The high graph of poverty rate and inflation in the country puts our economic system under question. The working class suffers from poverty due to imbalanced power and unequal distribution of wealth. In other words, the economic cycle is necessarily in the hands of the rich. Although, the laborers toil from dawn to dusk, the money will go to the pockets of the work-owners. Therefore, capitalism, which is our current economic system, has left no space for justice.

Government has no control over trade and economic concerns and allows the market total freedom. For example, a company may keep production levels low in order to continue charging higher prices, however, government shows no concern and it is the very laissez-faire capitalism which is rampant in our society. The owner class tends to become more and more wealthy, while the working class is dependent on the owners for their survival. This can lead to distrust and unrest, especially in situations where workers feel like they are not being paid enough or are being treated unfairly in other ways. While workers can change jobs in theory, this is only possible if there are other jobs available and if those companies do, in fact, treat their workers better. Many countries, unlike ours, have labor laws that regulate minimum wage, child labor, health and safety standards, and other areas of concern to help keep the balance of power between labor and owners a bit more even.

I do not deny the advantages of capitalism; however, in our society it will do more harm than good. The most prominent disadvantage is that the rich get richer and the poor get poorer with this system. Let me point out some more cons shortly.

Private ownership of capital enables firms to gain monopoly power in product and labour markets. Firms with monopoly power can exploit their position to charge higher prices.

Firms with monopoly power can pay lower wages to workers. In capitalist societies, there is often great inequality between the owners of capital and those who work for firms.

A capitalist society is based on legal right to private property and the ability to pass on to future generations. Capitalists argue that a capitalist society is fair because you gain the rewards of your hard work. But, often people are rich, simply because they inherit wealth or are born into a privileged class. Therefore, capitalist society not only fails to create equality of outcome, but also fails to provide equality of opportunity.

Societies which are highly unequal create resentment and social division.

Capitalist economies have a tendency to booms and busts with painful recessions and mass unemployment – the challenge which we currently suffer in our society.