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Capitalism and Poverty

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Does capitalism contribute to more poverty or help control it? Why?

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Solution Summary

The solution briefly describes that poverty exists in whatever economic system is adopted. Poverty can only be prevented if inequality and corruption are eliminated. The expert provides five references in the solution to aid in the understanding of capitalism and poverty.

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Poverty exists in both capitalist and socialist states.

Cobb and Diaz (n.d.) even wrote that neither capitalism nor socialism has resolved the fundamental paradox of modern societies: how to achieve economic progress along with social equality.

Sweden, a socialist country, ranks 10th as highly developed country. It has a GDP per capita $35,876.
Democratic Republic of Congo is a capitalist state with vast natural resources yet it is ranked number 1 as the poorest country in the world. Its GDP per capita is only $348 as of 2011.

We can trace the causes of Poverty as:
1. Inequality (Sha, 2013)
Less access to health, education and other services

2. ...

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