Question

Which of the following is not a socialist critique of capitalism?...

Which of the following is not a socialist critique of capitalism?

The need for high-capital businesses to grow, regardless of real demand, causes them to resort to creating artificial demand through mechanisms like high-pressure advertising.

Private ownership of essential industries reduces macro-planning and leads to uncoordinated (wasteful) economic activities.

It does not create large overall productivity.

Answer & Explanation
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Capitalism is a case where an economic system focuses on a free market to determine the most efficient allocation of resources and then it sets prices based on the supply and demand of the goods and services. One can easily identify capitalism by looking at things like the private motives of the individual firms, competition, government intervention which is minimal as well as private ownership. 

Step-by-step explanation

Socialism refers to an economic system in which the means of production are socially owned and used to meet human needs and not to make a profit for those involved. In the question above, the  socialist criticisms of capitalism are ;

  • The need for high-capital businesses to grow, regardless of real demand, causes them to resort to creating artificial demand through mechanisms like high-pressure advertising.
  • Private ownership of essential industries reduces macro-planning and leads to uncoordinated (wasteful) economic activities.

It is therefore not a socialism critique that capitalism does not create large overall productivity because consumers have different tastes and preferences on the goods and services that they want to consume and so it means that there will be mass or large overall production of these goods and services so as to cater for their needs.