How Capitalism Creates Inequalities Supported by Our Institutions Paper Example

Capitalism sustains and embodies freedom Enlightenment agenda and inequality. Constitutionally, every individual has a privilege to enjoy the freedom equality and trade without any restriction. It, therefore, shows that most of the adults that includes the rich and the poor should have the fundamental right and the total privilege to trade and conduct their trading related activities with the limited resistance. Any attempt to restrict such individuals is a direct violation of the constitution and the trading rules and policies. However, with the powers that capitalism has on inequalities and wealth, it is true that capitalism in most cases tends to nurture a higher level of economic inequality in line with the equality under the rule of law. The essay will discuss how capitalism creates inequalities supported by our institutions and how inequality functions through for-profit systems such as food production.

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Research shows that the United States, for instance, the riches group of people is approximately one percent and it is surprising to realize that the same one percent owns the country's thirty-four percent of the total economic income. Economic imbalance and inequality remain among the most common problems in the United States and the larger part of the continent. It is a surprising fact that those that fall below the poverty line will continue to face the hard economic imbalance based on the system of economic inequality created by the richer capitalism groups. Unlike the communism that believes in the spirit of sharing, capitalism fears distribution of the wealth equally to everyone. Life is all about those who have the wealth and can present in on the table and prove their source of wealth or even the income.

Many people who benefit from youth donations could accept the wealth taxation as they would have developed new business ideas with the money. 'Wealth would by recycled to younger generations rather than syphoned away'' (Geoffrey Para 23). It would help to recycle from the older to the younger generation who has vibrant ideas. Youth has energy and time but lack funds to sponsor their projects. Normally, the wealth tax should be imposed on the rich and famous individuals as they have enough money in their accounts.

The younger generations can generate ideas that benefit society as a whole as they genuinely understand the problem people are undergoing in the community. It is because they live and thrive together with those issues that affect the development of the city. However, there are numerous techniques of sharing influence and power to the people. Extension of employee's shareholding portions is considerably growing and accepted by many organizations. It increases the ownership of revenue-producing assets strategy in the society as many youths benefit from the project both financially and innovatively.

Many organizations in the USA develop the employee-ownership schemes where they greatly benefit with creating new business ideas and increase their sense of belongings. They also employ the profit-sharing strategy where they divide the shares into parts. It increases the revenue of the company as well as empowering the employees on the wealth-generating ideas. The stock bonus is another technique deployed by many organizations to oversee competitions and rewards to the hardworking employees. It is a form of work motivation for the workers to enable them to continue to be active and creative.

However, employee ownership usually leads to increase incentive and job satisfaction among the employees. It creates a good coexistence environment between the employer and the employees as they feel a sense of belonging in the company. It also increases personal identification to all workers raising their work morale. According to the current capitalist economies, the involvement of employees in the company's decision-making gives access to develop skills in many education centers. It also enlarges the knowledge-intensive capabilities as many people learn different ways to generate income. Many schools offer business ideas to the students to minimize the level of social exclusion from the society members.

Integrated measures and skill develop policies are greatly essential to curb the problem of unemployment to many youths. It also helps to solve the issue of job displacement by the old workers who have long experience in the industry. The modern capitalist should ensure that investment and innovation dynamics are distributed to the young generation to spread the wealth. They should also ensure that the wealthy capital owners do not receive the global system but rather shared to the young people. Many organizations should enact measures to reduce inequality within capitalism to increase wealth generation techniques. It will ensure that production also rises as many ideas are created and practiced. Worker inseparability is one of the impacts of capitalism inequality in an organization, which tends to reduce the net profit due to minimizing output. The system of wages should change to accommodate the employee's grievances to ensure equitable capitalism.

Many employees have limited incentives in their skills investment as they have the freedom to change from one job to another. It creates low salary payment because of the increase in the number of unskilled employees as capitalism develops into knowledge intensive. Furthermore, it creates an inequality ground for young workers reducing their net wages. The organizations can use the compensatory measures to solve the problem by including all employees in capitalist economic schemes.

