers in it, but there’s also some winners. Some
people, though, have said that capitalism is too harsh, that there’s not enough winners and
there’s too many losers. Capitalism is defined by this, there are the rich people, there are the
middle class and the poor; with capitalism, the individual is in control of their own future. If one
fails then he’s done, there’s no safety net, and maybe one can figure out a way to get back up
and eventually succeed but it’s all up to the individual. The government won’t be there to
provide any support.

Capitalism is used to promise a better future and the question is if it can still achieve said
future. There are pros to capitalism and one is that it can encourage innovation; when one
business is competing with other businesses it is helpful for them to develop new products and
services that are superior to the products of their competitors and this motivates businesses to
invest resources into research and new product development.

Capitalism can allow for more freedom. In a capitalist society, the individual has full control
over what opportunities they choose to pursue. Whatever career path one wants to pursue, he
can and his only limitation is his own ability to succeed.

As for the downside of capitalism, it can create monopolies. Certain industries like utilities
are not naturally competitive over long periods of time. Monopolies have no incentives to keep
prices low or provide quality services as customers have no choice but to use their service.
 There are a lot of pros to capitalism, but then again, there are still cons to it. It’s still too
complicated to figure out if capitalism can indeed promise a better future since as what I’ve
said, there are losers in it, but there are winners as well. In my opinion, capitalism can make a
better future for those people who succeed in it—but with the less fortunate, it’s sad to say
that it’s the other way around.