‘Capitalism benefits everybody’: discuss with reference to contemporary interactions between business, society and government policy in Australia.
Capitalism is an economic, social and political system in which the property, industry and business are owned corporately (Rand, A). This enables the organizations and individuals to maximise their profit. Capitalism mainly benefits businesses and governments however it completely overlooks the social aspect of the Business Society and Government (B-S-G) triangle. Society was not aware of the fact that capitalism was giving the idea of a free market where everybody was equal treated which allows the organizations to maximise its profit. As a result, capitalism has a very small effect on the society. A research shows that gender discrimination in developed countries is not as critical as in the developing countries which shows that capitalism does benefit the society. Although capitalism has some ethical and social dilemma in the B.S.G triangle, it still benefits the society through minimum wage which grants a better quality of life for the society.
It is important for the government to develop its economy as it could improve the society, the more money the government has the more benefit it brings to the society. The government could improve the quality of education and quantity of school, apart from that the government could also improve the welfare of the whole country (Nunno, R, 2010). Most of the developed countries adopt capitalism to improve its economy while the developing countries do not have capitalism and often falls into poverty sector because of the shortage in economy.
Capitalism does have some benefits on the society but it mainly benefits the governments and the organizations. The separation from and reallocation of power is considered as a disadvantage to the society as it can create monopolies. As a result, it affects the society which leads most of the individual`s from the society into the poverty sector. Capitalism does not benefit everyone in the society, but it strongly benefits the businesses that holds the wealth and the power. Capitalism fails to meet the needs of society, as the organizations are only interested in making profits. This often leads to unethical business practises as there is no government interference within the organization.
Capitalism does not benefit everyone, it only benefits the businesses and the governments. While looking at the B.S.G triangle, it clearly shows that capitalism fails to meet the needs of the individuals in the Australian society. This can be seen through the conflict between Coles and Woolworths. The two leading supermarkets in Australia has the power to determine their own pricing strategy for basic needs such as groceries. The use of this pricing strategy affects the society as well as the economy as the society don’t have any other alternatives rather than to cope with this pricing strategy and purchase the good as it could be an everyday need.
The issues with capitalism is that it only goes where there`s profits to be made. This is why it has a negative impact on the society and benefits the organization and the government. I believe that capitalism does not befit everyone, it only benefits the organizations and the government. Capitalism is arguably one of most productive economic system ever introduced by a human history. However, it does not benefit the society instead it strengthens the organizations and the government. In order to benefit the society, it is important to concentrate on the broader set of legal, political and economic institutions in the country. This improves the economy system and will also shape the structure of the society.
Word count: - 576
References: -
1. Nunno, R, 2010, ‘Top 10 Greatest Benefits of Capitalism’, viewed on 29 March 2016, available from:- < http://listverse.com/2010/12/24/top-10-greatest-benefits-of-capitalism>
2. Rand, A, ‘WHAT IS CAPITALISM?’, viewed on 29 March 2016, available from:- < http://capitalism.org/capitalism/what-is-capitalism/>
