Capitalism on Wages and Income

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Introduction

Capitalism is an economic system in which industry, trade and factor and means of production are controlled by private investors or owners with an aim of making profit in a market economy. It affects the rate of capital accumulation, labor wage and the control of competitive market. This usually affects the economy of different societies since the government has no control over the economy. The forces of capitalism greatly affect the societies in that the poor continues to be poorer while the reach society continues to accumulate wealthy and become richer. It widens the income disparity gap. It influences both the economic aspect and social aspect of the societies largely. This mainly is influenced by the forces that determine the level of accumulation of capital among the different societies. This paper will consider those capitalism forces that bring the inequality in lives of different social classes within both domestic and global societies.

Capitalism on wages and income

According to David, (2002), In capitalist, what makes the money is the labor (Karl max). The poor classes will provide the labour needed for production. The capitalist take the advantage of labour and give the wage for the factors of production. The wage is not always equal to the amount of labour provided so there is a lot of exploitation. The capitalist is able to influence many people with the wage, therefore his profits becomes unlimited. He is able to achieve this through use of wealth accumulated earlier. Therefore, in the end the capitalist will continues to accumulate more wealth while the poor becomes poorer and venerable.

Wages are very dependent on productivity, always with wages lagging behind though increases in productiv...

... middle of paper ...

...lvement in capitalism.

References

Parker, martin, pearson, Gordon, 2005. Capitalism and its regulation: a dialogue on business etics. Spingers. Journal of business ethics. Vol 60 pp 91-101

http://www.forbes.com/global/2009/1019/opinions-steve-forbes-capitalism-true-love-story.html

Candice G, Charles L, and Linda W, 2004. In the Balance: Themes in Global History .Boston: ,McGraw-Hill. pp 912–17.

Henry Jackson, 2012. Toward a more inclusive capitalism. Park tower:Jackson’s society. pp12-16

http://www.huffingtonpost.com/2009/08/14/income-inequality-is-at-a_n_259516.html

Korten, David, 2001. When Corporations Rule The World. Berrett: Koehler Publishers; 2nd edition. pp 21-23.

David schweickart, 2002. .Against capitalism. Chicago:Westview press pg 57-67

Richard sennet, 2006. The culture of of the new capitalism. Yale university press. Pg 10-14

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