What are the advantages and disadvantages of capitalism?

Edwin Castillo, Tanauan City: In capitalism, it pays to be rich because you don’t have to moderate your greed to earn more, while the poor have to work hard in order to get out of their misery.  

Jose Fabello Jr., Cagayan de Oro City: Capitalism rewards the one who works hard enough to see his pot of gold, but many people do not care to see if there is a rainbow, pot or no pot. Most are content to just eat and live.  

Sad to say

Josh Pacatang, Dipolog City: The advantage of capitalism is that the capitalistentrepreneur pays his taxes after he is able to hide a big portion of his profit. Its disadvantage, compared to socialism, is that the taxes he paid build roads for the use of even those who didn’t pay their taxes.  

Laissez faire

Crizel Fernandez, Baguio City: The advantage is you can pursue business anytime, but the problem is, if ever you don’t prosper, you risk losing it all.  

Benjamin Nillo, Las Piñas City: The most distinctive advantage of capitalism is that it presents a bright business atmosphere, allowing big businesses to thrive even better.  

Renato Taylan, Ilocos Norte: Capitalism that operates to equally protect the rights of the lender and the borrower is a boon.  

Jose Jumawan, Muntinlupa City: Capitalism is where I can lose my shirt in a moment if I make the wrong decision or where I can make a fortune if I play my cards right.  

Erwin Espinosa, Pangasinan: A foremost advantage is its free market. Its “Live and let live” policy makes competition very stiff.  

Joel Caluag, Bulacan: Anybody can have a good break in a capitalist state, but it’s also open to manipulation.  

June Deoferio, Cavite: Advantage: Your capital returns earn interest. Disadvantage: the opposite.  

Control by a few

Manuel Abejero, Pangasinan: In capitalism, the production and distribution of goods and services are controlled by private individuals for profit. It works better in places where wealth is equitably distributed, because there can be competition. When capital and production are controlled by only 15 percent of the population, that’s oligopoly, which is what we have in RP. Print and broadcast media, which are the biggest tools in influencing the minds of the people, are controlled by less than one per cent of 90 million Filipinos.  

Rey Onate, Palayan City: Advantage: Provides overwhelming rewards to the creative and determined. Disadvantage: Often results in monopoly, materialism and, most of all, greed.  

Ed Alawi, Davao City: Capitalism’s advantage is fair competition in a free market; its disadvantage is the formation of business cartels and monopoly.  

Desiree Tabalba, Bukidnon: Capitalism could strengthen manpower and most individuals will be given work. On the other hand, there will be dominion and power by the individual who owns the wealth.  

Robert Young Jr., San Juan: Capitalism subscribes to a laissezfaire system of government. The government has limited control over business; it lets business compete. Individuals may choose the kind of work they want. Those who decide to be employed receive limited income while those who venture into business have the opportunity to become rich. There is a free market system in capitalism; supply and demand are not regulated or are regulated with only minor government restrictions. Capitalism, however, has its disadvantages. Rich businessmen tend to create monopolies of their business. They lobby solons to junk legislations disadvantageous to their business to the detriment of the public. There is a danger that capitalism may turn into an oligarchy where all power is vested in a few persons or in a dominant class or clique. It is a government controlled by a few.  

Tried and tested

Ryan Pahimulin, Rizal: Capitalism has been practiced since time immemorial. Its advantages must far outweigh its disadvantages.  

Rodolfo Capili, Caloocan City: Capitalism is the only acceptable triedandtested economic system in this contemporary global economy. Its main advantage is that competition, mass production and economy of commodities are built into it. On the other hand, one of the disadvantages would be that that supply and demand can be manipulated to raise prices. Cutthroat competition will lead to monopoly that will raise prices, too.  

Prone to abuse

Dino Monzon, Caloocan City: I don’t know about the pros, but I’m sure that it is susceptible to abuse and manipulation by personalities owning the finances.  Alvin Perez, Manila

Capitalism lets us invest, buy and sell. It allows us to be entrepreneurs freely. Unfortunately, overconfidence, lack of a safety net, greed, avarice and the unexpected usually follow.

William Gonzaga, Marikina City: Capitalism encourages people to use their money in undertakings where they earn profits. However, insatiable greed breeds exploitation and illicit methods, like payment of incorrect wages of workers or tax evasion. It’s reported that countless of workers in many big businesses are deprived of security of tenure, with hiring being coursed through agencies for a fivemonth period with less pay and benefits.  

Widens the gap between rich and poor

Germi Sison, Cabanatuan City: The advantages of capitalism are that individual talent, skills and industry are freely exploited to the maximum and earning wealth is unlimited. The disadvantages are that capitalists have the freedom to be individualistic and to keep their economic wealth to their selves. That widens the gap between the rich and the poor. Unequal distribution of wealth usually gives rise to insurrection and social division.  

Elpidio Que, Vigan: Capitalism per se is not bad. However, in a democratic capitalist state, the supremacy of greed in the beings of most of the moneyed and landed, especially in countries like ours, where capitalists corrupt government officials and leaders for the advancement of their bestial interests, makes it evil. This condition keeps on widening the gap between the haves and havenots, compelling the latter to commit crimes to fill up their stomachs. Even in democratic capitalist countries like the US, where they jail corrupt government officials and economic criminals, soft regulations on capitalism allowed the money markets to bubble, resulting in a financial crisis that is now reverberating all over the planets. Authoritarian capitalism, like that of Singapore, should be the answer to our woes. But who can replicate the character of Lee KuanYew among our political leaders?  

Works both ways

Erwin Espinosa, Pangasinan: Capitalism is evil to leftists and disciples of Karl Marx and Frederic Engels. For advocates of Adam Smith and industrialization, it is heaven.  

