Capitalism: Does It Cause or Alleviate Poverty?

capitalist economy Does it cause or alleviate impoverishment? By Zahoor Khan emailprotected com To swindle the upshot of poverty has been remained a massive challenge in the know history of human civilization for all global stinting isms of the world. separately economic ism has its own strategies to address this proceeds. capitalism tries to resolve the issue of poverty on the rump of demand supply forces.Capitalism is generally considered to be a philosophy of economic governances that favors private ownership of the means of production, population of goods or services for profit or income by individuals or corporations, hawkish 1 markets, voluntary exchange, wage labor, capital accumulation, and finance . There may be two come-at-able solutions of the issue of poverty in Capitalism. Firstly, severally individual economic agent has monetary incentives to work and perform conglomerate economic activities. Thus monetary incentives stimulate the economic agents towards the performance of divers(a) economic activities.This may be considered as an indirect solution of poverty in context of Capitalism. Secondly, individuals possess ownership rights. They give the gate possess mingled reproductive resources and charter the right to use these resources for production and consumption purposes. individually economic agent (Consumer Producer, Government) is assumed to be rational and give accordingly try to optimally utilize their resources in their best interests. Thus, this behavior works as an automatic stabilizer in the 1 http//en. wikipedia. org/wiki/Capitalism miserliness to resolve the economic issues including the issue of poverty of all masses.The in-depth analysis of the establishment reveals that both possible solutions of the issue of poverty suggested by the system argon factitious. The first solution is viable if fortunately all hatful frame part of the labor force in an economy. This solution does not burgeon forth into consi deration children, housewives, old men and women, insane, and permanently disable population that from where they can access to the basic facilities (food, shelter, hospital). The second solution is based on the assumption that all the people of the economy possess some productive resources, which is unrealistic.This assumption may be questioned in many ways From where the people will get the economic resources? What will be the way of skill of resources? All the people cannot participate in the labor force, then how these people will acquire economic resources etc. One other possible way may be the intervention of government, to take some locomote towards the solutions of the issue. This method is feasible as comp atomic number 18d to the earlier methods. Unfortunately, this method is not genuinely effective to address the issue because of many hurdles.Poverty is a multidimensional phenomenon which cannot be effectively addressed only with the help of the government. This issue requires multidimensional measures at the micro, Meso and macro take aims. The issue of poverty is considered as a social issue in Capitalism. The society, in capitalism is divided on the basis of have and have not. The upper class, the capitalists controls the entire economy on the basis of their capital while the worker class cannot own capital disregarding of their efforts in the process of production. Thus capitalists accumulate more and more wealth on the basis of their capital.This phenomenon naturally intensifies the earning gap between the two classes. The last outcome of this process will be in the form of macroeconomic evils i-e income inequality, poverty, accumulation of wealth. The issue of poverty gives sub-birth to many social and economic issues. round important of them may be in the form of income disparity, class conflict, and deprivation. The philosophical foundation of Capitalism can make it more clear that whether the system has the required potential to re solve the issue of poverty effectively or otherwise. Capitalism is based on three philosophical pillars. i.Materialism ii. Individualism iii. Hedonism. Capitalism as a living ideology believes in a materialistic world view. According to this philosophy all human needs and desires are subject to material satisfaction i-e whatever is needed/desired will be satisfied in this material world because there is no concept of the world hereafter. So unlike an Islamic consumer, a capitalist consumer will be always conscious about his material inferior and will therefore try to spend all his money on material commodities. The second important element of Capitalisms philosophical foundation is individualism. Individualism refers to ndependent behavior of economic agents to accomplish their economic goals. According to this concept all peoples interests are case-by-case from each others. Each individual has to work for his own in-person goals. Thus, the resulting outcome of this behavior wil l be in the form greed, fainting about others rights, immorality in business practices, weakness of social bond etc. The last foundation of Capitalism, as a living ideology is Hedonism. Hedonism refers to a philosophy where ones blend in pleasure seeker and self-centered while to accomplish various goals. Hedonism is the licit consequence of Individualism.Looking into the philosophical foundations and ideological structure of capitalism it seems that the capitalism is a byproduct of human reason which promotes individualisms, self satisfaction as a supreme priority, greed, swoon about others rights and unconsciousness about the overall welfare of the society. In the light of these logical consequences resulting from the Capitalism, The system will ultimately worse off the poor and marginalized people, followed by the change magnitude gap between the poor and rich and thus the extreme level of living standards and provision of many social and sub-economic issues