One world, 195 countries, varied cultures, several languages, diverse gastronomies, but above everything different and multiple economic systems, which are in charge of leading the world, with their rules, policies and politics, marking the contrast among countries in the world. We have several examples of how every economic system resulted for each of them, even though we don't have the reasons why the results are not alike. Why does capitalism work for some countries but not for others? The same economic system but completely distinct outcomes? Being aware of the economic system your country manages helps you to understand what governors are doing with the economic resources, or if it's the way it should be, if the results are the best for the people, yet it can also help you discover what a poor management system your country has.We must be able to identify the problems in our country, so we can be able to fix them. The future of the world depends on us, and the first step to build a good future is to have a healthy economy in each country.
Good morning everyone, my name is Juliana castro and this is:
“Is capitalism a harmful or beneficial economic system?”
Now, let's talk a little bit about capitalism. Does anyone here know what capitalism is? raise your hand please if you know (15 secs). Capitalism is an economic and political system in which industries and trades are controlled by private entities, companies, and individuals, contrary to socialism. Does anyone know what socialism is? (15 secs). Socialism is basically opposed to capitalism, all the industries and trade are managed or regulated by governments, believing in the people as community rights, rather than the individual’s ones.
So here comes the question most people ask while talking about economic systems, is this a good economic system? Usually people start making graphics and lists about the pros and cons of capitalism, or socialism but in my case, I’m not gonna show you those boring graphics so you could sleep while I’m presenting. No, because it isn´t the economic system, it is the country. Now you must be wondering, what is this girl talking about? Capitalism has worked for a lot of countries even though in the ones it didn’t were just unlucky or whatever, but the real reason why capitalism wasn’t successful for some countries is because they didn’t manage it well, they didn’t exploit the 100% percent of benefits capitalism could offer to them.
The effectiveness of capitalism depends on the strength and efficiency of a country’s institutions. Effective legal and regulatory systems, property rights protection, and contract enforcement are crucial for a well-functioning capitalist economy, that is the reason why countries with weak or corrupt institutions may struggle to support a capitalist system effectively.
Let's discuss some examples so you can fully understand what I’m talking about, so for a country in which capitalism worked perfectly we have Singapore, a very powerful economically speaking country. And why is that? It is because Singapore has built a very healthy economy through attracting foreign investments to their country, introducing proactive economic policies, and improving their infrastructure and education, all of these possible thanks to capitalism. But as rich as Singapore is, there are some capitalist countries with the opposite economy, such as Haiti. With this country we can clearly see the other side of the coin, taking into account the poor economy situation that is taking place on this country, one of the main reasons for haiti’s economy is the extreme social inequality, and the exclusion from decision-making processes and power, and increasing vulnerability to disasters and conflicts inherent to systemic socio-political instability.
Now let’s get deep on that, Social inequality. What does that mean for you? I’m going to ask one person so please raise your hands, (person answers blah,blah,blah 25-40 secs). Social inequality is the existence of unequal opportunities and rewards for different social positions or statuses within a group or society. Many people say capitalism is the main cause of social inequality, but let me tell you it isn’t. Let me explain myself, capitalism gives us the opportunity to create companies. Those companies have their owners to say it like that, and the people who work for the companies, that is one benefit from capitalism, which is also necessary because, for example, if everyone were millionaires then restaurants wouldn’t have waiters. Although capitalism doesn’t imply what to infer or understand from those positions at work. Again this actively demonstrates that it’s not the economic system but the people who infer from different positions at work, home, or social circle, that the richest and most powerful, the better person, the one who enjoys the most benefits and rights of society and the most opportunities you get.
To address these challenges, we must strive for a more inclusive and compassionate form of capitalism. This involves implementing policies that promote social safety nets, equitable opportunities, and responsible corporate practices. By fostering a fair and level playing field, we can ensure that the benefits of capitalism are shared by all members of society, rather than concentrated in the hands of a few.
HUMANS CORRUPTED CAPITALISM, from every point of view, as they do with every good thing in life. As you can see again, the countries where capitalism worked perfectly are the ones with the lowest corruption percentage such as Singapore, which is the 5th least corrupt country in the world out of a list of 180 countries, but in the same list Haiti was scored as the 171th most corrupt country. We can see repeatedly that it is not the economic system, it is not capitalism, it is the management the country gives to it. We are in a world, in which people say “Aquí gana el más vivo” and with that pretext they corrupt everything they can, to their own benefits, even more if we are talking about money, and politics. Two things that are extremely related with capitalism and the rest of economic systems.
To sum up everything that has been stated so far, there is no such thing as a harmful or beneficial economic system, what really matters is the management the country gives to it. This presentation wasn’t to force you to believe in one economic system, it was to inform you about the truth in our world, how things or systems like capitalism get corrupted in some countries. The world is full of different countries with diverse economic systems, several opinions, and nearly 8 billion people in the world. Capitalism, with its inherent dynamism and potential for wealth creation, has been a powerful engine of progress. However, it is our responsibility to harness its strengths while addressing its shortcomings. By promoting a more inclusive, compassionate, and sustainable form of capitalism, we can build a society that combines prosperity, fairness, and environmental stewardship. Let us strive for a future where capitalism serves as an anchor for human flourishing and worldwide well-being.
Thank you very much for your attention, this was: Is capitalism a harmful or beneficial economic system? By Juliana Castro Martinez
