One of the distinct characteristics of the capitalistic economies is the price mechanism. This is in the sense that capitalistic economies are influenced by free markets where the effects of pull and push of the demand, versus the supply affects the prices that are in the market.
We will write a custom Essay on Critique of Capitalism specifically for you
301 certified writers online
The advancements by Friedman in support of capitalistic economies as the best way by which economic decision can be made with regard to morality and efficiency that have been supported by various other scholars; however, a few economy experts have differed with this opinion, and critiqued capitalism as the best way that economies may be managed. Various arguments against capitalism have been raised in this paper. This paper would analyze this other thought and justify the argument that is found to be more convincing (Ingham 43).
Critique of Capitalism
Galbraith says we have fetish economy. In other words, there are so many obsessions among the market players in today’s capitalistic markets. This is to say that the capitalists do not regard to the processes but the result. The business decisions and actions are not based on the common good of all the market but for the business stakeholders involved in the business.
Indeed, as Galbraith says we have fetish economy. Business people are obsessed with business and they would do everything at the expense of anything to ensure that they maximize their profit margins. The morality of maximizing returns at the expense of the masses leaves many questions unanswered. This is because previous studies of today’s MNC in large economies have revealed that they make large profits, while people suffer with regard to the costs by which they can purchase economies.
Perhaps, the greatest challenge of capitalism is the fact that the global market is controlled by a few large companies which dictate the decisions the intermediary companies may undertake in their local countries. This leaves the consumers of products at the mercies of a few and, thus, the basket for the rich keeps bulging, as the one for the poor gets empty each day that goes.
It is a fetish economy characterized by the rich, who control the factors of production being obsessed by money and, thus, can do anything to increase their profits as the poor consumers are left languishing and struggling to keep the changing times and costs.
Lindblom brought up the problem that advertising comes with regard to influence it has on people’s buying decisions. In most capitalistic economies, advertising plays a crucial role in influencing the consumers in making many decisions, and more so in making buying decisions. This is one of the follies of pure capitalistic economies. This has a negative implication to the consumers, since they will not be directed by their own informed decision but the decisions made by the manufacturers themselves (Pamuk 52).
It is absurd that consumers have to make buying decisions based on the exact advertisements provided by the producers of the products, though that is what happens in most capitalistic economies.
Lindblom critiques the capitalistic economies, claiming that the capitalistic enterprises are often involved in creating artificial wants by employing advertisements and, thus, they make business by exploiting the minds and the decisions of the consumers. In my view, capitalism is not an expert system that should be used to run economies due to the nature of the variables involved in its operation.
All in all, capitalism has various benefits though it cannot go without criticisms. Looking at the global markets we have today, capitalism has spread almost in every corner of the world. The consequence of this is the increased challenge that we experience today. The paper has pointed out the core flaws of capitalism as the controlled pricing system and use of advertisements to tune consumers buying decisions.