Editing Capitalism and its Critics (section)

== <span style="color: #FFFFFF;">Understanding</span> ==
Capitalism and its critics are understood through '''Incentives''' and '''Social Costs'''.

'''1. The Engine of Growth (Incentives)''':
Capitalism works because it uses "Self-Interest" as fuel.
* If you invent a better phone, you get rich.
* This competition forces companies to be "Efficient," "Innovative," and "Customer-focused."
* Critics admit that capitalism is a "Wealth Machine," but they worry about "Who gets the keys" to the machine.

'''2. The Market Failure (Externalities)''':
The "Invisible Hand" is sometimes "Blind."
* If a factory makes a profit by dumping chemicals into a river, the factory is "Successful" in capitalist terms, but society is "Poorer."
* Critics argue that the market cannot solve problems like "Climate Change" or "Public Health" because there is no immediate profit in solving them.

'''3. The "Creative Destruction"''':
Joseph Schumpeter argued that capitalism is a "Permanent Gale."
* Old industries (like Horse Carriages) are "Destroyed" to make way for new ones (like Cars).
* This creates progress, but it also creates "Suffering" for the workers in the old industries who lose their jobs.

'''The 'Shareholder Primacy'''': The idea (popular since the 1970s) that a company's **only** duty is to make as much money as possible for its owners. Modern critics argue for "Stakeholder Capitalism," where companies must also care for their workers, their customers, and the planet.
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