Thursday, April 16, 2009

One Critique of Capitalism

I am not a communist, Ron Paul "Revolutionary," socialist, or any other ideology. So when I say that capitalism is a black mark on the nations flag and the source of most evils in the world, I am speaking from a strictly observational stance.

According to the American Heritage Dictionary capitalism is "An economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market." There are two things that you should be taken from this:

1) Capitalism is an economic system. It was never meant to intrude upon our social or political selves. However, by its very nature it must do so. Example: Owning any means of productions (factory, farm, etc.) puts the owner in a position of great power -- and with that comes great responsibility. The employer must make sure that workers are able to take care of his farm. This could mean providing a tractor. Now the owner of the Farm needs to deal with the Tractor Company. What are fair methods of dealing? Should the Tractor Company treat each client equally or give discounts to bigger farms?

In capitalism the answer is simple: charge the highest amount possible while maintaining the lowest cost of production (to maximize profit). The simplest method is to get materials from the cheapest source and underpay employees. Inevitably we end up with a top-down system in which the bourgeoisie (owners of the means of production) enjoy a significantly higher standard of living than the workers.

So what happens when the workers can't pay rent because they do not receive a living wage? Should the Farm owner pay him more? Is he responsible at all for his employees' well-being? Capitalism says no. Pay raises would cut down on profits, duh!

So if the objective in a capitalist economy is to maximize profits, what are the costs (other than overhead)?

One, worker happiness. The owner of the Farm must pay the lowest amount possible if he wants to compete with other business. This means that as a Farm worker, you will never be able to reach the same level of success as the Farm owner. What then, is the motivation for working if you can never advance yourself in society?
Modern: why work if I can be on welfare? or Why take pride and work hard if there is no recognition?

Two, a class system. There are automatically at least two classes: Owner and Worker. If the scenario is similar to the one I've described, then the Worker will remain impoverished in his class until he dies -- doesn't sound very fun to me. Sub-classes are also likely. Distinguishing factors like Owner class (2 tractors v. 3) and Worker (with house v. worker with apartment) for example.
Modern: extreme differences between the lower and upper class cause many Americans to feel disenfranchised and less important than a person of a different class.

Three, biased political control. Why would people on federal tax payroll want/need to take care of citizens that do not contribute as much to their salary? If the government forces the Farm to pay workers a living wage they will both be losing money.
Modern: the NRA donates millions of dollars to campaign funds and when it comes time for the ban on assault weapons to be renewed, it "miraculously" is allowed to expire.

Four, unjust social control. Obviously those that control the wealth have a direct influence on our lives. If the Farm owner decides to provide health care at his expense, workers may live longer. On the other hand, if he denies them this privilege, we may experience a higher level of disease and death.
Modern: actually the health care thing is still applicable.

2) The second thing we should learn from the American Heritage Dictionary's definition of capitalism is "...development is proportionate to the accumulation and reinvestment of profits gained in a free market." This speaks volumes. It basically states that a capitalist system must exist in a market free of regulations (minimum wage, product safety standards, etc.) and constraints (anti-trust/monopoly laws, etc.) to achieve its goals. Thus it becomes the government's job as the ruling body to protect its people from capitalism's wanton disregard of the public good.

However, said government is not born from the desire to better mankind. Instead, the government must find a balance between protecting capitalist industry standards (which mandate as little humanity as possible,) while guaranteeing basic rights to men who do not possess the influence to buy them. This government -- our government, does not peacefully coexist with the capitalist economy. Rather, it is locked in a constant moral struggle between what is good and just, and what will maximize profit. In other words: we, the people, are never the complete winner in a battle of rights versus money. We are torn to either side of the spectrum, weighted as a pro or a con against the interests of big business.

Point in case, capitalism as a solely economic system is an impossibility. As pointed out, this particular economic theory encroaches on almost every aspect of our lives, and in many cases has a negative impact. It forces us to consistently place money or morality over self-interests (such as food and shelter for loved ones) in a contest which requires necessary and unrelenting sacrifice from either side.

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