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Capitalism stands as the unrivalled economic system for the current time period. After the collapse of the U.S.S.R. the whole world can be considered as a stage for capitalism, and yet tis system is not well understood despite its dominance. Paul Bowles capitalism can be considered as a guide to capitalism as both an ideology and an economic system. It tries to answer some simple questions regarding the whole subject. What are the features of capitalism that have remained centrally unchanged throughout its entire existence? What are the different variations in capitalism and what are the factors responsible for these variations? How does time and place affect capitalism? Is it good for humanity? Is t a free and natural system of coexistence or does it advocate injustice and instability? And where the global business environment capitalism of today stand in all this? The book answers these and many other questions with a detailed analysis of this idea that has shaped the whole world. The book draws its references from of leading thinkers like Milton Friedman, Adam Smith, Francis Fukuyama, Karl Marx and John Maynard Keynes.
The book discusses Capitalism and the various factors that govern its predominance in the society. Its different types, variations across various economies, how it has evolved over time and its critics. Though Paul bowles may be judged as a reformist, a market fundamentalist, a radical and state welfare corporatist if the chapters of the books are read at random, but if the book is read sequentially the concerns of the author may be relatable for his readers. In all fairness Paul Bowles has provided the readers with a suggestive readings at the end of each chapter and a detailed list of references at the end. Though the point of the book is not to provide a thorough empirical analysis but raising a humane concern thus evaluating the utility of he book as a whole.
Paul Bowles also gives a detailed history of capitalism and its development. More essentially how the industrial revolution made the pursuit of profit over survival possible through mass production and mechanization. As the book progresses it pays attention to the critics of the 19th century labor system as well as those who had praised it and the benefits it provided. The book then treks along to the post 1945 era where capitalism achieves great success throughout the 1950s and 60s for major industrial and non minority countries and hen its fall with the oil crisis that started in the 1970s and shattered the theories and created neoliberalism. The book concludes with a variety of views on regionalisation and globalisation and he arguments of pros and cons that are laid down by various leading individuals of the economic and sociological spheres. Though credit needs to be provided to both the pros and cons perspective, the personal bias of the author is clear and in line with critics.
The Book can be divided into two parts. The first half deal with the definition of capitalism and Bowles makes it prominent that it is neither natural nor eternal. The second half deals with its history its innumerable amounts of variety that also includes a chapter on neoliberalism. The first part of the book elaborates on how capitalism became the most enduring system of economic stability in the current time period and whether it will liberate or destroy humanity as a whole.
He book begins with a chronological timeline starting at 1492 when Columbus discovers the Americas and thus begins the chronological advent of capitalism. It provides short notes on leading intellectuals of the field Including John Locke, Adam Smith, Karl Marx, Friedrich Engels, Lenin, John Maynard Keynes, J.K. Galbraith Milton Friedman, Francis Fukuyama and James Tobin. The first chapter elaborates on how an individual should observe capitalism as a whole and the author provides this individual with the proper tools to assess its functionality. It has explained how Capitalism over the years has endured many challenges while other economic ideologies have perished like the socialist era which came to an end with the fall of the Soviet bloc. But the author also clarifies that though capitalism is predominant it still faces a lot of threats. These include anti-globalisation movements that oppose the views of world leaders who say that capitalism leads to prosperity by arguing that global capitalisation leads to extreme cases of property and degradation of the environment. The book outlines three categories on how to assess capitalism. Abstractly by identifying the defining characteristics, normatively by assessing its strengths and weaknesses and historically by observing its variations through space and time. The whole book is structured on these three levels. On the first level, the author discusses factors that have remained constant and may be considered as the features that define capitalism.on the second level the author discusses the strengths and weakness of the structure and how it has evolved so as to stand the test of time. On the third level the author provides readers with the different variations that have given rise to global capitalism were the factors of the system change over space and time but the fundamental principles stay the same. The book concludes in itself on a short note that explains the fundamental flaws of capitalism and how they correlate to the mistakes made by society as whole when it identifies that only by maximising its profit can it have human freedom and how this thinking has deduced remorselessly the enhancement of human freedom. Though capitalism promises to provide a free economy which will, in turn, create a free society or utopia, human error will probably reduce the idea and take society as a whole to its destruction.
