Demerits of Capitalism:

 

                    Demerits of Capitalism:

 1) Accumulation of Wealth:

                                                                   The biggest flaw of this system is accumulation of wealth in few hands, that causes unequal distribution of wealth Society is grouped into two sectors i e rich and poor. Wealthy people consume their income on luxurious items while poor long for basic need.

2) Wastage of Money:

                                                         Firms and predatory units compete with cache other. Lot of money is spent on publicity and advertisements, which is considered as wastage at national level.

3) Over Production and Unemployment:

                                                                                                 Private investors decide about production according to their own estimates. Sometimes un-employment increases due to over production and economy suffer from slump and stagnation.

 4) Profit Curiosity:

                                             Resources are used for personal interest that causes increase in curiosity of profit. The industries or plans are neglected which have significance at international level but are less profit oriented.

 5) Cause of War:

                                              In this system industries are established in different countries, and multinational companies come into being, due to which various countries become rivals resulting tension and war.