Inequalities Of Capitalism

The idea of capitalism represents and enlightens the perspective of freedom as well as equality. Normally, most adults, whether rich or poor, are protected and spend their lives under the same rules and legislation (Scheuerman). However, the possible presence of power and wealth in society leads to the nurture of capitalism. The nurture of capitalism is observed to lead towards economic inequality along with equality under the shelter of law. At present, in the United States, the richest 1% own 34% of the wealth in the country, whereas the richest 10% of the society owns about 74% of the wealth in the United States society (Scheuerman). A similar kind of situation is faced by the richest people in the United Kingdom, France and different countries around the world. Although variations in numbers are present, however, similar patterns are observed in different developed countries, highlighting the economic inequality nurtured by capitalism (Zhang). Even though various research articles highlight the role of capitalism in inequalities, however, large variations of measures are present for measuring inequality in developed countries.

Various research articles highlight the effect of inequalities of income and wealth with the role of capitalism in it. With the data gathered from twenty-three different developed countries, a negative correlation is observed between inequality and another variable, such as the mental health and community life of an individual (Kollmeyer). Even though economic inequality is an actual endemic to capitalism, however, inequalities in the society or any other developed country are not dependent on the aspect of capitalism only. Other variables are also involved while discussing inequality. The existence of various reasons for determining inequality suggests that capitalism is a way of lessening inequality to a significant degree (Kollmeyer).

In a capitalist society, the reasons for inequality have changed historically. The research highlighted that capitalism established and builds on inequality qualities of class, which are inherited by different generations based on their class, ethnicity as well and profits (Kollmeyer). With time, the ability of individuals to afford more opportunities eventually led to the generation of higher profits. Profitability increases/decreases with the change of location or ability shared in society (Scheuerman). The positive feedback obtained from the operation of markets magnifies the potential differences and core sources of inequality experienced by society. Lower wages are not potentially linked to capitalism as employees working on wages are not the slaves of society. Moreover, employees working on wages cannot utilize their lifetime to obtain loans and spend time giving back the loan. The very freedom enjoyed by employees in society is the actual possibility that labour assets can be used as collateral in the long run. Contrary to this, capitalists in society can utilize property and profits as a part of collateral to borrow money or even earn more money in the long run. Hence, the difference between those with and without assets gets magnified in case of crucial times (Scheuerman). Even with the burden of mortgages and other present-day expenses, wealthy people are still ahead in this race (Kollmeyer). Hence the aspects contributing towards capitalism have been widely associated with class differences and gender. Inequality in society has become strong due to many reasons other than capitalism.

To conclude, capitalism is the aspect where an evident difference is observed between different classes of a society based on the accumulation of wealth. The difference between wealth among people of society magnifies, especially in the crucial times when assets and profits can be utilized to overcome money issues. Even with present-time expenses and luxuries, capitalist people are still ahead in the race for development.

Work Cited

Kollmeyer, Christopher. “Income Inequality In Advanced Capitalism: How Protective Institutions Can Promote Egalitarian Societies”. Comparative Sociology, vol 13, no. 4, 2014, pp. 419-444. Brill, doi:10.1163/15691330-12341317.

Scheuerman, William E. “Capitalism, Law, And Social Criticism*”. Constellations, vol 20, no. 4, 2013, pp. 571-586. Wiley, doi:10.1111/1467-8675.12056.

Zhang, Tingting. “Does Occupational Licensing Increase Income Inequality?”. Academy Of Management Proceedings, vol 2018, no. 1, 2018, p. 10816. Academy Of Management, doi:10.5465/ambpp.2018.62.