KBC 14: Private ownership of the means of production is a feature of which of the following economy?
Socialist economy
Capitalist economy
Mixed economy
Traditional economy
Answer: Capitalist economy
“Seize the means of production”, philosopher Karl Marx had said while setting the cornerstones of a socialist economy. However, in a capitalist economy, the means of production are privately owned.
Thus, the end products are reified and workers are objectified in this system, as Marx explained. The surplus product becomes a source of unearned income for users.
When means of production are owned privately it strips many of access if they do not have the finances to pay for the same. On the other hand, seizing the means of production allows for small manufacturers also to pop up, while the former model benefits bigger manufacturers with accumulated resources and wealth.
A capitalist economy, by allowing private ownership of means of production allows owners to set a price of the product, which customers have to pay if they wish to have access to that particular item.
In command economy, all factors of production are owned by the State so that every individual can reap the benefits equally. Private ownership always gives rise to situations where there can be exploitation or at the very least a hoarding of resources with the intention to drive up prices.
Thus, unless means of production are privately owned the market or factors of demand and supply do not play any role. While capitalist systems seek to increase individual wealth, socialist systems seek betterment of society at large with equitable wealth distribution.
KBC 14: Where is the highest motorable road in the world located?
