“the Only Economic System That Is Morally Defensible Is Capitalism”. Discuss.

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“The only economic system that is morally defensible is Capitalism”. Discuss. Capitalism is an economic system in which capital assets (such as property) are privately owned by people or an individual, not by a government or communities. Goods and services are produced for profit in a market economy. Capitalism mostly has a "free market" economy, which means people buy and sell things by their own judgment. Opposingly, socialism is an economic system characterised by a kind of society where people work together to get a fair standard of living (TheFreeDictionary, 2013). Socialists believe capitalism is bad for society and the government is responsible for reducing it via programs that benefit the poor such as free public education, free or subsidized healthcare, higher taxes on the rich. In contrast, capitalists believe that government does not use economic resources as efficiently as private enterprise and therefore society is better off with the free market determining economic winners and losers (Diffen, 2013). In capitalism, the market determines price, including the price of labour. For example, footballers or company chief executives are paid a thousand times more than teachers because people believe they have unique talents which are worth paying for. This is all part of a dynamic capitalist system which values individuality and rewards ability and risk-taking. However, critics argue that the system as such is unjust and the cause of misery and poverty to mankind because the rich get richer, the poor get poorer (Debatewise, 2013). In capitalism, consumers get the freedom to choose and purchase the goods and services they desire using dollar votes. This will drive firms to compete against each other by lowering the price of the goods and improving their goods and services. In order for firms to maximise profits, they must use resources efficiently. However,

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