What are the 5 criticisms of capitalism and can you give an example of each?No

Capitalism refers to the system of private ownership of the capital or the means of production. This was a fairly effective system, devoid of any controversies as long as the capital or the means of production of was limited to simple hand tools. But with ownership of large pieces of land by land lord things began to change, creating the classes of employers and the employed. This relationship between employer and employed, it should be note, is not like other market relationship between buyers and sellers.

With increasing size of capital requirements the controversies and problems of capitalism have increased many fold. The main criticism against capitalism include the following.

1. Technology today typically requires requires huge investments in capital. This has resulted in a very small number of people to have over control over the productive resources of the entire society. Such concentration of power in hands of a few tends to corrupt them, who may misuse their power against the best interest of people in form of monopolistic business practices.


2. Capitalism results in great disparities between income of people owning the capital resources and others.


3. Owners of resources tend to exploit the people who do not have any independent means of production and therefore have to rely on employment for wages.


4. The employees have limited motivation to put in their best to the work they do. In this way their capabilities are used much below their potential. This results in inefficient use of human resources, in addition to reducing satisfaction people derive from thei work.


5. Capitalism also tends to inhibit the motivation and initiatives of public at large for improvement and innovation as they feel alienated from the productive system. In this way it restricts progress and improvements.