Capitalism is a good, but not perfect economic system. It is characterized by the lack of government intervention, and means of production owned by private firms. Free enterprise is good idea, but there are some negative aspects about it.

1. Inequality

Many corporations pay lower wages to workers in order to reduce the cost efficiency for their company. This is the reason for the use of sweatshops overseas. There are hundreds up to thousands of sweatshop workers who get paid very little compared to workers in the United States. Capitalism can fail to provide equality of opportunity, thus creating social division. In the division of wealth, the CEO makes the most of the money while the bottom, that does most of the work, earns a lot lower than the CEO. In the United States the 1% does not get taxed as they should, compared to the low and middle-class Americans.

2. Economy

Capitalism creates an economy that focuses too much on money-making opportunities that leads to becoming materialistic. Instead of providing for the common good, businesses create goods and services with only profit in mind. As competition increases so does the demand of technology. As time goes on, businesses will focus more on automation than manpower. This demand will cause a lot people to lose jobs. Increased competition can cause businesses to establish dominance over other businesses and get them out of business.

Capitalism has its cons when regarding economies. Capitalists may claim that it has good intentions, but the side effects of this economic system are detrimental to society.