Capitalism prevailed in the major part of the world as an economic system, and adopted by most of developed and it has the following basic principles,
Personal profit motives:
In it the well fare of peoples and society as whole are ignored, and the peoples are of the view to gain more and more profit. They don’t consider the worst situation of other poor peoples and totally ignore it. Most of the rich peoples in the society does not help the poor, if they are passing their life in very bad situation and circumstances, and leave them in their worst position.
In capitalism, the motive for producing goods and services is to sell them for a profit, not to satisfy people's needs because the capitalist don’t have any interest in the welfare of the peoples of the society. The products of capitalist production have to find a buyer, of course, but this is only incidental to the main aim of making a profit, of ending up with more money than was originally invested. This is a fact you can easily confirm for yourself by reading the news about it and also by reading the financial reports of most of the capitalist countries and also about their system. Production is started not by what consumers are prepared to pay for to satisfy their needs but by what the capitalists calculate can be sold at a profit. Those goods may satisfy human needs, but in fact, those needs will not be met if people do not have sufficient money.The profit motive is not just the result of greed on behalf of individual capitalists. The need to make a profit is imposed on capitalists as a condition for not losing their investments and their position as capitalists. Competition with other capitalists forces them to reinvest as much of their profits as they can afford to keep their means and methods of production up to date. There fore the greed of capitalist increases when other capitalist making money from their production as there Is no restriction on the production.
As we will see, we hold that it is the class division and profit motive of capitalism that is the main reason for most of the world's problems today, from starvation to war, to alienation and crime. In capitalism, the capitalist making more and more profit while the working class are ignored and paid very little for their work. There fore the gape between the poor peoples of the society and capitalist class increases day by day that leads to crimes and other bade activities in those societies.
Private property:
Each and every one has their own property under this system. There is no or very less contribution for poorest. The peoples are providing very low taxes to the govt and as a result the rich peoples are becoming more and richer, while the poor are becoming poorer day after day. Each and every person, especially the rich peoples, are only looking for their own benefit that how to gain more and more income. As a result the gap, between the poorer and rich peoples, is becoming wider.
Laissez faire (free market):
In it the peoples can produce as much as they can. There are no restrictions on the productions and economic activities. It is widely assumed that capitalism means a free market economy. In this system the demand and supply are automatically generated, because there are the natural market forces. The producers are free to produce and manufacture more products and sell it in the market and receive the prices of there own choices. There fore this system is very beneficial for manufacturers and they can obtain more advantages from it. While on the other hand this system is harmful for purchasers who don’t have sufficient money to purchase the commodities for their basic needs and requirements. But the producers are in the position to take unfair advantage of such system and receive mush profit from their production, as there is no system to control the production side.
This system is still in existence in most of the developed countries like USA, UK, FRANCE, GERMANY etc. and due to the existence of such system their, the poor peoples in there countries are passing very bad life. They also want to become rich, but due to lack of wealth they can’t do it, as a result they are adopting the unfair means to get it. In this system the market forces, demand and supply, are used as mechanism for the solution of economic problems in capitalism.
As we have already discussed that it is widely assumed that capitalism means a free market economy. But it is possible to have capitalism without a free market. Those systems that are existed in the U.S.S.R, China and Cuba are really describing this system. These class-divided societies are widely called 'socialist'. A cursory glance at what in fact existed there reveals that these countries were simply 'state capitalist'. In 'socialist' Russia, for example, there still existed wage slavery, commodity production, common property, common land, buying, selling and exchange, with production only taking place when it was viable to do so.Russia continued to trade according to the dictates of international capital and, like every other capitalist, state, was prepared to go to war to defend its economic interests. Russia did it because there was an immense interest in this type of economic system. And if they did not did it there was a fear that this system would be totally removed from those countries and also in those in which the Russia was interested to adopt this system in there own countries. The role of the Soviet state became simply to act as the functionary of capital in the exploitation of wage labour, setting targets for production and largely controlling what could or could not be produced. I am therefore justified in asserting that such countries had nothing to do with socialism as I define it. In fact, socialism could not exist in one country alone—like capitalism it must be a global system of society and will operate in most parts or countries of the world.
It is also possible to have a free market economy that is not capitalist. Such a 'market economy' would involve farmers, artisans and shopkeepers, producer of goods each producing a particular product that they would exchange via the medium of money. There would be no profit-making and no class division—just independent producers exchanging goods for their mutual benefit. But in fact, it is also doubtful whether such an economic system has ever existed in this word or not. I do not think that it is a good alternative for modern society. Such a system would almost inevitability lead to capital accumulation and profit making—the definitive features of capitalism.