The Father of Capitalism: Adam Smith
Although capitalism may be thought to be the system of progress, it’s proving to have more costs than benefits. One benefit that capitalism provides is the opportunity of innovation. Innovation is the creation of better or more effective products, processes, services, technologies, or ideas that are accepted by markets, governments, and society. Some of the many things that capitalism offers are private ownership of the means of production, and creation of goods or services for profit or income. As the history in the United States has shown, private ownership othe result
of capitalism. One liability that capitalism brings is economic inequality. It increases the gap between the rich and the poor. There’s a big income gap between the rich and the poor in the United
States as a result of American capitalism.f the means of production has not always guaranteed society and the economy to progress. However, capitalism plays a major key role in innovation. According to the U.S. Census Bureau there are approximately 311,591,917 people in the country. The diagram shown above depicts that the average income per family of 90% of Americans is $31,244.280,432,725 people make up 90% of the population in the United States. The average income per family of 0.01% of Americans is $27,342,212. This means that 30,000 Americans earn that average yearly income. This shows the huge income gap between 90% of Americans and the other 10%. Capitalism is the cause for this; in dollar terms, the rich are still getting richer, and the poor are falling further behind them. There are hardly any middle class people anymore; you are either in the elite class or on the low-economic class. Not only does this affect people economically, but it has other side effects too. A consequence of economic inequality is psychological and social problems. “… the last half century’s upward economy was accompanied by downward social trends. In the third of a century after 1960, the divorce rate doubled. The teen suicide rate tripled. The recorded violent crime rate quadrupled. The prison population quintupled” (Myers, 2007).Economic inequality also impacts the psychological and social lives of people around the world. “Countries with large income inequality and much poverty, such as Brazil, India, and Portugal, have populations that report lower psychological quality of life than countries such as Norway, the Netherlands, and Belgium, where wealth is more equally distributed. People also die younger in regions with great income inequality. People in Britain and the United States have larger income disparities and lower life expectancy than people in Japan and Sweden” (Myers, 2007). This shows that inequality affects the United States and the rest of the world psychologically and socially. If a country has a large income inequality, then the people will have a lower psychological and social quality of life. This is important and a crucial piece of evidence because its shows that inequality doesn't only affect people economically. It also affects their lifestyle and social life. There arent any significant solutions that are being executed.
States as a result of American capitalism.f the means of production has not always guaranteed society and the economy to progress. However, capitalism plays a major key role in innovation. According to the U.S. Census Bureau there are approximately 311,591,917 people in the country. The diagram shown above depicts that the average income per family of 90% of Americans is $31,244.280,432,725 people make up 90% of the population in the United States. The average income per family of 0.01% of Americans is $27,342,212. This means that 30,000 Americans earn that average yearly income. This shows the huge income gap between 90% of Americans and the other 10%. Capitalism is the cause for this; in dollar terms, the rich are still getting richer, and the poor are falling further behind them. There are hardly any middle class people anymore; you are either in the elite class or on the low-economic class. Not only does this affect people economically, but it has other side effects too. A consequence of economic inequality is psychological and social problems. “… the last half century’s upward economy was accompanied by downward social trends. In the third of a century after 1960, the divorce rate doubled. The teen suicide rate tripled. The recorded violent crime rate quadrupled. The prison population quintupled” (Myers, 2007).Economic inequality also impacts the psychological and social lives of people around the world. “Countries with large income inequality and much poverty, such as Brazil, India, and Portugal, have populations that report lower psychological quality of life than countries such as Norway, the Netherlands, and Belgium, where wealth is more equally distributed. People also die younger in regions with great income inequality. People in Britain and the United States have larger income disparities and lower life expectancy than people in Japan and Sweden” (Myers, 2007). This shows that inequality affects the United States and the rest of the world psychologically and socially. If a country has a large income inequality, then the people will have a lower psychological and social quality of life. This is important and a crucial piece of evidence because its shows that inequality doesn't only affect people economically. It also affects their lifestyle and social life. There arent any significant solutions that are being executed.