describes an economic system, where the means of production, trade,and industry are entirely or largely owned privately and solelyoperated for the purpose of realizing profits. As such this economicsystem has a small group of individuals that have resources, who canhave the influence in the manner that different economic activitiesare carried out (Mueller62). Besides, this group may comprise a few individuals that controlthe power that others enjoy. Therefore, capitalism can be consideredas an economic system, where a meager global population is likely tobenefit at the expense of the vast population. The aim of this paperis discuss the argument that capitalism works only for a smallfraction of the global population.
Incapitalism a few individuals own industries and means of production.Since they own these resources, they have the full rights ofoperating these resources in a manner that they desire. Thegovernment do not intervene unless in the matters of providingsecurity to the individuals. Since the ownership of these resourcesis solely for the purpose of making profits, it is evident that themoney or profits that emerge from the ownership and operation of theresources is available to a few individuals only. These individualsthat own the means of production and industries will always tend touse the resources for self gain, which imply that the majority of thepopulation is not likely to benefit from the resources. As such, moremoney will be possessed by a small portion of individuals that havethese resources. Since this is an aspect of capitalism, capitalismcan be argued to work for a small portion of the entire population.
Asit has been indicated earlier that in capitalism only a fewindividuals own the means of production, this factor brings anotherelement in capitalism. This is the aspect of competition in obtainingwork. Competition in obtaining work can be determined by the mannerin which the means of production or the economic resources aredistributed within the economic system. In case the economicresources are widely distributed to a vast population, thencompetition is not likely to be felt to a large extent. However, whenthe economic resources are distributed to a few individuals, there isa likelihood that competition must prevail since a large populationdesire to have a share. Since the means of production in capitalismare owned by a few individuals, there is competition in obtainingwork (Mueller66). The owners of means of production force the population tocompete in obtaining work at low wages, but since they have controlover the large population because they own the economic resources,workers have no alternative other than to compete for theopportunities they have. Only a few benefits from the competition forwork since the owners of the economic resources always look forwardto exploit them by paying low wages.
Thegovernment has a role in fixing the price charged on a commodity,when there is an overcharge. However, this is not the case incapitalism. The capitalism system is usually governed by thecompetition in the market. This competition may lead to only a fewindividuals being in a position to afford the commodities being sold(Needham48). Since owners of capital have money as a result of using theireconomic resources, they can influence the price of a commodity bypurchasing it at an exceedingly high price because they cannot feelthe burden of purchasing commodities at a high price this is due tothe reasoning that they have the purchasing power. Besides, sincethey own the economic resources and they have full control over whatis produced by the economic resources, they can dictate the price atwhich to sell products that become produced through using their meansof production. In such an instance, they may set prices ofcommodities at an exceedingly high price such that only a fewindividuals can afford. Therefore, in capitalism, owners of economicresources have the control over prices which affects theaffordability of commodities. In most cases, only a few individualscan afford to pay for the commodities hence, it is an economicsystem that only works for the few.
Incapitalism, only a small number of individuals are in a position ofliving in luxury, while the large portion lives in poverty. It hasbeen indicated that only a few individuals own the means ofproduction and they use these economic resources to profit themselvesat the expense of others. The owners of economic resources will tendto use the resources in every way possible to realize profits even ifit means paying low wages in an attempt to maximize their revenues.This is an indication that the owners of economic resources will havea lot of resources that attract a luxurious life. However, when itcomes to the large population, there is exploitation by the owners ofeconomic resources that hinder them from earning more money that canhelp them in living luxurious lives (Amin64). Therefore, in capitalism, only a small portion of the populationhas the capacity of living in luxury. This makes capitalism aneconomic system that works for a small portion of the globalpopulation.
Incapitalism, owners of the resources tend to have control over power.As these individuals tend to safeguard their resources, they rise inpower or use the power in gaining more resources at the expense ofthe large poor population. In the entire world, poor individuals havebeen coerced to move from their lands by those supporting capitalismbecause they want to gain more resources. For example, owners ofresources have pushed people from their land in order to have theircompanies exploit the resources in these lands. A good example is aland that has minerals those in support of capitalism and have powerusually move people from the mining land in order to exploit themines. People pushed from these lands never benefit after beingrobbed of the resources they have, the poor have no alternative otherthan labor in order to profit the owners of means of production andhave something that they can use for survival. Companies owned byindividuals such as mining companies have been in a position to usethe means they have in exploiting people living in places full ofresources. Although people living in such places could benefit fromthe resources that they possess, they fail to do so because they lackthe economic means to utilize these resources. Therefore, thesepeople end up giving individuals that own means of production theopportunity to exploit them in order to survive. Most individualshave not benefited from these instances, but only a few individuals(those that own the means of production) benefit. Hence, capitalismleads to only a few individuals benefiting through the use of thepower that they have or influence.
Inaddition, in capitalism, owners of means of production use theirresources to make those in government protect them. For example, theymay influence law makers to make laws that protect their interestsand their private property, but not laws that protect the ordinarypeople (Fisher38). In some instances, law enforcers may be given money in order toensure the laws protecting the private ownership of resources becomeimplemented. This only protects few rather than protecting the vastglobal population.
has been indicated to work for a small portion of the globalpopulation because only a small number of individuals are in aposition of living in luxury, while the large portion lives inpoverty. Since owners of the means of production have the controlover their resources, they usually determine who to give job to andwho not to. This has led to only a few individuals benefiting fromthe system, which implies that only a few can live luxurious lives.Since the owners of economic resources determine, who to offer jobto, there is inequality in the distribution of wealth in a capitalismsystem. In addition, in capitalism, individuals that own the means ofproduction and industries will always tend to use the resources forself gain, which imply that the majority of the population is notlikely to benefit from the resources. As such, more money will bepossessed by a small portion of individuals.
Amin,Samir. Obsolescent: Contemporary Politics and Global Disorder.London: Zed Books, 2003. Print.
Fisher,Mark. CapitalistRealism: Is There No Alternative?Winchester,UK: Zero Books, 2009. Print.
Mueller,Dennis C. TheOxford Handbook of .Oxford: Oxford University Press, 2012. Print.
Needham,David, and Robert Dransfield. BusinessStudies.Cheltenham: Stanley Thornes, 1994. Print.