drawbacks of capitalist economy
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Answer:
However, like everything else capitalism has its disadvantages such as negative externalities like pollution and diminishing non-renewable resources; a disproportionate distribution of wealth or income; and high unemployment rates and economic instability due to the cyclical nature of the capitalistic system.
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List of Advantages of Capitalism
1. It is the dominant economic system in developed countries. A lot would argue that there isn’t any country in the world that practices a true form of capitalism. While that may seem to be the case, there are a number of countries that employ some form of capitalism, and these include: the United States of America, United Kingdom, Canada, Australia, Japan, Switzerland, Singapore and Spain – that’s just to name a few.
2. Some tenets of capitalism are cornerstones of representative government. Capitalism rose when the system of feudal economies ended. It has since grown to be a dominant economic system, particularly in developed countries around the world. There are specific tenets of capitalism like property rights which supporters believed to be cornerstones of representative government. In addition, wage labor – another tenet of capitalism – can be counted in this regard.
3. It is linked with economic growth. In a capitalist system, the production and price of goods are determined by the market rather than the government. With private property rights, private individuals are given the freedom to create the goods and services to sell in the market.