Gerii Calupitan, Muntinlupa City: Pro: Capitalism encourages those who have the guts to take a risk and plunge headon in moneymaking schemes, giving them the chance to improve their lot. Con: Capitalism encourages those who have the guts to take a risk and plunge headon in moneymaking schemes, giving them the chance to improve their lot. Case in point: China. In the 1960s, chairman Mao turned Red China into “robots”. Now, capitalism has converted them into “greedyminded robots”!  

Capitalism breeds greed

C.K. Yeo, Iloilo City: Deng Xiao Peng was a wise man. Mao Zedong and other Communist leaders failed to develop the Chinese economy until Deng adopted the capitalist system of government in Communist China. Individuals were not motivated to be productive, because as long as they worked, the government provided them with food and housing. Deng provided them with the incentive of earning more if they worked more. Farmers sold excess farm products in the free market; enterprising individuals put up private businesses and earned large sums of money. The rest is history. There are now more multimillionaires in China than anywhere in the world. They drive the best cars and drink the most expensive wines. One drawback, however, is that some became greedy, they put melamine in their products.  

Pedro Alagano Sr., Vigan City: Under a capitalist system, people can operate their own businesses for profit and devote their time to earning more wealth. Its disadvantages surface when insatiable greed comes into play.  

Capitalism is selfish

Rene Poder, Manila: Capitalism without true Christian charity is a cutthroat monster.  

Cris Rivera, Rizal: Capitalism favors the capitalist as it allows the government to interfere in business affairs. It makes government rules impotent, sows confusion, and breeds anarchy.  

Janet Lopez, Manila: The New York Stock Exchange embodies capitalism with a capital “C,” hoarding the gains but crying out for a socialist bailout when it’s bleeding billions.  

Johann Lucas, Quezon City: Advantage: Free enterprise, a competitive market helps to keep costs lower for the consumer. Disadvantage: A materialistic society where success is defined by how much you can accumulate before you die.  

Only the rich thrive

William Bacani, Bulacan: Advantage: Anybody should have the opportunity to succeed in business. Disadvantage: Only the rich make it because they have access to capital.  

Leonard Villa, Batac City: Advantage: It’s freewheeling and has made many people super rich. Disadvantage: The rich are often irresponsible and greedy. Capitalists benefit while consumers are exploited.  

The most productive system

Norberto Robles, Taguig: Capitalists tend to maximize profits at the expense of workers’ welfare and environment. Capitalism, though, is still the most productive system. It provides us with better wealth and jobs.  

Wendell Wisco, Bulacan: Laissezfaire actually encourages more investments because of uncontrolled free markets and unrestricted means of production or capital.  

Rizalina Reyes, Las Piñas City: A capitalist gains profit from the sale of capital investments, say, real estate. If the real estate business gradually yields a good ROI (return of investment), chances are, the capitalist would aggressively venture for a bigger picture, thereby creating more jobs. Ultimately, however, workers would only get a modest wage. The capitalist, as a shrewd investor, would naturally hanker for a bigger share of the profit, because the production and distribution means are privately owned by the said capitalist.  

Encourages profiteering

Lorenzo Fernandez Jr., Nueva Ecija: Capitalism is a necessary ingredient of a free society. Without it our economy will go to the dogs. I see no disadvantage in capitalism except profiteering, as done by some oil companies.  

Ruel Bautista, Laguna: Capitalism offers a fair chance for everyone to pursue what the market wants, but it’s too profitoriented for the sake and comfort of the marginalized sector.  

Root cause of corruption

C.B. Manalastas, Manila: Capitalism encourages free enterprise, but can also become the root cause of corruption.  

Weygan Totanes, California: Capitalism allows motivation for growth through healthy competition in a level playing field. On the other hand, unbridled freedom allows the “haves” to use their power to corrupt the system for their own personal advantage.  

I.Q. Calata, Parañaque City: Capitalism has the advantage of giving impetus to maximize the growth of the business at a fast pace via progressive competitiveness among private owners. Profit is its motivating fuel. Its disadvantage is that in a setting like our country’s current state, growing businesses are prone to be the target of dirty players in high places and could, before long, be involved in illegal practices. When the business is already big, somehow it has to yield to certain realities to stay on and survive. Is this story about big businesses maintaining three performance books true?  

Capitalism could work for us

Jim Veneracion, Naga City: Capitalism could thrive in a democracy like the Philippines, where we have free trade. An inequity is that oligarchs control our economy.  

Rose Leobrera, Manila: Here, business is better run by capitalists because we have a government that is always cash strapped when it comes to the benefit of the public, even if our own politicians’ pockets are overflowing with money. When Maynilad was solely under the government, walang tubig. Now there is water. Unfortunately, rates under a capitalist state are steep.  

We need personal change

Ronald Nieves, Ilocos Sur: It does not matter kung ano ang kagandahan at di kagandahan sa kapitalismo. Same din lang naman kung walang pagbabago sa sarili.  

THE WAY I SEE IT

Gabby Sicam, Metro Manila: With the worldwide economic crisis affecting the financial and banking system, the BSP should rethink the value and use of five and 10centavo coins in circulation.  

REACTIONS

Digoy Coro, Batangas: The October 28 opinions of Alex Magno and William Esposo are eye openers. Where have all our senators gone?  

The Oct. 28 texts on life and faith are awesomely inspiring! Thank you, fellow texters! We Filipinos are a great blessed nation!  Ed Angeles, Pasay City

Views expressed in this section do not necessarily reflect the editorial position of The STAR. The STAR does not knowingly publish false information and may not be held liable for the views of readers exercising their right to free expression. The publication also reserves the right to edit contributions to this section as it sees fit.

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