Open Competition in Capitalism Encourages Economic Growth

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It is argued that there is a negative impact of capitalism on the environment and the ever declining natural resources in an economy, in turn will lead to those resources becoming more valuable. This will lead to more capital being generate as these resources continue to dwindle. Taking another perspective this can be seen as a good thing as well.

This extra capital generated would be beneficial in terms of research and development into new technologies and methods of doing things that would create a more sustainable way of doing things and in the long run be more beneficial to customers, businesses, the environment and protect theses resources in the long run.The competition between people and businesses for these resources may promote the ingenious idea that could solve dwindling resource problems and the extra capital because the price has risen should be reinvested to help better the situation.

The competition between companies benefits consumers as it makes products more affordable, and capitalism’s competitive atmosphere is a stimulus of encouragement for people to work harder to achieve one’s individual dreams. One could argue against anti-capitalists’ concerns in relation to oppression and inequality by taken the view that the wealthy are rich because they are more productive than their fellow poorer counterparts. This places a considerable importance on the individual, rather than the society as acollective, it is a classic hallmark of capitalism and is at the centre of the “pull yourself up by your bootstraps” mentality that inticess capitalists .

Anti-capitalists would argue that capitalism promotes people to compete to have bigger shares in the market to have bigger profits to be greedy and thus creating monopolies. Who can make the most profits. Is that what greed really is? From a capitalist perspective entrepreneurs react to the needs and wants of others. This in itself in not what greed is about it shows the term “greed” as wanting to help others.

Businesses and companies compete with one another not for greed of profits to line their own personal gain but to boost profits to have capital to invest in product development, research and development and personal and other areas of one’s business to make it the most optimum it can be to produce goods and services that have a competitive advantage over its competitors, to give the customer the best product that meets one’s needs and wants. Competition offers customers the freedom of choice as to which products and services they desire.

Other economic systems such as communist takes this choice away for them. This will reduce competition between business and in turn it is greed for profits to line one’s own pockets rather than innovation and development driving the economy this can cause monopolies within the economy.

One of the greatest advantages of capitalism is a decentralized economic system. In today’s economy, people are more susceptible to more alternatives in business. They are exposed to competition and have to face the challenges to compete in the market and overcome these challenges to progress. As a result of having open competition in the market, capitalism encourages economic growth. In a communist economy the spur of competition isn’t there or is withheld from people. It’s like a vicious cycle of the lack of competition which leads to no changes in curcumstaies, slow to none in development of product and technologies.The lack of competition removes people’s opportunity to seek and realize one’s dreams.


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Open Competition in Capitalism Encourages Economic Growth. (2021, May 12). Retrieved from https://samploon.com/open-competition-in-capitalism-encourages-economic-growth/

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