ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The capitalist system is a system whereby the rich get richer and the poor get poorer, the rich can reinvest their capital whilst the poor have to continue to work and spend every penny they have on living costs. These living costs, including utility bills and food, are profits for the rich.

Detailed explanation-2: -No, it is not true. For many decades, the myth that in a capitalist country the rich become richer while the poor become poorer has been spreading all over the world – despite the fact that a quick glance over the facts would show that the economically freer the country, the less poor it is.

Detailed explanation-3: -By assuming the autonomy of the individual, capitalism grants dignity to the poor. By affirming people’s right to their own labor, regardless of their position on the economic ladder, capitalism offers the poor the means to improve their own well-being.

Detailed explanation-4: -About Capitalism As an economic system, one of the effects of capitalism is that it breeds competition between countries and perpetuates poverty among developing nations due to the individual interests of private corporations rather than the needs of their workers.