Understanding Of The Theory Of Capitalism †MyAssignmenthelp.com

Question: Discuss about the Understanding Of The Theory Of Capitalism. Answer: Summary of the resource The article focuses mainly on the concept of capitalism and thereby makes a point for the better understanding of the concept through the evaluation of the theory. The better understanding of the theory of capitalism is based on the principle of the economic and the political system in which the private owner controls the countrys trade and commerce for profitability. However, there are arguments and counter-arguments that affect the growth of the capitalism in the market. The article has also enumerated the statements of Adam Smith in support of Capitalism. It has helped in the understanding of the prospects of the theory based on the requirements of the market. The major conflicting argument of the theory is based on the inequality that it creates through the concentration of capital in the hands of a limited amount of people. The article enumerates the criticisms on the theories and thereby undertakes steps in order to maintain the paradox of the concentration of the resources in the hands of a limited number of people. It also helps in the understanding of the competitive nature of the markets. The ill effects of capitalism are being discussed in this article in order to understand the various aspects of the change in the market due to the application of the capitalist theory. Response The major aspects of the capitalism are based on the separate legal entity that is being held by the companies which helps in determining the progress made by the same. On the other hand, Esping-Andersen, (2013) stated that the application of the socialist economy with the power and economy divided equally will be affecting the competitive advantage of the nations in the market. I believe that the capitalist economy helps in the rising GDP of the nation. Therefore, in certain cases, the capitalist mindset of the nation helps in the development. However, according to the study, the competitiveness always does not pay as it affects the livelihood of the inhabitants of the nation. Nevertheless, the question is does the Capitalism help in bringing forth improvements in the lifestyle of every individuals in the nation? To this, I believe that the inequality that is being created through the application of capitalism has brought about changes in the structure and the functioning of the nat ion. Gunster (2017) stated that the proper understanding of the different aspects of the theories of capitalism has brought about economic changes in the nations. However, the theories have helped in determining the human nature, which determines the demand of the inhabitants (Gray, 2015). Therefore, I can state that the capitalist mentality might bring in changes in the industrial sectors of the economies, but it certainly does not bring in any change in the lifestyle of the people of the nation. References Esping-Andersen, G. (2013).The three worlds of welfare capitalism. John Wiley Sons. Gray, J., 2015.False dawn: The delusions of global capitalism. Granta Books. Gunster, S. (2017). This changes everything: Capitalism vs the climate. Schumpeter, J. A. (2013).Capitalism, socialism and democracy. Routledge.