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Capitalism And Ethics

1. Introduction 3
2. What is Capitalism 3
3. History of Capitalism 4
3.1. Strengths 5
3.2. Weaknesses 6
4. Greatest Strength 7
5. Greatest Weakness 8
6. Ethical in Australia? 9
6.1. Economic 9
6.2. Social 10
6.3. Industrial Relations 11
7. Conclusion 12
References 13

1. Introduction
Capitalism, as a form of government has a long and complicated history. Many have tried to define one single form of capitalism; however there are a number of different variations depending on things such as, geography, politics and culture. There are a number of different strengths and weaknesses associated with the ‘generic’ form of capitalism and this essay will discuss all of the major points of each. The economic, social and industrial relations system in Australia will also be discussed, in reference to whether or not the current capitalist arrangements are just and ethical.
2. What is Capitalism
Capitalism, according to the Collins English Dictionary (1999), ‘is an economic system based on the private ownership of industry’.
Dainanu and Vranceanu (2005, p 5) state that ‘capitalism’s main purpose is maximization of profit’.
Capitalism has the underpinning of a normative ethical theory such as ethical egoism. Shaw and Barry (2004, p 57) state that ‘Ethical egoism is the normative theory that the promotion of one’s own good is in accordance with morality. Shaw and Barry (2004, p 57) also state ‘egoism contends that an act is morally right if and only if it best promotes an agent’s (person, group or organisation) long term interests. In this case the long term interests are for those wishing to make a profit and continue to do so.
Daianu and Vranceanu (2005, p 5) state ‘Capitalism consists not only of the private appropriation of consumption and production resources, but also of the assumption that complete control over the conditions of any action is both desirable and possible’. This relates to the economic assumption that decision making is completed by...