Capitalism

A love story.
GROUP 13
Keval Tanna(2015021)
Shrey Saxena(2015050)
Shreyas Raikar(2015051)
Siddhant Kapoor(2015052)

Capitalism
Coined by Adam Smith in his book Wealth of Nations
Laissez Faire
Invisible hand
Capitalist society
Capitalist Class
Working class

Private ownership of factors of production

Communism
Karl max Communist Manifesto
The ideal society
No private property
No social class
Factors of production owned by the government
Everyone has all their needs met

Comparison
of Roman Era
and Modern
Era

Ideal democratic model but the intolerance

and the irresponsible behaviour of the public
official led to the demise of Roman Empire

Condo
Vultures

Real estate agent bought condos at

cheap rate made use of the crises

Presidential
election

Deregulation
of financial
sector

Ronald Regan got elected as president

who considered by many as the
representative of wall street

Abolishment of rules facilitated unethical practic

Global
financial
meltdown

Tax collected from public were

used for the bailout

Overview of Capitalism

Stakeholder of capitalism
Society

Industry

Governme
nt

Moral decay
Wealth
Disparity
Consumerism
Extension of wall
street
State capitalism
Corruption
Trickle down effect
Free enterprise

Society
Moral decay-we need access to the economic ecology to provide for our need . this is what
keep us employed . there is a shift from culture of ownership to culture of access. The
unproductive idleness created by the lack of demand for the job leads to moral decay

Wealth Disparity- in capitalism the wealth is earned not on merit but on privilege and
the vicious cycle of poverty is fuelled by the privileged in the capitalist society. Capitalism
disallows equal rights to those earning low incomes

Consumerism people often buy things that they dont need and mostly cant afford
People are concerned with short term profit without considering the long term
implication ,Americans make up only 5% of the world's population, yet accounts for about
a third of global consumption
Black Friday-is the epitome of capitalism as people get the satisfaction of the deal

Government
extension of wall street-corporate executive occupie key position in the government
either directly or as advisor with this penetration they have the ability to manipulate the
course of government decision

State capitalism- the government own minority or majority stake in the company or
provide strategic support to private firm using subsidized credit and other protection

Corruption- corruption can be seen not in the executive branch but also in the judiciary
branch as the case of wrongful conviction due to vested interest of the judges

Industry
trickle down effect -Which means that providing tax cut and benefit to the
industry intern help rest of the population ,but this is used to gain tax cut in the
capital gain , high income individuals and corporate incomes

free enterprise -The freedom of private businesses to operate competitively for

profit with minimal governmental regulation Capitalism discourages local
production and encourages unregulated growth of gigantic cooperation that
exploit local labour for profits elsewhere

Capitalism
Can find its
roots in the
Roman empire
Belief of a
Free Market
Economy with
minimal
government
intervention

Consumer
driven market

Socialism

Emergen
ce

Philosoph
y

Agent of
change

Emergen
ce

As a reaction to
social and
economic
conditions
created by 19th
Century

Philosoph
y

profit being
distributed
among the
society or
workforce

Agent of
change

Workers in a
socialist state
are the nominal
agent of
change

Link with what we have studied earlier

Shareholders wealth- Each organization in a capitalist

economy looks for maximizing the shareholders wealth.

The Beast Within:- When the organization looks to increase

profits it tries to cut costs by indulging into immoral activities
where they dont care about people & how their activities are
affecting their lives. They just care about money, a sign of the
devil within

Deregulation of bank In the absence of rule this led to Chaos

The corporation capitalism turned world into a corporation

whos intention is profit maximisation ,as can be seen from the
case where we see a massive layoff to get short term profit and

Why is Capitalism needed?

Social Good-Everyone has the satisfaction that they as much
as any other person, no matter what their job is, are doing
their bit for society
Equal opportunity- Everyone has an equal opportunity to
work, it doesnt matter when or where or what you want to
start in life.
Freedom- Anyone can choose what job they want to do and
can live their lives the way they want to.

Thank You