Recent Financial Crisis
Essay topic: The recent financial crisis highlights the perils of Capitalism ‘The inherent vice of capitalism is the unequal sharing of riches; the inherent virtue of socialism is the equal sharing of miseries.’ This quote by Winston Churchill, prime minister of the United Kingdom during the Second
World War, encapsulates the idea of distribution of wealth between developed and developing nations. While developed nations work on the social theory of capitalism, developing nations follow socialism. Capitalist economies like USA, Canada, Japan, and
Germany are run by private enterprise. From transport to communication to industries, all sectors are in the hands of the private players who ruthlessly exploit resources. But capitalism seems to have worked for these economies with most of them becoming superpowers. On the other hand, in countries like India, Cuba, and Sweden which began with socialism, most of the sectors are run by the central government. Progress is relatively slow: even after 60 years of independence, India is still considered a developing nation.
Though capitalism offers the greatest potential for misuse of power, it still benefits the economy. The standard of living among the poorest in developed nations is comparatively better than that of the middle class of developed nations. If we compare these nations on parameters like food (malnutrition being the biggest problem in India and other African countries), or infrastructure, we lag many years behind these countries. It took us 20 years to construct a sea link, a project which routinely takes a few months in the US. In terms of inventions and breakthroughs or for that matter even basic necessity, capitalism has provided better opportunities than has socialism.
However the Sub Prime crisis in the US led to a global recession. This, followed by the
European financial crisis which has left most of the European economies bankrupt, has made us look into
World War, encapsulates the idea of distribution of wealth between developed and developing nations. While developed nations work on the social theory of capitalism, developing nations follow socialism. Capitalist economies like USA, Canada, Japan, and
Germany are run by private enterprise. From transport to communication to industries, all sectors are in the hands of the private players who ruthlessly exploit resources. But capitalism seems to have worked for these economies with most of them becoming superpowers. On the other hand, in countries like India, Cuba, and Sweden which began with socialism, most of the sectors are run by the central government. Progress is relatively slow: even after 60 years of independence, India is still considered a developing nation.
Though capitalism offers the greatest potential for misuse of power, it still benefits the economy. The standard of living among the poorest in developed nations is comparatively better than that of the middle class of developed nations. If we compare these nations on parameters like food (malnutrition being the biggest problem in India and other African countries), or infrastructure, we lag many years behind these countries. It took us 20 years to construct a sea link, a project which routinely takes a few months in the US. In terms of inventions and breakthroughs or for that matter even basic necessity, capitalism has provided better opportunities than has socialism.
However the Sub Prime crisis in the US led to a global recession. This, followed by the
European financial crisis which has left most of the European economies bankrupt, has made us look into