GD Monday – ‘Capitalism has failed’ – Week 11

You can still use our last week’s GD on innovation and India here.

You can go through all the topics in the series over here.. You can share your views on the topic in the comments section.. (All the comments/views in the discussion are being rated on a scale of 10 by our experts, along with an explanation)

This week’s topic is an important question. With the economic crisis facing the world for the last 5 years and the extra0ordinary gap between the rich and the poor, a debate has ensued whether the largely accepted economic doctrine of capitalism has failed. The chief proponents of the philosophy like the United States and the United Kingdom are struggling to create jobs and the banking industry has copped a lot of flak. What do you think? Has capitalism failed?

This is how it will work :

1) Users can post their arguments or views using their Twitter/Wordpress/OpenID accounts in the comments section below.

2) You can argue and counter-argue on the topic for the entire week.

3) The thread will be moderated by Team InsideIIM to ensure the discussion is kept relevant and is not abusive.

4) On Saturday, experts and industry professionals at InsideIIM (all ex-IIM,XLRI,ISB only) will rate each argument on the thread on the scale of 10 with some guidance.

This cannot replace the experience of the actual GD but this exercise will surely help you shape your line of thought. While we may not be able to help you here with your delivery, we ensure that if you go through these next few weeks with us on this thread you will markedly improve your content. Hopefully, there will be more substance when you actually speak in a GD after going through this exercise.

 

You can go through all the topics in the series over here

Highlights of the Union Budget are available here

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Comments

4 comments

sid90

Capitalism's viability has been seriously put into question by recent recessions and slow economic recovery. This model of market economy has destroyed our communities, democracy, our economic security and the planet we live on. For last five decades capitalism is structurally reliant on growth for its stability. When growth falters businesses struggle, people lose jobs and all hell break lose. This has gradually shifted people's mind towards growth by any measure causing short term beneficial ideas to flourish causing harm over long time. It needs to be replaced by longer sense of slow but persistent development of capital. Fixing economy is only part of the battle. We also have to confront the convoluted logic of capitalism. Global corporation with too large unmanageable bureaucracy operate outside the law, with super-wealthy people manipulating an unregulated economy. Way has to made for more localized economy where wealth is built by local people with local resources. Thus we can keep in check the amount of natural resource exploitation in a community and empower people to come up with better environmental friendly and ideas of growth. This new economy can sustain as a internet web where small industries under regional laws of intervention is integrated under a global network.

Nikil

Capitalism appears to be a failure when we look at the present condition of the economy, people and environment. The famous maxim about "maximizing individuals self interests will lead to the betterment of all the people" has proved to not hold true. The self interests have created a distraught in the economy. The moral obligation to question the acts of major business players has been missing, as the focus has always been on maximizing profits and scale of business. Every business has profits as its main focus, thereby overlooking the inherent risks and concerns that it poses to other stakeholders. We can see that all major problems present now like recession, environmental problems, inflation are the result of these actions. All these indicate the great failure that capitalism has resulted in.

sachjais

capitalism has brought us many advantages such as competitiveness , which leads to decrease in price . It has increased efficiency which has proved to be better for companies and consumer . We are talking about recession but we forget about all the development that has been because of "capatilism " and for todays conditions , many governments are also responsible as in case of greece where due to government policies debt increased .Talking in respect of our country , where bureaucracy is shadowed by corruption , would there have been so much development if there was no capitalism . Even government is seeking for partnership of private companies with public companies for better management .
Though it has certain problems like income disparity but as winston chrchill says “It has been said that democracy is the worst form of government except all the others that have been tried.’ A similar statement could apply to capitalism.
Mixed economy consisting of both private and public ownership will be beneficial for todays scenario .

sarchana

I agree with the above. Capitalism is as much essential as is participation of government in making economic policies. Capitalism may be driven by self interest but still it is creating job oppurtunities for millions. We have a good example of states like Kerala and West Bengal the policies are not much in favour of enterpreneurship. As a result there is a large outflow of working population and these states are consumer states.Whereas a state like Gujarat has a large population inflow because of the job oppurtunities created by the flourishing industries.