Capitalism has guided a world economy to unprecedented prosperity. however, it often encourages short sightedness and contributes to wide disparities between the poor. in this light, would it be correct to believe and adopt capitalism for bringing inclusive growth in india? discuss.
Answers
Capitalism refers to the concept pf using emerging technologies and machinery, this is what mainly brought about the Industrial revolution, i..e moving from labour intensive to capital intensive production process.
Indeed this helps to increase the productivity, cut costs through technological economies of scale, more standardization and high quality work. However, where use of this leads to positive outcome simultaneously some negative outcomes had to be faced too. Those included the short sightedness and wide disparities between the poor.
However, in the case of India it has been witnessed that now there are a wide range of people who have the skills and ability of handling technology. Yes, using capitalism furthermore for the growth may cause issues for the public. But via expansion only can the production possibility curve shift outwards and be able to create/ generate more jobs for the needy. Subsequently, if this problem wants to be avoided the government may start awareness skills programs and teach the basics to people. And for the labor, try to give them induction training to help them be able to work.
If the government expands they may provide some allowance to the unemployed employees which may help them. So there needs to be a limit to which capitalism should take place.
in this light, would it be correct to believe and adopt capitalism for bringing inclusive growth in india? discuss.
Capitalism has got more harm than good to our economy. It widens the gap between the poor and the rich. The bourgousies own the machines and the technologies while on the other hand the proletariat own the labour; the ruling class own power on this matter and they definitely will side with the bourgousies to undergrade the proletariat who are oftenly many in number. this will distabilize our economy hence it should not be adopted.
vic