CAPITALISM

 Capitalism is a political and economic system in which all or most part of means of production and distribution are owned and controlled by private individuals. In this system, private individuals play greater role than government in taking decision on what and how to produce and the distribution of what has been produced. The private individuals participate in all sectors of the economy.

Features of Capitalism

1.     Private ownership and control of all or most means of production.

2.     It is Aristocratic in such that it allows only few citizens with capital to control the economy.

3.     Competition leads to economic rivalry between firms and consumers.

4.     Profit motive is the guiding principle

5.     Labour is regarded as a marketable commodity.

6.     Government plays limited role in the production and distribution of goods and services.

Advantages of Capitalism

1.     Capitalism is self-regulating, it need no government intervention.

2.     It guarantees maximum freedom of enterprise.

3.     Capitalism encourages faster economic development.

4.     It provides people with alternative choice.

5.     It encourages economic competition among producers and consumers.

6.     It creates room for effective use of talents.

Disadvantages of capitalism

1.     Capitalism encourages few rich individuals at the expense of majority.

2.     It leads to private or individual monopoly.

3.     It create unhealthy rivalry.

4.     Capitalism creates an atmosphere of job insecurity/unemployment.

5.     It leads to inequitable distribution of income.

6.     Capitalism gives room for exploitation of many people by few individuals in the country.

7.     Capitalism leads man’s inhumanity to man.