What Are The Disadvantages In A Capitalist Economy?

In a capitalist economy, there is more of a gap between the rich and the poor.

Since the government doesn't really get involved in the economy (except to prevent monopolies from occuring), some companies can dominate the industry. If you take a look at Wal-mart, you see that Wal-mart dominates a lot of the USA industry. They have also driven out a lot of small business and perpetually dictate what goes on.

There may also be abuse (worker abuse), once again Wal-Mart. Low wages for workers and long work hours. If you also notice, the only unionized wal-mart is in Germany. There are no other wal-mart that contain unions so the managers and things sometimes mistreat workers.
Hope this helps.

T Ef

Many economists criticized Market capitalism for the following reasons:
1. As previously mentioned, the production of the capitalism market is directed according to consumers' preferences. Those are the preferences of a certain class that has money to spend. By reflecting only the preferences of that class, the production is neglecting the preferences of the other class that doesn't’t have money to spend. This would lead to a dangerous phenomenon called "social class alienation".
2. Monopoly may arise because restricted competition; as a result prices would increase.
3. Because the government in market capitalism doesn't’t set rules and regulations for business owners, this would make the economy driven by the individuals profit motives, which will increase prices of goods and services.