The problems of capitalism

The problems of capitalism arise from the same source as those of socialism: the excessive concentration of control of capital. In the case of socialism, this controlled is exercised by the government and necessarily degenerates into unhealthy reliance on ban's, mandates, and the use of force. In the case of capitalism, capital is controlled by private individuals and corporations, and when capital is excessively concentrated, those entities can engage in conduct that negates the benefits of capitalism. Specifically, they can engage in anticompetitive behavior, counteracting one of the optimizing mechanisms by which capitalism produces progress, as well as manipulating markets and thus abnormally skewing the value of commodities.

As stated previously, capitalism is on the whole much better for human progress and is socialism, which inevitably becomes tyrannical and oppressive. It is also excessively prone to corruption. This latter characteristic is also a weakness of capitalism, as it is the control of capital itself that provides the corrupting influence. Capitalism also is subject to an instability in that the concentration of control of capital facilitates even greater concentration. The best defense against this is increased access to capital in smaller, more focused entities that can exploit weaknesses that inevitably arise from the concentration of capital. This is consistent with the concept of subsidiarity as described by Distributists. T go to sleephe difficulty encountered with subsidiary arises from matters of implementation and will be discussed subsequently.