Examples Of Predatory Capitalism

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Bill is a “common man.” He works at the factory, 8-5 every day, including weekends. It is the only way in which he can provide for his family. While at the factory one day, the manager comes to the floor. They are all told that they will be facing a pay cut in order to “save the company.” One worker speaks up, and he tells the manager that if they all take a pay cut the manager should as well. The manager is angered, and he sends in their local government official in order to relax the situation. The official reassures them that the cut is a necessary precaution, and that their nation is in tough times and everyone must make a sacrifice. Bill returns home to his family that night with the sad news that they will not be able to afford basic…show more content…
Predatory capitalism is a form of capitalism where the markets are freed from most regulations by the government, and in turn they offer more opportunities to the upper class, allowing them to become the “predators” of the lower classes in turn for profit. In many ways this contributes to a rigged economy. As Margaret Flower’s and Kevin Zeese’s article “America’s Biggest Crises” describes predatory capitalism, “It is predatory capitalism that drives the race to the bottom in worker rights and wages and that drives the dismantling of our public institutions and privatization of education, transportation, health care, the postal service, prisons and more” (Flowers and Zeese). Plainly from that definition predatory capitalism has a biased effect upon the economy. Predatory capitalism drives down worker wages and rights in return for money while also privatizing public institutions such as education and health care. This causes the people doing the privatizing to gain profits quickly while causing the workers and lower classes that use the public institutions to suffer. In turn those things lead to a rigged economy as suddenly the higher classes have an easier chance to prosper in society which rigs the economy into their favor. Predatory capitalism is certainly a strong factor upon the formation of a rigged economy, but a more basic impulse of humanity is also one of the root…show more content…
Herman is a multimillionaire. He is the owner of a manufacturing company which spans throughout the entire world. As time went on, Herman began to worry about his profits. Times were tough of course, with an increase in living costs and rampant inflation. The government, in order to stop the oncoming disaster, began to ask the rich to contribute more of their own money to the government in order to lessen the burden on those who simply cannot afford to pay. Alas, Herman’s money was his own! Why should he have to give any more money than the “common people” have to? He had to ensure his own financial safety if he wanted to survive. Herman went on to talk to his government, and convince them of the fully fledged effects that taxing him extra would cause. Because of Herman, and many others like him, the government changed its mind, and gave the rich tax breaks, effectively making their tax burden less than that of the working classes. Herman had ensured his own financial security, and as a side effect he had also contributed to a rigged economy. According to David Korten’s article “The Post Corporate World,” those who are fortunate enough to have basic resources and finances to live a prosperous life end up squandering their resources while other less-fortunate people are forced to live a life without the basic needs to live. Herman is one of those fortunate people; he is one of those people who
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