Econ 205112618 Capitalism Is Morally Objectionable

Econ205112618capitalismcapitalism Is A Morally Objectionable System

Capitalism is a morally objectionable system that exploits workers and ignores the neediest global citizens. This is because it focuses on profits to the employers more than the well-being of the workers. Therefore, the wage rates of employees are very low in a capitalist setting. By definition, capitalism refers to an economic system whereby trade and industries in a certain country are controlled by specific individuals or private owners whose main aim is to make profits. The means of production are privately owned by either few individuals or the government. The property owners are responsible for making decisions, but prices are determined by the level of competition in a specific country (Myers, 2014). The benefits of capitalism are that it makes people work harder in order to earn a living and also enhances economic growth. Capitalism brings about unequal distribution of wealth since few individuals gain a lot of wealth while the majority of citizens remain very poor. People living in capitalist nations often become too materialistic. The system also increases the level of unemployment and brings about social alienation (Slaughter et al, 2017). Those who have managed to acquire wealth often segregate those who are poor.

The working conditions of employees in a capitalist nation are often very poor since focus is only on profits. The pursuit of profit leads to cost-cutting measures that often compromise worker safety and rights, resulting in poor wages, long working hours, and inadequate health benefits. Capitalist firms tend to prioritize profits over employee well-being, leading to social alienation where workers feel disconnected from the products they produce and the companies they serve (Marx, 1867). Furthermore, capitalism's competitive nature fosters an environment where firms may suppress wages or discourage unionization to maximize profits, which exacerbates worker exploitation. For example, subcontracting and gig economy jobs often lack job security, health coverage, and fair wages, reflecting the system's focus on profit maximization at the expense of workers’ welfare (Piketty, 2014).

The development of a nation through capitalism can be viewed as a double-edged sword. On one hand, capitalism incentivizes innovation and hard work, leading to economic growth, technological advancements, and increased standards of living. As individuals seek to improve their economic status, they contribute to the nation's development by creating jobs, increasing productivity, and fostering entrepreneurship (Smith, 1776). However, this growth often comes with increased inequality, social stratification, and environmental degradation, which may undermine long-term societal stability (Harvey, 2010). The competition inherent in capitalism can result in a race for resources that may lead to conflicts and wars, especially when nations or corporations seek dominance over markets (Tienhaara, 2014).

Capitalism can be compared to slavery in terms of exploitation because it often disregards the well-being of workers, treating labor as a commodity to be bought and sold for profit. Trade unions, which advocate for workers’ rights, are typically weaker in capitalist settings because of anti-union policies and the prioritization of profit over fair wages and working conditions (Hirsch, 2015). While capitalism has historically driven economic expansion, it tends to concentrate wealth in the hands of a few, perpetuating systemic inequality. Critics argue that to make capitalism more ethically acceptable, it must incorporate mechanisms for protecting workers’ rights, ensuring fair wages, and addressing social needs beyond profit margins (Sen, 1999).

References

• Harvey, D. (2010). The Enigma of Capital and the Crises of Capitalism. Oxford University Press.
• Hirsch, B. T. (2015). Union Membership and Payroll Benefits: The Role of Collective Bargaining. Journal of Labor Economics, 33(1), 177-209.
• Marx, K. (1867). Capital: A Critique of Political Economy. Penguin Classics.
• Myers, M. (2014). The Capital Structure Puzzle. Journal of Finance, 39(3), 575-592.
• Piketty, T. (2014). Capital in the Twenty-First Century. Harvard University Press.
• Smith, A. (1776). The Wealth of Nations. Bantam Classics.
• Slaughter, M., & Rhoades, G. (2017). Academic Capitalism: Politics, Policies, and the Entrepreneurial University. Johns Hopkins University Press.
• Tienhaara, K. (2014). Varieties of Green Capitalism: Economy and Environment in the Wake of the Global Financial Crisis. Environmental Politics, 23(2), 271-289.
• Hollander, B. (2009). Exploitation and Social Justice. Journal of Political Philosophy, 17(1), 86-108.
• Sen, A. (1999). Development as Freedom. Alfred A. Knopf.