Economy, asked by mukkawarag3562, 1 year ago

What is the disadvantage of the capitalist economics system of production to the masses

Answers

Answered by seemajain0008
1

Answer:

Focus on profit: The obsessive focus on profits leads to social and economic inequality. The population that controls the means of production tends to accumulate more wealth than the workers who helped to create those riches for the wealthy. Since rich families can pass on their wealth to their heirs, the rich get richer and the workers stay poor.

Financial instability: Financial markets go through periods of irrational exuberance, causing boom and bust cycles. During a long recession, people can lose their jobs, have their houses foreclosed and suffer a decline in their living standards.

Monopoly power: Because capitalism is a free market, it is possible for a single firm to become all-powerful and dominate a market. When this happens, a company can charge whatever price they want, and consumers have no choice but to pay higher prices.

Workforce limitations: In theory, the factors of production should be able to move from an unprofitable use to a profitable business. But this doesn't work for the labor force. A farmer who just lost his job cannot hop on a plane and fly to a big city to take a job as a waiter.

Neglect of social benefits: Private companies don't really care to provide social benefits such as health care, public transportation and education. None of these areas make a profit. So, the government has to step in to provide these services.

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