Further research shows that multiple harmful in most cases can result in the economic inequality in the several nations around the globe. It is also important for one to identify and analyze the possible drivers for the inequality in which capitalism is one of them. Capitalisms use several strategies possible to enhance economic inequalities that they think is the best mechanism to control the amount of wealth that circulates in the economic environment. As much as the society is likely to blame the capitalism, at some point in time, the difference in the level of talents and even the skills that individuals have can also be a major contributing factor to capitalism and also to the economic inequality. However, the difference in the level of skills and the talent is not sufficient to tell the difference between a huge gap between the rich or wealthy individuals and the poor or low-class individuals.

The Major Source of Economic Inequality within Capitalism

Capitalism has several sources that enhance inequality within the human system. Research shows that most of the contemporary capitalisms tend to implement on the existing history of capitalism and work towards enhancing capitalism in their lives. Collaboration and even formation of the party among the wealthy individuals is one of the reasons why they have higher possibilities of securing a chance for the loan. Under normal circumstance, most of the capitalism group would prefer compensation regarding the money aspect. Additionally, through capitalism, economically stable individuals would continue to accumulate wealth as they become much richer while the poor remaining to be even much poor due to the availability of the restrictive rules and policies that tends to limit their ability to borrow and accumulate wealth.

Economic Equality and Food Production

Inequality of income in most cases has a direct relationship with the major sectors of the economy such as the in the food production process. Increased in the level of economic inequality will help in creating more of the consumers of the fast food products and at the same time prevailing a higher number of individuals who will be taking part in the food production process. It is true that most of the farmers and those that carry out hard labor or labor-intensive jobs are mostly the poor people. "All day long the children of Aniele were raking in the dump for food for these chickens," (Sinclair 19). The part on the quote is an Indication that most families from the low-class status revived a bad method of treatment. These groups of individuals would always work to satisfy the rich and the wealthy merchants who remain to be at the top of the economic status. People from the low income and exterior will have spent the better part of their time working in the hard plantation firms as a way of earning their daily livings.

How Class and Race Work against Those are in Need

Individuals from a higher social class in most cases tend to show a little disregard to those that come from relatively lower social status and those that are needy. Those from a higher class have a perception that the poor people should continue to serve them in various aspect of their lives. Additionally, they believe that people from lower social class should serve them and always remain to beg from them and continue to serve them as long as they exist. The class race believes that the society will not be perfect if it lacks inequality in the supply chain and the market. "Masses of laborers, crowded into the factory, are organized like

Soldiers" (Marx 34), shows the kind of lifestyle that those from the lower class lives. Research shows that those that come from a low-class status are the majority that offers a substantial market for their products. The social class shares the same characteristics to the capitalist who only believes that they are the best and they control the wealth, and they have a perception that the poor should work for them. Additionally, they also believe that the society can exist even without the needy people, a statement that is not true based on the experience and the fundamental role that this group plays in the overall economic income.

Conclusion

In conclusion, people have argued that economic inequality in most cases should be more of a political problem and not an economic issue. It is through the politicians who have the ideologies on capitalism that would prefer to enhance economic inequality. For instance, in the United States, most of the politicians and leaders prefer capitalism system to communism given that they believe that a nation that lacks economic inequality is likely to face a lot of economic challenges that might even end up affecting or scaring the potential investors. One of the Smith greatest concern was to work towards alleviating the level of economic inequality among the members of the public even though still he could not manage to succeed over that program given that most of the national leaders and the politicians had to oppose the amendment strategies. Capitalism in most cases tends to believe that a country without inequality is more likely to face several economic challenges that solving might be a bigger problem.

Works Cited

Hodgson, Geoffrey. Actually Generates More Inequality, 2018, Retrieved from http://evonomics.com/how-capitalism-actually-generates-more-inequality/

Marx, Karl. Manifesto of the communist party. Simon and Schuster, 2013.

Sinclair, Upton. "Is' The Jungle* True?." The Independent 60 (1906): 1129.