Karl Marx was renowned for his argument that argued strongly against the economic system of capitalism which inadvertently leads to inequality. He believed that capitalism creates a separation between classes that ultimately leads to situations or conditions that promotes a differentiation in the society, the Capitalists and the Working class. As long as a capitalist society exists there will inherently be class struggles. Marx and Friedrich Engels explained how capitalism is responsible for creating two cases in the society. They termed them as The Proletariat or those who represent the working class and The Bourgeois who were composed of capitalists or individuals who owned the means of production.
There is a struggle that exists between these two classes, as both fights for interests that are competing. The working class will always have an aspiration to get higher wages. This is possible in a utopia where self-interest does not exist. But capitalism is an aspiration to maximise profit for a single business while trying to beat the competing counterparts that deal in similar businesses and trades. And lowering the wages of the workers is one of the ways that guarantee more profit. The whole system of capitalism works on a single principle, success is completely relative to the profit that one makes. Thus capitalists will also find it impractical to raise wages as it would give the workers an opportunity to create competition. This competition would endanger the social position of the bourgeois and undermine their economic authority.
This division of classes eventually creates a situation where the greedy and selfish rise to the highest levels of social hierarchy and exploit the working class. The working class are denied of their fair share of the profits earned through the property rights concept.
Karl Marx published “Das Capital” or “Capital: A Critique of Political Economy” in 1867 where he illustrated how a capitalistic society creates this possibility of oppression. In Capitalism things usually, start with an individual who invested a certain amount of resources t establish a business. These resources may be personal or borrowed. This would involve creating means of production and hiring workers. These investments are done in with expectations for a higher profit. With time this business would earn a continuous profitability and this profit will never be shared with the working class labourers, this struggle between the two classes eventually that ultimately leads to chaos.
It does not require an economist to identify the fundamental differences between the developed and developing economies. Things like value of currency, GDP per capita, inflation are obvious differences. The population of a developed country will always associate unemployment with poverty rates. And it is justified by conventional wisdom where rise of unemployment leads to poverty. With a world living in recession, were developed countries like Japan, North America and europe suffer from high rates of unemployment and underemployment, millions are concerned about this situation. From workers who fear the inability to pay bills to students who fear unemployment and loss of income even when they are employed.
Recent studies have shown that there are no apparent relationships between the financial status of a country and the rates of its poverty. Some theories say that this situation is created due to too much underemployment and most of the population cannot find work that can lift their status from the standards of poverty. Studies have also shown that with the rise of unemployment in an economy the GDP per capita falls. Which concludes that there is an increase in poverty in such situations. Further elaborations on these studies have revealed that employment on a full time basis inadvertently leads to an increase in the GDP per capita.Proper context must be provided in order to understand the references of these findings. For example, most of sub- Saharan africa are predominantly reliant on living subsistently and not by earning through employment or the labour market. Thus in a general sense though these people are not engaging themselves in income earning jo they are still participating in an economic activity.
But it should be kept in mind that most of these population of these countries live in extreme poverty. In a lot of developing countries, subsistence agriculture causes unemployment only around the urban areas. Though individuals can earn an income by peddling on the street or by some other associated activities, they are still considered unemployed.
Thus by looking at a survey map of the Earth. It is possible to find United States having a higher rate of unemployment than economically weaker countries like Nigeria, Uganda, Chad, Sri Lanka and Turkmenistan where poverty rates are much higher. So a question arises amongst major economic policymakers and analysts on how to handle poverty based on these factors and how to provide remedies to such disproportions.
