How Far Has Capitalism Affected the World Economy?
From the movie
Capitalism: A Love Story explains
that capitalism first brought happiness and an increase in the wealth
in the US economy. But it is mostly wealth for only the already wealthy
where they find their own profit without thinking about anybody else or
what may cause negativity towards others. As for example, the big
corporations or companies that start to
sack or
fire
workers so that the head of the companies have their own personal gain
and profit. So then, the government has to make a move on the companies,
giving help towards the unemployed people to help regain the economic
stability. But the main thought of capitalism is to gain profit and
create a more developed country in an economic sector.
One of their main thoughts (for capitalism) is to increase competition. With more competition meaning more companies in motion, thus creating economic flow that goes through the nation. Meaning, less unemployment, more salaries for families, which concludes to more spending that gives out more profit for companies. But these so called "MNC's" or corporations acted selfish, which caused Wallstreet to crash and then the total lost had to be covered by the government. One of the most vital was that unemployment had increase due to the selfishness of these CEO's. The economy had a recession and the balance of payment was outrageously catastrophic, in which no one was able to purchase anything, because everybody had to pay extra taxes so that the economy would stand back on its feet.
Furthermore, this "loss" had created a recession
and a crisis in which affected the world economy also, due to the US for
being a huge impact and world leader in economic ratings, or as they
say they are the "great powers" of the world, it crashed down pretty much
most of the world with it. Thus again for the US citizens, it was the
worse, because it meant the US had to increase tax and the citizens had
to work harder to pay off all the taxes just so the government would
have the balance in the economic flow. All due to the selfishness and
ego-ness of MNC's or companies.
In conclusion, capitalism has
really affected the world economy, for if the economy in the US has gone
down, it also affects the world too. One of which is because the WTO
and the World Bank is located in the US itself, so free trade will be
disrupted by these problems. But also, capitalism has brought many downsides that may have the
capability to one day comeback and bring down the economy, all from the
mindset of the leaders. So it seems that the world economy and the
world itself all depends on the people's ego, it is not all numbers and
calculations, politics and environments, but the people itself affects
the whole picture.
Amirul Tunggul Tarsanto
1701363976