Capitalism is an economic system based on free markets and limited government intervention. ... In short, capitalism can cause – inequality, market failure, damage to the environment, short-termism, excess materialism and boom and bust economic cycles.

What was the main problem with capitalism?

Capitalism has been criticized for establishing power in the hands of a minority capitalist class that exists through the exploitation of a working class majority; for prioritizing profit over social good, natural resources and the environment; and for being an engine of inequality and economic instabilities.

Why capitalism is fundamentally flawed?

This is the fundamental flaw of capitalism: the idea that because you can afford to do something, you therefore have a right to do it. ... The guiding economic principle of capitalism is the protection and promotion of a free market and/or free enterprise.