Arguments Against Government Intervention

Foremost as Government intervention is kept at a limited level several issues that generally arise with government intervention including corruption, lack of a self-interest push force and poor circulation of information within the market is prevented allowing individual incentives to work as hard as possible to achieve as much as possible.

As the capitalist economy is dependent on the push factor of individuals, there is no limit to the level of wealth an individual can assume late through progression within the economy.

Capitalism allows individuals choice both in commodity purchase and employment opportunities. It allows resources to be distributed according to consumer choice rearing the market in a more productive consumer friendly range.

Through capitalism firms are inclined to produce with greater efficiency, by cutting cost and improving efficiency becomes an aim to prevent losses in an industry where competition is high bettering the economy as a whole [10] .

In such industries company effectively respond to changes in consumer

desires better the economy and improving efficiency. In attempts to ensure the highest possible level of productivity, financial incentives are provided to employees by companies so as to better improve self interest in company proficiency. This is beneficial on a global level as these countries generally become exemplary innovative fronts for improvement in technology and implications of productive changes.

As company proficiency improves so does the ability for people to move through social class as an increase in wealth is available. This pushes individuals to work harder in the interest of self-preservation to achieve more. Profit increase within the economy and personal industry, allows an expansion in wealth and company resources, resources that will be used so as to best benefit the company and in turn the economy by promoting foreign investment.

Individuals possess a freedom of choice to purchase and engage in virtually any and all economic activities with little restraint. Promoting trade among nations and individuals that will mutually profit persons with and the economy itself.

Profit maximization is a main priority within the capitalist’s state; this can be produced via meeting consumer wants. This causes large suppliers of goods and services that are similar diversification in brands allow for customer distinction and individuality, catering for the necessary changes in desire for certain goods among the lower and higher income classes.

Over the years capitalism has evolved.

Starting with the bartering system which led to slavery system, then the Feudalism followed by mercantilism then to capitalism. It was suggested by the classical school of economics that government role should not be removed from economic system but, its role should be limited only to protect individual rights and providing public goods and services. History reveals that government is necessary and its role has expanded. We cannot deny that without government intervention we would have fail. With government intervention capitalism has develop over the years. Government involve in the form of nationalization, welfare and fiscal policies and minimum wage laws which adds to the development of capitalism. In the world today pure capitalism is not practiced but rather a mix economy by former capitalist states like the United State where government plays a more important role in market

decisions.

Even with consistent conflicts between upper and lower class, capitalism has survive. It survives from the elite’s desire to remain in control of the means of production and, therefore, wealth. It causes exploitation between classes (the elite benefits at the expense of labour from the lower class) and was self-seeking since persons seek their own self-interests, regardless of the effects their actions have on others. This system found ways to suppress the working class and keep the bourgeois in dominant position in society.