Prosperous Companies, Poor People; Does Capitalism Push Citizens into Poverty? By Augustine Shina Akande | Sahara Reporters

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There are 4 major economic systems around the world through which the factors of production are owned, controlled and deployed. These systems are Capitalism, Mixed, Socialism and Communism. If we conceive economic system as a spectrum of state involvement in economic activities, Capitalism would be on one end, Communism on the other while socialism and mixed economic system would be in-between. Capitalism refers to the ownership of factors of production by individuals and corporations.

By contrast, Communism is the highest form of state control of the factors of production whereby all factors are owned, controlled and deployed by the state. Socialism is a more relaxed form of communism whereby the means of production, distribution, and exchange is owned or regulated by the government for the members of the society. Lastly, mixed economy combines features of the various forms of economic system.

There have been many efforts at capitalism in the history of Nigeria. Our economy was largely characterized by many multinational companies at independence and the years before independence.

2007 to 2015 witnessed the consolidation of the many wins of the previous administration. With positive turns in the countries’ economic fortune and the increase in oil prices, the country experienced economic consolidation. Even though, the nation could have taken advantage of the economic boom of the period and raise many Nigerians out of poverty, corruption prevented the regime from making significant gains.

People cannot come out of poverty if the quality of public primary and secondary institution is at an all-time low, when university gates are closed for more days during any year than they are kept open due to ASUU strike, when government officials leverage on borrowed funds to prosecute elections, when uninspiring and incompetent individuals holds many of our public offices, when citizens give their votes to the highest bidders, when the youths use the internet to TikTok and waste away on...

 

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