Capitalism is a system of economics under which ownership of production and distribution depends chiefly upon corporations and private individuals.
In the long-range account presented in “India in the World Economy”, Nehruvian India emerges as a blip. Thirty-odd years later India opened up again to foreign trade, thus returning to its capitalistic roots. The success of the new economic regime built on two ingredients, one old and one new. But it also drew strengths from post-1947 developments such as the green revolutions and the pursuit of democratic and representational politics.
We cannot say, however, that the Indian economy today bears no resemblance to the economy of several centuries ago. The cleavage between the agricultural interior and the cosmopolitan and outward-looking commercial towns continues to be deep, as in the past, and their politics remain divergent. Indeed, that misaligned politics is a source of uncertainty for economic policy and for the future of liberalism in India.
We have long moaned and groaned about crooked Indian businessmen who inflate profits, hide liabilities, manipulate markets, and break a hundred laws. But the US scandals show that crooked businessmen exist everywhere. They indulged in fictitious sales to one another to create the illusion of a boom in revenue. Big oil companies are being investigated for rigging petrol prices. Crooked behaviour is not uniquely Indian or American. It is inherent in human behaviour, and can reach great heights in a capitalist system.
Businessmen seek to enrich themselves, not society. But competitive, transparent markets force businessmen to compete on a level playing field, because of which the main gains of all their innovation and enterprise go to consumers. No wonder they find the profit motive a morally unacceptable basis for ordering an economic system .Winston Churchill once said that democracy is a very flawed system, but all the others are so much worse. The same is true of capitalism: it is a very flawed system but the others are so much worse. all political parties hide their political liabilities and exaggerate their political assets? politicians in a democracy also claim to represent the national interest while feathering their own nests.
There are many criminals in business. There are many criminals in politics too. The use of money, muscle and influence to sabotage rivals and competition is a feature of democracy no less than of capitalism. Why, despite all this, do we regard democracy as the best political system? Because it is grounded in choice for the ordinary man, and freedom to choose is a paramount virtue that makes other freedoms possible. Capitalism creates a market for material goods. In both cases, the freedom to choose gives the ordinary man in the street greater power than the biggest political or economic giant. By shifting his vote, the ordinary citizen can oust the most entrenched politician, and by shifting his custom he can bankrupt the most entrenched company.
capitalism lets an individual to his free will. This clearly implies that socialism is a breach of human rights and freedom. To ensure human rights we must employ capitalism.
There are problems with capitalism too. Individuals can thrive natural resources, the increase in the gap between rich and poor.But this can be controlled by natural resources.Natural resources are those which belongs to everyone.
Government should give subsidies to those who are really poor. A developed country is a country in which citizens are well developed. If citizens are reluctant for development, government can’t develop. When government is giving subsidies poor people are very happy to live like poor. So it is left to the poor whether to leave their poverty by working or not. If they can’t work, government is still giving them subsidies, they can use the previliges but they must not remain in poverty so long.
The most important of all that government must do is to educate its citizens about their rights and law.
Socialism + Democracy is joke but Capitalism + Democracy is an act of preserving human rights. Indian system (mixed economy) is a good system but it must be more capitalistic to be executed effectively.