The PoliEcon Insight

  Capitalism and Its Impact on Social Inequality Introduction Capitalism, as an economic system characterized by private ownership of the means of production and the free market's regulation of trade and industry, has been the predominant mode of economic organization in the modern world. While capitalism has been credited with driving economic growth, technological innovation, and increased living standards, it has also been scrutinized for its role in exacerbating social inequality. This examination will delve into the multifaceted impact of capitalism on social inequality, exploring its causes, manifestations, and potential solutions. The Mechanisms of Inequality in Capitalism 1. Wealth Concentration: Capitalism inherently tends toward the concentration of wealth among a small percentage of the population. The capitalist model rewards those who already possess capital, allowing them to invest and accumulate more wealth. This leads to a feedback loop where the rich get richer, of...