short report 1800-1
S.SHARON
CapitalismandInequality111.docxRunning head: CAPITALISM AND INEQUALITY 1
CAPITALISM AND INEQUALITY 8
Capitalism and Inequality
Capitalism and Inequality Comment by 作者: There should be a title, not a topic. Pls write a title
Capitalism refers to the economic system of private ownership of property, goods, and services as well as factors of production by free individuals. The elements of capitalism have been responsible for economic inequality since the pre-industrial period. People have traditionally produced commodities that they needed for survival and traded them for those that they could not produce themselves in order to satisfy their insatiable needs. The eighteenth and nineteenth centuries ushered in the industrial age that heightened the levels of inequality. In the post-industrial age, inequality is a major concern that many nations attempt to resolve using political tools of governance. Capitalism has its roots spread so wide in the world, especially in the post-industrial age that the political tools of governance cannot control the rising inequality. But current government policies will not solve the problem. America needs to take other steps. Comment by 作者: Highlight in yellow means you are using defining. No defining Pls revise. And I gave an example at the third paragraph .
Capitalism，persistent part of today’s world and human progression, stems from the private ownership of factors of production. Individuals are constantly competing to come up with progressive innovations that set them ahead in society so as to accumulate wealth for them (Krugman, 2014). Most democratic governments in the world have accepted the harsh realities of capitalism for its ability to boost the economy despite the obvious setback of an increasing inequality between the rich and the poor. Despite the acceptance of capitalism, most of these democratic governments have set up tools of trying to redistribute wealth in the society and promote equality among all human beings. Elimination of the economic inequality cannot be done through government-imposed policies but by embracing the same elements of capitalism that led to the development of inequality. Comment by 作者: Highlight in grey means you use the passive verb. There is no passive voice
First, let us evaluate the contributing factors of inequality as a result of capitalism in the world. The changing forces and insecurity in the world is a large contributor of inequality in most nations’ economies. Individual, family and group variations are also sources of inequality that are attributed to capitalism in the economy. Globalization and shifting value on the factors of production are also additional reasons contributing to the inequality gap (Krugman, 2014). The pre-industrial period is believed to have been the age when equality was at an all-time high since individuals consumed all that they produced through their hard work. Production was also limited to only what a person required for survival and there was no need for accumulation of extra wealth as there was no where they could spend that wealth. The industrial age introduced self-cultivation that highlighted the differences among individuals, families and groups. Comment by 作者: Highlight in blue means you use the first/second person. No first person. Comment by 作者: Example: The changing forces and insecurity in the world contribute of inequality in most nations’ economies.
Specialization was the first aspect of the industrial age that led to development of inequality. Individuals were separated according to skill and knowledge and made to produce what they were best at producing then trading it for commodities they did not produce so as to satisfy their needs or meet particular demands. The introduction of specialization also led to the start of ownership of factors of production such as land, raw materials and capital. The value of these factors of production was different and so was the value of the commodities that resulted in the accumulation of wealth by some members of society (Piketty, 2014). The group of individuals whose skill and factor of production was deemed inferior in the community formed of the lower half of people with little wealth. Inequality was, thus, introduced to the society by capitalism in the industrial age through the differentiation of individuals and groups.
Since the industrial revolution, the economy has become an advanced source of dynamic innovations that tend to increase inequality between the upper and lower class. Dynamism refers to the changes in the economy that bring about new methods and techniques of production, which promotes and demotes specific groups in the society. During the industrial age, physical labor was a great source of income that promoted the male gender due to their natural strength over females because of their ability to work for longer periods (Muller, 2013). At present, cognitive abilities are preferred over physicality and this change promotes women with a higher emotional and functional intelligence. Introduction of new means of transport also brought about the change in distribution channels of certain commodities. These commodities disadvantaged a certain sector of the community that specialized in old techniques of distribution. This caused the people that were using these old techniques to start finding new ways to get income or rather adapt to the new ways.
The traditional organization was also renovated to incorporate a variety of programs such as labor unions and outsourcing of certain duties. At every stage of economic dynamism, a specific group of people was promoted with additional wealth while another was demoted to the lower class. In this way, the shuffle of individuals up and down the economic ladder was maintained by the dynamic nature of the economy. The insecurities in the economy refer to the risk of an individual being negative affected by the changes in the techniques of production. Capitalism ensures that there are distinct winners and losers in the competitive economic field and those at the top control the wealth of the society while the poor tried their best mostly by working for the wealthy in the society, so as to find something to put on the table for their loved ones. Distribution of wealth under the elements of capitalism is, therefore, based on who the techniques of production favor. In capitalist nations, the talented, highly skilled and wealthy families amass most riches of the society during the twenty first century.
