Capitalism which is helping benefit the business

 

Capitalism is an economic system which now
exists in a vast number of countries. This system is fairly new as it came in
existence a couple hundred years ago but it had been challenged by other
economic systems which failed in comparison to capitalism. Communism was one of
the economic systems which failed to capitalism due to many reasons including
that there were no incentives to succeed, Lack of innovation, lack of rights,
and also that creativity was not a priority in a communism society. Over the
last two centuries the poor have been affected greatly through the alternating periods of good and bad of the economy and capitalism played
a big role in this. In 1820 94% of the world was living in poverty and in 2015
9.6% of the population is living in poverty. This drastic percentage decrease
is directly related to capitalism and many countries either changing their
economic systems and opening up free markets. Statistics have shown that
capitalism is bringing the poor out of poverty and helping poverty-stricken
countries thrive. Capitalism is beneficial for the poor as it creates a trickle
down effect, improves economy through innovation, and brings the poor out of
poverty.

 

A trickle down economics is a theory that says
the wealth from the top and higher class trickles down to everybody else under
them causing the economy to grow and everybody to get richer. Capitalism has
caused this effect to take place as the wealthy and large business tax cuts are
very resourceful to the government and allow money to be spread to the lower
classes. They also create more jobs and more opportunities for other people to
make money. The number of people in the working class is increased which is
helping benefit the business and the people in need for money. For example,
India a country with extreme poverty which is still seen but to very little extant
but why? Well to put in some perspective India is ranked 7th to have
the most billionaires in the world and has a GDP of $8,662 billion a year. To
explain, in 2008 India had a GDP of 1186.95 billion and in 2016 had a GDP of 2263.79
billion. There are also statistics showing that in 2004-05 37.2% of the
population was living under the poverty line and in five years it has drastically
dropped to 29.8 percent in 2010. That means in five years there are 90 million
less people living under the poverty line with the help of the trickle down
effect. This is showcasing that the people of India have innovated and creatively
developed products and creates improvements in technology allowing them to become
rich and cause this effect.

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For a country to succeed incentives are needed
to help the great minds of the human population to innovate. Innovation has
lead many countries to success and helped many of the poor het out of poverty.

Greed is a characteristic that every person has and that is one of the reasons
why capitalism works really well. Greed is okay till a certain extent because it
can cause multiple problems which we are now facing. The rich are getting
richer and many are not willing to help the poor as they feel that they have
earned their money through hard work. This is something that is wrong morally
but can cause many sparks in the people who see others living such lavish
lifestyles. To explain, there are many stories about people who at one time
were living on the streets and our now millionaires. The hard truth is that not
everybody is born with a silver spoon in their mouths and therefore those
people have to suffer and go through conditions which are unimaginable but capitalism
is also favourable for them. There are many big business and rich people who
willing donate and help the poor not only this but there are food banks,
shelter homes, and many other places for the poor to live a better lifestyle.

The poor just like everyone have decisions to make but not everyone is fortunate
enough to come up with a million-dollar idea and become rich but with the help
of the law and rules and regulations getting jobs have become easier than ever
and therefore there should be no excuse for somebody not being able to improve
their lifestyle. Not is their just no excuse but many poor people are coming
out of the lower class going in to the higher class or going into the working
class but there is no other way around facing inequality because it is the only
thing that is helping create innovations in technology which will only be beneficial
for the human race. To put this in perspective if money was out of the equation
and everybody had the same home, equal amount of food, and decent lives well
then those decent lives wouldn’t include things like phones, computers, medicine,
and even schools because why would people want to learn when at they end of the
day their just going to have similar lives and possessions and this is also why
communism failed.