Question

5. Transitioning countries must take into account the costs of capitalism, because they will experience its __________________—such as the Great Depression's __________________ and __________________ __________________—before they experience its benefits.

Answer 1

Transitioning countries must take into account the cost of capitalism, because they will experience its instabilities such as the great depression’s unemployment, and social unrest. Before they experience its benefits.

Step-by-step explanation:

When a country carries on a transition to capitalism, they require a very strong and wide contingency plan in order to take care of the problems that they will face. In the first place, the culture is going to change because the social values and the country’s objectives have changed from moderation to freedom. This is reflected in the companies that were the manufacturers of the products, they were government monitored and after the transition, the free open market will lead them to find a fight in the market in which the best one will win, not the one related to the government. In addition, free market it’s beneficial to the population because they will be able to purchase better products. Another important factor countries have to face is the distribution of wealth because in pure socialism everyone received the same, while in capitalism the breach of wealth acquisition will be based on each ones performance and success. Finally GDP per capita will outstand from everything because their relations will be poor and they will lack the ability to sell outside their country so the first stages are very difficult.

Answer 2

Transitioning countries must take into account the costs of capitalism because they will experience its instabilities such as the Great Depression's through privatization and loss of political power before they experience its benefits.

Transitioning countries such as those in Africa have not had adequate time and resources to build social safety nets. This should solve unemployment cases and availing of social security to citizens which has been a challenge for most people in these countries. Capitalism is unstable in these countries transitioning as the poor, unemployed, and less productive members of society are ignored.