Economists attribute the allocation of wealth in the twenty first century to the prevailing opportunities in the world (Piketty, 2014). Globalization is responsible for the ease in movement of knowledge and information from one nation to another. The wide access of information to every individual in the world through the internet despite their nationality means that most people have a fair opportunity of gaining wealth. However, instead of closing the inequality gap, globalization is leading to the unequal concentration of power. Power in this case refers to the knowledge of production that is owned by patent rights of the developed countries and distributed at a cost to the developing nations (Domhoff, 2006). Pharmaceutical innovations, for instance, are owned by few manufacturers that hold the medical formulas for monetary gains as the rest of the world is subjected to paying for the medicines.
The factors of production get their shifting value from the ability of certain nations to set a high price to their exports and commodities. Medicine and machines are some of the most valuable commodities that are traded at a high price as compared to agricultural products and materials that are unprocessed. Processing of raw materials to produce a finished commodity also raises the value of an item such that only certain classes of people at the top can afford them. Inequality in the society is sustained by the comparative difference in the value of goods according to the importance set on an item by the people. The value of an item is, hereby, higher when a great number of people need and desire it for survival. It is, therefore, accurate to state that the demand of a substance determines its importance to the society.
Inequality in a capitalist nation can be resolved through the redistribution of income among the citizens of a nation. The current capitalist economy promotes a certain group of people into the elite class based on how they utilize the available opportunities. It is, therefore, possible to increase the rewards of all individuals by an equal margin based on whatever they produce. Formerly, the wealthy upper class was formed due to inheritance of riches and factors of production from a rich parent (Domhoff, 2006). Presently, the diligence of an individual can be rewarded appropriately in a manner that closes the inequality gap. Economists argue that poor rewarding of those in the lower class and high rewards for those in the top class contributes to the wealth inequality. Take the example of an organization’s remuneration packages, the managers and directors receive double and triple the amount of salary paid to a department employee in the same company.
The economic growth in the United States and the world at large has been benefiting the top 1% by awarding them the major income earned from production. Even distribution of wealth in an organization to all employees according to their contribution on the production process seems adequate for closing the economic gap. Even distribution of income is, however, difficult due to the factor of merit that will still place some members of staff above others leading to the same inequality. The best solution would be to encourage economic innovation among everyone in an organization, such as the high rates of growth, are met by significant individual effort from every member of society (Krugman, 2014). Capitalism is a great source of income for the innovative in society since they constantly win in their economic ventures and earn revenue. In the case that every member of society is innovative in their own way, then rewards of capitalism will be distributed to majority of the community.
The innovative approach towards capitalism also requires government interventions to coordinate the distribution of income to those in the lower class of society. The upper class may be opposed to the equal distribution of income if it appears like the lower class is receiving undue rewards. The government should offer programs that not only prevent the rich in society from getting richer but policies that lift the poor and prevent them from becoming poorer. An alternative approach to the closing of the inequality gap is needed in this case. Cushioning the less fortunate from experiencing more poverty through social welfare and life insurance ensures that capitalism continues to function. Human beings are selfish as displayed by the egalitarian nature of the wealthy people that own property and factors of production. In order to eliminate the egalitarian nature in a capitalist economy, the wealthy should understand the need of promoting equality.
A rising inequality gap continues to increase the risk of sharp differences between the upper and lower classes of society and this might negatively affect a country’s economy. The poor people with no commodities to consume will end up preying on the rich people with more than they need, for them to also survive. Social vices such as crime and prostitution will increase in society as people search for a means of survival (Muller, 2013). When demand for commodities is higher than supply, people tend to do all they can to acquire the available supply of items. In this case, the low class will be willing to go to all lengths in order to acquire the wealth possessed by the upper class. In conclusion, redistribution of the wealth and factors of production requires the participation of every member of the society in order to achieve equality.
References
Domhoff, G. W. (2006). Who Rules America? Wealth, Income, and Power. Who Rules America: Wealth, Income, and Power?
Hacker, A. (2012). We’re More Unequal Than You Think. Website. Retrieved from http://www.nybooks.com/articles/2012/02/23/were-more-unequal-you-think/?insrc=rel
Krugman, P. (2014). Why we’re in a new gilded age. The New York Review of Books, 8.
Muller, J. Z. (2013). Capitalism and inequality: What the right and the left get wrong. Brigeport.edu. Retrieved from <http://www1bpt.bridgeport.edu/~jconlin/EssaysMullerCapitalismandInequality.pdf>
