Natural Capitalism and Traditional Capitalism
Southern New Hampshire University
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NATURAL AND TRADITIONAL CAPITALISM
Natural capitalism is a system of four principles where environmental and business
interests overlap, and which consumers' needs can be satisfied by the companies, increase profits,
and solve environmental problems at the same time. It is all about producing continuously and
aligning the interest of the producer and the consumers. On the other hand, traditional capitalism
is whereby a group of people or a community engages in activities of producing goods and
services that are required by the other people. Trading activities are mostly carried out through
barter trade.
Natural capitalism has brought about the connectivity of people around the planet through
importation and exportation of goods and services and also through globalization. Traditional
capitalism, on the other hand, is localized and is based on the families and the tribes. It also
isolates people within an economy in that an activity carried out in one field might be different
from the other. For example, one area may be dealing with agriculture while the other
neighboring area deals with fishing; this means each traditional economy remains local, thus
lowering economic growth
Equality is present in natural capitalism in that everybody have the same opportunity to
fulfill their dreams. All it depends on is how they approach the idea about innovation. If someone
is hardworking and persistent, they will succeed financially and pass their wealth to the next
generation. On the other hand, traditional capitalism offers few chances since people are likely to
take after their parents. For example, if the father is a fisherman, the son is likely to learn from
his father hence becoming a fisherman too, and his children might also end up becoming
fishermen.
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NATURAL AND TRADITIONAL CAPITALISM
Natural capitalism can also lead to inequality in that wealth is passed from one generation
to another; hence, the rich remaining rich, and the poor continues struggling. For traditional
capitalism, everybody works hard for the same goal of survival and mainly to meet their basic
needs.
People can turn their skills and talents to profit earning projects in natural capitalism. If
an individual has high skills, he or she can get a high paying job, and others even turn their
talents into self-employment. In traditional capitalism, individuals have specific roles to play,
and skills are passed from one generation to another, and hence, there is no utilization of one's
talent if it's not related to the work given.
Self regulation occurs naturally in the natural capitalism because companies want to
increase or maintain the high profits hence offering goods and services to the consumers withou
supervision while as in the traditional capitalism, they are normally ruled by the leaders or elders
who are experienced and experts and who make economic decisions on how goods should be
distributed.
Natural capitalism has failed to reduce waste and increase production, which is the aim of
the private sector