Demerit of Capitalism

One of the demerits of capitalism is that there is precedence of property rights over human rights. This means that in a capitalist system, the rights of individuals to own property are given more importance than the rights of individuals to basic necessities such as healthcare, education, and housing.

Precedence of Property Rights over Human Rights

Under capitalism, the accumulation of wealth is the primary goal of individuals and businesses. This often leads to the exploitation of workers and the environment in order to maximize profits. In addition, the priority given to property rights can lead to the marginalization of certain groups, such as the poor and minorities, who may not have the resources to compete in the market.

Operative Efficiency

While capitalism is known for its high degree of operative efficiency, this can also be seen as a demerit in certain situations. The pursuit of efficiency can often lead to the neglect of social and environmental concerns. For example, companies may choose to outsource labor to countries with lower wages and fewer labor protections in order to cut costs and increase efficiency.

Conclusion

In conclusion, while capitalism has its advantages, such as high operative efficiency and the promotion of entrepreneurship, it is important to recognize its demerits as well. The precedence of property rights over human rights can lead to social and economic inequality, while the pursuit of efficiency can lead to neglect of important social and environmental concerns. It is important for policymakers to take these factors into account when designing economic policies and regulations.