Introduction The concept of capitalism has been in existence since time immemorial. While on one hand there are those who are ardent supporters of the concept, there are others who feel that this concept has not been of any benefit to the world. Some people argue that capitalism is only a tool for the rich and well established countries which they use to propagate their selfish motives at the expense of poor or third world countries. Johan Noberg argues that, “the world’s inequality is due to capitalism. Not to capitalism having made certain groups poor, but to its making its practitioners wealthy.” This paper takes a critical look at this quote and attempts to demystify it in order to establish the correct position as far as capitalism is concerned. Background Information It has been said that close to the total number of resources that are available world over are consumed by only a small percentage of its population. To be precise, more than 80 percent of the world’s resources are under the control and strict management of about 20 percent of the entire population of the world. The other 80 percent of the population have to share the 20% and since it is hardly enough, they have to fight for it and it is survival for the fittest. That is without a doubt a great form of inequality. The big question however is, what causes this great discrepancy and discordance? Are the developing countries or the peripheral countries poor because the developed countries are rich? Would that be a valid argument? Does it mean that if the 1 st world countries were less rich then the poor countries would be doing better? It is obviously a misconception when we assume that those countries that are rich are the cause of poverty that the third world countries experience. Production of Resources Noberg notes that most of the countries that are doing well economically, for example the United States of America were colonies and that they had a lot of catching up to do after they gained independence. Surprisingly, some of the countries that are least developed, for instance, Liberia and Afghanistan were not colonized and have had control of their resources from the word go (Noberg 154-155). The main reason however why only about 20 percent of the world’s population has control of close to 80 percent of the world’s resources is because the same countries are in charge of production of these massive resources. Therefore, the problem that needs to be addressed is the fact that many people in the world are generally poor, and not because there are other people who are rich. Argument against capitalism Those who advance arguments against capitalism are of the opinion that looking at the per capita GDP of some of the rich countries and in comparison to the per capita of poor countries, the former is said to be 30 times higher (Peet 94). It is because of this observation that critics argue that this inequality is caused by capitalism. While they may be right in making such a conclusion, they are definitely mistaken in regard to the reasons they give. Most of the countries that have prospered economically have taken the path of capitalism while those that have resulted in communism while impeding production, trade and ownership have alw