Economic and Political Systems

2284 Words5 Pages

According to the Oxford dictionary, capitalism is “an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state.” (Oxford) Over the past few decades, the world has witnessed a significant number of companies in developed economies move their factories to countries with looser labor laws and cheaper costs of labor such as China in order to increase profits and please their shareholders. As a result, more sweatshops in countries such as China have increased in number; most of which have horrible working conditions.

In this paper I will explore the morality of businesses’ decision to move factories to countries without labor protections, thus relying on sweatshops to produce cheaper goods that lead to increased profits. I will draw on the arguments and theories of Karl Marx, John Rawls and Robert Nozick to show that these business decisions that are enabled by free trade, do not serve the greater good and despite the benefits of economic development that comes through it, it is not enough to justify the infringement in the individual rights of workers.

I will start by laying out Marx’s communist theory from the Manifesto of the Communist Party to show how class stratification has developed over time. I will then draw on his critical analysis of capitalism in his Das Capital piece and show that his labor theory of value and capital is compelling in illustrating the danger of the exploitative nature of capitalism. I will then lay out John Rawls social contract theory in order to make plain the liberties that should be accorded to human beings. Through Rawls’s Principles of liberty, I will show that free-trade capitalism is unjust and suggest a welfare ...

... middle of paper ...

... necessary to institute a welfare system that mitigates the effect that are ignored in a free trade system. I have also discredited Nozick’s defense on libertarian views and shown that a free trade capitalist system is not only inherently exploitative but also provides a structure though which unconscionable infringement of individual rights of workers.

Works Cited

Marx, Karl and Friedrich Engels. "Capital." Capital Volume I. Ed. Robert C. Tucker. Vol. 1. London: W. W. Norton and Company, 1867. 3 vols.

Marx, Karl and Friedrich Engels. "The Mark-Engels Reader." The Communist Manifesto. Ed. Robert C. Tucker. London: W.W. Norton & Company, 1978.

Nozick, Robert. "Anarchy, State and Utopia." n.d.

Rawls, John. "A Theory of Justice." Rawls, John. A Theory of Justice. London, n.d.

Oxford dictionary, “Capitalism” http://oxforddictionaries.com/definition/capitalism

Open Document