I learned about Socialism, Capitalism and Mixed Economy in my school days. It was difficult to understand the depth in those days. But I managed to understand very basic concepts about these economic principles. USA and USSR became two countries with ideal capitalism and socialism respectively while India remains a mixed economy which adopts economic principles from Capitalism and Socialism. Capitalism upgraded itself by adopting free market economic principles and socialism gradually started fading by the end of 20th Century. In 21st century capitalism get the upper hand and majority of countries started accepting capitalism and free market economic principles.
As capitalism focused more in wealth creation and it helped some people to create more wealth and pushed some others to adverse poverty. It widened the gap between rich and poor as it never helped to keep the financial equality of citizens. But capitalism created lots of opportunities for their citizens and encouraged all to work hard, grab opportunities and improve their quality of life. Capitalism evolved or widened more by adopting globalization and free market principles to face challenges in 20th Century. In 21st century Capitalism started facing new challenges like credit growth,low growth rate,Collapse of Banks etc. It widened further and lead to the collapse of some economic systems in countries and negative growth rate.
All economic systems have a life-cycle which will have phases like growth,steady state and fading. Capitalism started fading in 21st century as an economic system. It dominates in the world as an economic system because no other system evolved to replace this fading system.
As capitalism focused more in wealth creation and it helped some people to create more wealth and pushed some others to adverse poverty. It widened the gap between rich and poor as it never helped to keep the financial equality of citizens. But capitalism created lots of opportunities for their citizens and encouraged all to work hard, grab opportunities and improve their quality of life. Capitalism evolved or widened more by adopting globalization and free market principles to face challenges in 20th Century. In 21st century Capitalism started facing new challenges like credit growth,low growth rate,Collapse of Banks etc. It widened further and lead to the collapse of some economic systems in countries and negative growth rate.
All economic systems have a life-cycle which will have phases like growth,steady state and fading. Capitalism started fading in 21st century as an economic system. It dominates in the world as an economic system because no other system evolved to replace this fading system.









