Advantages of Capitalism• Internally it is a stable economic system, because it is consistent with human behavior. People understand that life is not fair - there's no "free lunch". You have to work to survive and only the lucky who manage to thrive within the socio-economic matrix make it to the top. As long as there is a belief/hope that one can advance in the system, there is an incentive to participate. • It is also externally stable system, because in a capitalistic system requires innovation and flexibility to keep up with the changes in supply and demand. Such a system is generally prepared to deal with the influx of competition from external sources. When ever any changes occurring in demand and supply this system has the capacity to modify itself with these changes. • Large populations are likely to be diverse, which is beneficial to healthy capitalistic systems. • Large, diversified societies tend to gravitate towards hierarchical social systems; capitalism easily adapts to such structures. • It is very beneficial, especially for capitalist, who have wealth. And, also, those who has the capacity to control this type of system.
byNadeem Khan Khattak
•
0
Tags:
Islamic Banking