Is capitalism responsible for increase in poverty?

Question

Is capitalism responsible for increase in poverty?

Answer 1

Yes, Brazil and India are perfect examples.

Answer 2

in simple words Capitalism is - Survival of the Best! Yes, It does create poverty to people who are not smart enough to compete against the world.....but better the smart ones perform, more money will they have to spend, which in turn means more oppurtunities for the not so smart ones. but Communism causes overall poverty cause the better ones are not allowed to excel as their fortunes are shared with the not so smart ones thus creating a major disincentive do better than others. this results in an economic slowdown and then followed by disaster.

Answer 3

The fraction of people in poverty is not increasing   measured over decades and downturns in the economy  causes only short term fluctuations in the downward trend. See

http://www.gapminder.org/downloads/prese...

The main justification for capitalism, is not it's fairness, but that it decreases  poverty  because it is  an efficient engine for economic growth.

Answer 4

Not sure what increase in poverty you are talking about, but in general, capitalism is responsible for lifting the living standards of the western world (where the standards of living are highest), so the short answer to your question is "NO, capitalism is responsible for reducing poverty".

However, I will add that capitalism does tend to create a wider distribution of income. So while it does reduce poverty, it also makes the rich far richer. This has been corrected for in many nations, but the more capitalism is wide open, the wider distribution of incomes you tend to have.

Answer 5

no, it's the absence of capital that is responsible

Answer 6

capitalism is not responsible for rise in poverty.......it just promotes growth and developement ........... where there is growth and developement ... there is money ......... when people have more money ........ they spend more!!!!........ where there is liquidity ....... people can earn easily.......who is ready to work ..... can make money...... in communism ........ they wont allow any one to grow and develope !!!!!!!!!!!!

Answer 7

As for poverty, under capitalism, no poor man is prohibited from creating a fortune -- observe that in late 19th century and early twentieth century America how hundreds of really "poor" immigrants, who could not even speak a word of English, came to America and within a generation were America's newest elite -- and they did it without the government on their backs, or on the backs of others. Even today, in semi-free America, many such immigrants come here starting with nothing and create fortunes -- though this is a rarer occurrence due to the vast weight of the volumes of incoherent and irrational regulations that punish those who have an urgent need to accumulate capital (the poor).