Thus reduction in these capitals will lead to destruction of the human capital. Contributions of capitalism to the society depend on their profit and growth. Thus the existence of capitalism also leads to reduction in human and social capital. With the increasing cost of production and diminishing social values the sustainability of capitalism is reduced. (Heslam 2002).
The growth model used by the capitalism seems to be uncertain due to its dependence on depleting natural resources. Rapid decline in natural capital will be a challenge to the economic capital. Climate crisis, income disparity, and scarcity of financial and social; resources in the global economy are affecting the sustainability of capitalism. Capitalism has helped the development of financial system in countries through increased income from investment and employment opportunity to the society. Thus the existence of capitalism is necessary for improvement in society.
Sustainability of any system depends on the energy procured by it. Without energy, sustainability becomes impossible. Capitalism acquires its energy from the environment through extraction. But it does not provide consideration for restoring the energy extracted by it. This makes energy reduction in the environment. It is termed as physical entropy. Capitalism is based on the concept of profit. Without economic benefit, no restoration of energy takes place. Future generations' benefits are not the mission of capitalism. It insists on making profit with the resources in the environment. It undertakes only financially profitable activities. Reduction of wastes and pollution carried out by firms depends on the profitability from that process. Individual's self interest is only considered in capitalism. Energy renewal is carried out to support current consumption and restoring of energy for future generations is not considered. Thus, capitalism inescapably dislocates social energy through weakening the personal relationships in society.
In order to ensure maximum economic efficiency, impartial and impersonal relationship between people is necessary. For efficient functioning of market economies, competency instead of cooperation is required. In a more productive business environment social relationship gets less time and energy. In a price based marketing there is no place for trust and personal relationship. It reduces the personal relationship in the society. It is termed as disorganization of social energy through devaluation of personal relationships. In capitalism resources from the society are used for making profit. However, there is no consideration for restoring the social capital which is essential for maintaining effective personal relationships in the society. Investment in the society for the benefit of future generation does not provide any economic incentives for the business capital. Relationship in the capitalistic society depends on its financial benefit for them. Investment in social capital is treated as waste of resources in capitalism
In an economy people exchange their resources with other people for mutual benefit. Transformation of physical energy in raw materials with the help of social energy in human resources is carried on in capitalism. It is exchange on the basis of profit. Economic capital takes out energy from natural and social capital. Social and