Is capitalism sustainable? - Essay Example

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Is capitalism sustainable?

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. ...
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Capitalism refers to the accumulated wealth in the form of investments in financial assets. There are four types of capital in the economy; i.e. human or social capital, financial capital, manufactured capital and natural capital. For the better performance of capitalism, these four factors must remain adequately in the environment…
Author : gorczanyfabian

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