Capitalism produces poverty Research

Capitalism has three central elements which are; price system, competition and capital accumulation. Economists argue out that the fourth derivative needed is growth. Though having many advantages, capitalism has been viewed also to be the number one producer of poverty as it literally enlarges the gap between the ‘haves’ and the ‘have not’. This paper narrows down to discuss how this capitalism produces poverty and even goes out further to give out tangible visible evidence as outlined below. Body Firstly, capitalism requires a loser in every winner. This is as a result of capitalism. There is no other strong evidence of a poverty stricken economic system more than that of a capitalist economy (Amelia, Steve, and Tim 520). Secondly, capital should not become the end game but rather it should become a means to the end.

Through capitalism, the pricing system is manipulated then cartels crop out that control the various important aspects of the economy thus ensuring that money enters only in pockets of a few and the world majority become losers as they have insufficient money thus they lack economic power and thus the cementing of poverty. Cartels creation leads to the amassing of wealth for the sake of amassing wealth. This actually shows that relative poverty and absolute poverty are a direct result of capitalism. The dark secret behind capitalism is that it relies on low worker wages in order to maintain organization profitability. This is the reason as to why communists or socialists argue out that production should not be for profit but rather for use and that there should be free access to all goods and services.

This is somewhat unrealistic too in its own way. Poverty is not entirely as a result of capitalism but it goes without saying that capitalism plays a big role in its creation (Milja, Steve, and Timothy 260). Corporate decisions in a capitalist organization for example aim at either reducing worker wages, or reducing the number of workers or even in some instances reducing both. They replace high paid workers with workers who are willing to do the same work or more with a lesser pay (John, Nicolas, Rengger 142). This on the other hand is increasing the corporate profits. Capitalism also increases the poverty rate because capitalism economic system also aims at controlling the politics of a given viable economic block. If all citizens in a nation are to truly vote for example, the interest of the workers will prevail over the interests of the share-holders and directors.

Capitalism has built a strong contrast with wealth and has defined what wealth really is and similarly what poverty really is. Capitalism serves as a way to allocate scarce resources just like communism and anarchy but still these scarce resources are distributed in the control of a few. Even in the very developed first world countries like the United States of America, the rules that govern the nation economy are made by capitalists. This is specifically for the purpose of increasing their power and their wealth. They do this at the expense of their ability to influence the government and at the expense of the working class. This is because in capitalism, wealth accumulation is never about working in order to be rich but instead it is about getting people to work for you to make you even wealthier.