The same laws that are responsible for the regulation of the price of commodities are naturally also responsible for the regulation of Wages which is the labour-power’s price. As the competition between the capitalists or the buyers of the labour power, and the workers who are the sellers of this labour force, wages for workers will rise and fall accordingly, and in congruence with the supply and demand relation. Thus we can conclude that wages are decided on the basis of this antagonistic struggle between the bourgeois and the proletariat. And in most instances it is the capitalist who wins. It is mostly because a capitalist can survive for a longer period of time than a worker can without the capitalist. Other than that a landowner or capitalist can use certain industrial advantages that the workers can't as they do not own any kind of capital to earn an interest or rent from an supplement their industrial income.. Hence there exists an intense competition between the workers. And so it is only the workers who suffer from this inevitable, detrimental and seemingly essential separation. In this preoccupation landed property or capital does not need to be fixed nor does the labour of workers. But in reality the wages are governed by factors such as these and leads to an congruence between the workers and the detrimental capitalist.
The only necessary wage rate is the lowest possible income that needs to be paid to the workers so that they can sustain themselves and also support a family and also for the sustenance of the labour class as a whole. But in reality the ordinary wage does not have any compatibility with common humanity and workers have a cattle like existence. In a certain situations when the supply exceeds demand by a huge margin workers of a certain section descend into poverty and starvation. Thus a worker is brought under the same conditions that govern the existence of other commodities. And when the workers themselves become a commodity and cannot find any demand for his work product their life is completely governed by the whims of the capitalist owners. This leads to a situation where the capitalist owner can force more working hours on the worker without paying him appropriately for his work.
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2. Lankov A, Ward P, Yoo HY, Kim JY. North Korea's new capitalists and their workers: Business practice and labor relations. Communist and Post-Communist Studies. 2017 Sep 1;50(3):157-67.
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The study about individual taking decisions related to economic cultures and making sure that a business or a family is operated properly is generally described on the neoclassical theory of economic. Neoclassical theory of economy resume to be the behaviour of individual and economic condition who is operating or being operated by familiar or a firm. the objective of a theory is to ensure that the neoclassical theory focuses upon understanding the actual individuals of society. it is to ensure that the similarity with in the market is actually justified by the theory of new classical by focusing its assumptions and acceptance to the social outcome of the individual decision. the classical theory also helps in identifying large group of individuals who brought together could bring out a positive sense of businessoperation and success through the focus of firm vitalization.
Global crisis that majorly hit the world in 1970’s 2008 and 2009 gave birth to the aggresive thought of economical revolution. what's inside of the products would lead to the excess of profit and gain directly to the labour that would help them to support their families. Free radical economics also known as the liberal economist put forward the potential power of Universal act in front of capitalism along with exploitation. Information about capitalist theory clarifies that forward and economic growth along with development was to make sure that privatisation came forward with more impact.
Action of new classical economics theory, brings the assumptions of maximizing the game from the purchasing of goods are directly impacted by the views and ideas of the wire as they try to increase their purchase until and unless the extremities just balance by the amount that they wish to obtain from it. This information is also known as maximization of utility for better satisfaction of the common people in society is directly related to that of the consumption that they make of the services and goods.
In response to the radical economics theory, the assumption towards individualism and soil in a free manner is derived to be something that clearly places one out from the mainstream operation. Radical theory of Economics justify this as heterodox progressive and feminist along with institutionalist and post-keynesian people. Destructive expect over the market on individual as well as social stability is generally described in radical economics theory without discovering or deriving any information communities of class, gender and race.
Under new classical economic theory there is proper conceptualization of rational actors as agent. It is seen that the assumption of human being taking the choices to avail best possible advantages are all related to that of the idea that this bring out to make sure there is a better outcome of every action. The conceptualization of resource being price for gathering of goods and services are all connected with that of Technology for transforming resources and income of common people along with payment of taxes.
In accordance to the radical economics theory prominent liberals around the world have the policy are close enough to the right wing economic policies. The aspect of Finance industry and the authority of marks sheet in the society have address and analysed the structural power and inequalities.
