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About capitalism:

  • Capitalism is an economic system in which capital goods are owned by private individuals or businesses.
  • It is indirectly based on supply and demand in the general market.
  • The purest form of capitalism is a free market.
  • Capitalism is simply a process by which resolves the problems of economic production and resource distribution.

The different types of Capitalism are:

  • Turbo-Capitalism:

It is an unstructured form of capitalism. It is loosely bound on the concepts of deregulation of financial states and the procedures to lower tax on high earners. Turbo-capitalism involves:

  • The absence of regulation of finance system.
  • Minimising the regulation on monopoly power.
  • Lowering the income taxes rewards high returns.
  • An unstructured labour market.
  • Responsible Capitalism:

It is the market economy with some prescribed amount of government regulation. This is done to avoid excess inequalities in capitalisms. Responsible capitalism involves:

  • To protect the people who are not employed or public with low incomes.
  • Managing of the tax system with employees earning high and paying a high percentage of their income to pay the funds for the government.
  • The government takes the responsibility for social benefits such as; health care, education, public transport.
  • To organize the monopolies and to protect rights of the employees of the respective companies.
  • Popular Capitalism:

Popular capitalism would impose the methods to regulate the financial sectors to prevent risk taking and inequality within the firm. With Capitalism assignment help you will study more about the types.

  • Crony Capitalism:

In this situation, a successful business is related to the strategically influences. China, South Korea uses this type of capitalisms.

  • State Capitalism:

The government plays a key role in planning State capitalism. It occurs when state governed companies play a prime role in the market economy.

Pros of capitalism:

  • Political freedom is led by Economic freedom.
  • The efficiency of the firms in the states increases.
  • Capitalism creates a climate of innovation and economic expansion.

Cons of capitalism:

  • Private capitalism enables the firms to gain monopoly power.
  • Firms with monophony power, pays lower wages to workers.
  • Social benefits can be ignored by the firms.
  • Inherited wealth and wealth inequality.
  • Inequality creates social division.
  • There may be a tendency of painful recessions and mass unemployment.

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