Economics and politics are two closely related concepts in
the structure of a state. It is the poverty that defines a government’s
failure. The two most prevalent economic structures in the world are the
socialist and the capitalist economies. These are the two opposing schools of
thought in economics but none of them exists in its pure form.
Pakistan has a prevalent capitalist economic structure which
does not seem to be working well if we look at the current poor economic
conditions. The inequity in distribution of wealth argued by the belief that trickledown
effect is essential for economic growth, private business ownership, monopoly
power price control and unemployment are the defining features of a capitalist
state. All of these features are quite visible in our state and are the reasons
why we have huge everyday political debates and talk shows over this matter.
The world sees our economy as rapidly rising due to
capitalism, but what people of the state see is richer getting richer and poor
getting poorer. The biggest trouble however is that we find no solution to the
betterment of our condition. But the truth is that such a state cannot be
controlled unless we focus on all aspects of our political and economic life. Better
government, honest leadership, improved economic policies and people-oriented
structure is required by Pakistan. Once the transfer of focus shifts from the
ruling and elite class to the poor and ignored ones, our nation will be better
off.
The rich is getting richer and the poor is getting poorer not because capitalism is incorrect in its theory. This problem prevails because of an ineffective tax system. In Scandinavian Countries, who are capitalist in nature, ensure the minimization of this gap by a properly functioning tax system.
ReplyDeleteThe idea of capitalism is essentially one in which those who have the means to produce and expertise to allocate the resources that their disposal succeed and others are left behind. Therefore, in my opinion, at least to a certain extent class formation and evident class differences are inherent in the capitalist ideology.
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