Capitalism is a social system based on the principle of individual rights. Politically, it is the system of laissez-faire (freedom). Legally it is a system of objective laws (rule of law as opposed to rule of man). Economically, when such freedom is applied to the sphere of production its’ result is the free-market.”
It is an ongoing debate on what capitalism does for the economy. There are many political opinions in favor of capitalism as it brings in huge amounts of money. But as with any political view, there is also strong opposition. Capitalism deals with the concept of supply and demand; if the market expands, then these businesses will produce more jobs. On the contrary, when the market contracts, there are less jobs and unemployment spikes. As capitalists’ main concern is their profit/loss - not the concept of creating jobs for the economy - there is no hesitation to cut down staff in a time of crisis.
Are these businesses really at fault for cutting down job numbers and leaving millions unemployed? This is definitely questionable, but in a way, this is actually doing the economy a favor as it influences people to work for themselves. Job security is a thing of the past, and with many workers wise to this fact, it is evident that becoming self-suffcient (self-employed or setting up a start-up business) is the only way forward.
When a company isn’t employing anyone, it is considered a non-employer business. These companies are easy to establish and can provide a great source of income. 75% of US businesses are actually non-employer businesses. These businesses brought in revenue of $989.6 billion in 2011 and revenue has increased by 4.1% since 2010. By cutting down on jobs and sky-rocketing the unemployment rates, big businesses are actually forcing individuals to come up with a way to support themselves by their own means (or as Orson Scott Card put it in the title quote, ‘plant a garden’). This raises the number of startups, and potential successful businesses. This is exactly what the economy needs.
Studies have shown that capitalist countries like the US are happier than non-capitalist countries. Those who argue for a socialist country are ignoring the fact that socialism has been proven to cause overly capable individuals to become de-motivated. When all working for the same thing, individuals of different levels of knowledge and motivation will be operating at their lowest, because either way, they will receive the same benefits. Being forced to create individual businesses, while employing less, could secure indefinite growth for the revenue of individuals. Becoming self sufficient is proving to be the only way to survive this economic rollercoaster, and capitalists are securing our seatbelts and compelling us to make the most of the ride.
The real question I’m posing here is; In this current economic situation, do you think self employment is the way forward? It is of course questionable whether an increase in the number of self employed individuals will create more successful companies and bring more money into our economy. However, since the government has proved (especially in light of the shut down) how unreliable they really are, is unemployment capitalism’s blessing in disguise? Please share your comments below.