One primary issue has dominated the recent debate in both developed and developing nations. This concern is the rising level of inequality currently being experienced in the modern capitalist society. Many people think the increasing inequality of income and wealth is brought about by politics. In reality, the inequality problem is an inevitable consequence of capitalism. Capitalism promotes the commoditization of goods, which creates an insecure market. At the same time, capitalism is concerned with productivity not equality. Class inequality, evident in the wide gap between the wealthy and the poor present in capitalist societies, is an inevitable and damaging consequences of capitalism.
Political capitalism is a system in which some …show more content…
Capitalism has increased the human potential and capabilities in numerous areas, evident in the advances made in technology. These advances are considered to be some of the positive effects of capitalism; on the other hand, capitalism has led individuals to adopt a new way of life as materialism is considered to be an ideal standard of life. According to Jerry Muller, the author of “Capitalism and Inequality: What the Right and the Left Get Wrong,” published April, 2013 in Foreign Affairs, capitalist societies need to resign to the fact that “insecurity will continue to be the inevitable result of market operations” (30). The increased commoditization has created insecurities which have worked to increase the level of …show more content…
Since the wealthy know they have the government on their side, they conduct their businesses in a ruthless manner. According to Ann Robertson and Bill Leumer, authors of “Does Capitalism Inevitably Produce Inequalities,” published July 2014 on Global Research, “they can use extra profits to offset lowering the price of their product, undersell their opponents, and push them out of the market” (www.globalresearch.ca/does-capitalism-inevitably-produce-inequalities/5389460). People have adopted the economies of scale model, which enables them to enhance their productivity at a reduced cost. This indicates that capitalism is about accruing profits and advantages. The extent to which political capitalism creates inequality is evident in developing countries. In “Inequality and Phases of Capitalism” published in 2014 in the Forum for Social Economics, the author quotes Lewis’s 1954 article which claims that, “‘the unlimited supply of labor present in these countries prevents wages from growing with the increase in labor productivity’” (217-18). This means that companies can take advantage of economies of scale by exploiting the readily available cheap labor. People choose to either work for low wages or remain jobless. As a result wages stagnate; thus, workers remain in a perpetual state of
Political capitalism is a system in which some …show more content…
Capitalism has increased the human potential and capabilities in numerous areas, evident in the advances made in technology. These advances are considered to be some of the positive effects of capitalism; on the other hand, capitalism has led individuals to adopt a new way of life as materialism is considered to be an ideal standard of life. According to Jerry Muller, the author of “Capitalism and Inequality: What the Right and the Left Get Wrong,” published April, 2013 in Foreign Affairs, capitalist societies need to resign to the fact that “insecurity will continue to be the inevitable result of market operations” (30). The increased commoditization has created insecurities which have worked to increase the level of …show more content…
Since the wealthy know they have the government on their side, they conduct their businesses in a ruthless manner. According to Ann Robertson and Bill Leumer, authors of “Does Capitalism Inevitably Produce Inequalities,” published July 2014 on Global Research, “they can use extra profits to offset lowering the price of their product, undersell their opponents, and push them out of the market” (www.globalresearch.ca/does-capitalism-inevitably-produce-inequalities/5389460). People have adopted the economies of scale model, which enables them to enhance their productivity at a reduced cost. This indicates that capitalism is about accruing profits and advantages. The extent to which political capitalism creates inequality is evident in developing countries. In “Inequality and Phases of Capitalism” published in 2014 in the Forum for Social Economics, the author quotes Lewis’s 1954 article which claims that, “‘the unlimited supply of labor present in these countries prevents wages from growing with the increase in labor productivity’” (217-18). This means that companies can take advantage of economies of scale by exploiting the readily available cheap labor. People choose to either work for low wages or remain jobless. As a result wages stagnate; thus, workers remain in a perpetual state of