Fundamental Part of Capitalism?

Written By: Jason Lee Layout By: Ellen Ryu

Austria when it was governed by the Social Democratic Workers’ Party of Austria between the years 1918 and 1934. Under neath a democratic socialist economy, the Austrian govern ment successfully provided housing to around 200,000 people in Red Vienna, combating a serious housing crisis. This clearly shows the success of a democratic socialist economy in solving housing shortages, the very shortages that capitalist urban giants like Hong Kong and South Korea are facing in the status quo. This all, however, is not to say that a capitalist economy is without its merits. Capitalism prides itself on giving individuals and businesses the liberty to pursue their own self-interest and compete freely in the marketplace. In a truly meritocratic capitalist system, success is determined by an individual’s abilities, hard work, and ingenuity. Under this system, those who provide valuable goods and services to others are rewarded with profits, while those who are unable to do so are comparatively less successful. This system creates an incentive for individuals to work hard and strive for success, which can lead to the efficient allocation of resources and the creation of deserved wealth.

Moreover, capitalism encourages innovation and creativity, as individuals and businesses are free to experiment and find new ways of doing things. This can result in improved products and services, increased efficiency, and higher living standards for everyone. While there may be inequalities in a capitalist system, they are not inherent to the system itself. Rather, they can be the result of various societal and systemic factors, such as unequal access to education and resources, discrimination, or corruption. When such resources and capital are distributed in a fair manner, capitalism can thus be largely meritocratic, where success is determined by an individual’s abilities, hard work, and ingenuity, providing opportunities for upward mobility and economic growth.