As per the views and ideas of new classical economist agent or rational people are the prime determinant to make a society work properly to gather potential energy resources. The aspect of neoclassical economics have exams related to people being rational in terms of understanding their preferences are the outcomes that could be useful in identifying and associated with values. The ideas of new classical economics also include people being independent in terms of gathering relevant information and working best for the maximization of the profit that they buy from other places.
After analysing aspects of radical economist theory development of argument related to the information from that sense is layout carefully and effectively. Free radical economics on the political economist is quite difficult while applying in real case of existing socialism. Socialism that exist in society is not just an alternative to capitalism but also a particular impact over critical and transcendental society. The effect of radical economic theory is quite distinguishing when Shootout between enquiry and contingent mode of critical production.
Understanding about the new classical theory of Economics is not easy or as because several ways have been implemented in order to criticize every aspect of work to ensure a better future in understanding the Economics of society. The view of new classical economic world is unrealistic and it may offer to be too long to evaluate a scenario in Economics resulting in criticization of It in very general term of neoclassical vision. Action in rationality under the neoclassical theory of Economics is generally confused from the behaviour of purpose and real aspect of organisational work in society. With all the general views that were accepted in you classical theory of Economics are related to the corporation in modern world that take into consideration the marginal cost revenue for maximization of profit. The maximization of profit under the econometrician around the world, is all justified and appealed for reality check and intuitive defense of system moving towards equilibrium. Modern context related to the new classical economics links to complexity where the antagonist of heterogeneous act in new classical faradism remind dominant in continuously affecting and influencing the life of employees in the organization.
Berg, N. and Gigerenzer, G., 2010. As-if behavioral economics: Neoclassical economics in disguise?. History of economic ideas, pp.133-165.
The radio station that was used for broadcasting of information related to the adult standard provided by waste one was called as WSDE. The system of the station went into here in the year 1980 and on 1995 station evaluated and changed its call sign to WDCS. Worker self-directed enterprise is the full form of the abbreviated one mentioned above. It was actually a basic factor and a virtual name for a cure for capitalism. The worker self-directed enterprise as per one of the most prominent Marxist economist is not just the alternative to the top to down authoritarian capital is enterprise but a replacement for a better future. With the growing premises of WSDE, there is a situation which includes everyone and every operation under democratic rule. Their information and subject who are included under the field of Agent or workers on the line. The abbreviated form mentioned above work for or raises voice for the people who work in the bathroom or loading Dock collectively personifying the people who mostly do odd jobs. Making decision is not placed in a single hand but are collectively made with the proper idea of sharing all task and responsibilities and sharing the benefits and incurring the loss together. The common objective of WSDE is to preserve job and not to satisfy the stakeholders.
Starting a new organisation for a social organisation is not any way easier. Become worker self directed Enterprise in society by taking over an organisation will clearly have its own merits and demerits. However before merits and demerits an organisation to grow up as an independent one without any specific real leaders and every employees independent from their view of work will have issues clearly.
One of the critical challenges faced by workers self directed enterprise is the gathering or raising of capital since no financial institution would love to take a risk on an organisation which does not have a strong leadership control. The essential aspect of an organisation is to ensure success with proper direction and property reaction can be achieved if and only if there is a leader with democracy and not each and every employees working as individual.
Swititching of manufacturers are finding out the area or issues bring out the second challenge that may be encountered by WSDE. There can be a huge volatile nature of manufacturers when it comes to providing aid to WSDE.
Working as individual in total democratic position may lead to a situation of social mission issue. The situation would clearly the market the situation of low profit margin when buying of a product would lead to a giving of another one. Profitability of an organisation along with understanding the achievement criteria of customers in society plays critical role in bringing out the best of an organisation. Now with WSDE in proper place there can be situation where the social mission issues may not be as important as the freedom of work is to the workers in WSDE.
Last but not the least the management of inventory will be another aspect that may create challenges to the exact operation of WSDE. Now social entrepreneurs with individual thought and believe will not be able to ensure steady decision-making process that could evaluate the inventory is present from the manufacturer for future raw material utilisation.
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