The United States of America believed in Smith’s capitalism and the Soviet Union believed in Marx’s communism and the clash of these two powers reshaped the theory of economics forever. Capitalism and Communism are two entirely different economic systems. Capitalism is an economic system known for a freedom of the market. Capitalism can be very beneficial to the economy. The government will change over time, but with capitalism it can easily adjust to the changes.
It has been inevitable to question the relationship between social change and historical perspectives of time. Time discipline has been a kind of notion created that has over the years been turned into a paradox of which has been received well by capitalist whose perspective was entirely based on economic considerations. To a great extent, the time has been regarded a problem in sociology hence the coordination of time must be done inter-subjectively. Future time perspectives have always been a more problematic area when it comes to clarity and precision (Kristen, 2011). It is difficult and almost impossible to get consistent results in regards to the issue optimism in the future time.
This is completely unfair in my opinion and really enforces the capitalistic views that many nations are run by. So, because a region has a disadvantage and are in need of help, the hierarchy will come in and help you, but at what cost? The cost of doing things their way, by their terms. In conclusion, I hope that someday there is an international financial institution that is build off of a true democracy and that not only all people have an equal say, but that all regions, no matter what their financial situation, have an equal say as
This is due to the fact that privatization includes sweeping changes, often to “institutional archetypes which structure the governmental, societal, and economic arrangements and behaviours, it can be both challenging and problematic” (Carter 2013). Economies have been known to go into decline due to privatization and we cannot forget the social jitters, if not outright unrest, that can be caused by layoffs of large numbers of workers. Also, an increase in the unequal distribution of wealth can cause its own social and political
The first article connected it to political and economic liberalization. But the unequal power between conflict parties will let the socio-economic reality to be stark. Employment opportunities may be scarce, and a labor force with the necessary skill sets unavailable. And even in the recovery period A host of programming elements and policies will need to be aligned in order to create the economic conditions . this goes beyond fiscal strategies to include the repatriation of flight capital, accountable governance of extractive industries, and the effective management of infrastructural projects and construction
There are so many pressing issues which results into negative consequences of the globalized world. One of such tensions is the creation of a free market economy, which promoted a self-enrichment of developed nations against the developing countries in several ways; The relationship between the corporate organizations and the policies of the world bank, International Monetary fund ( IMF) and World Trade organization ( WTO), which were constantly influenced by capitalist states and led to the transfer of investments from developed economies to developing countries that have very weak laws. These corporations end up exploiting the poor people by paying low wages and buy raw materials cheaply in order to maximize profit. According to The Intelligent Economist; it’s a market that promotes the production, sales of goods and services with little or no control from any central government agency, firms and households act in self interest to determine how resources and expenditure are determined, how production is conducted and who buys the product. What is best for businesses and
Such challenges are unemployment, a widening income inequality as well as a skill gap. These are also cognizant of the fact that some inequalities are unavoidable in any free society. Factors such as dreams, talents and goals also play a major role in how people analyze their ability to scale up the economic ladder. When an individual works hard enough, they should be in a position to improve their lives (Shapiro). Despite all these variables, it is of note that a person’s zip code should be a condemnation on the increasing inescapability of economic fate.
Some of the major factors that affect the growing gap between the rich and the poor are the, labor markets policy, racism, technological changes, the culture, lack of proper education, taxes reforms, inequality in wages, also government facilitated initiatives can decrease or increase the inequality and some economists believe that even the globalization contributed to the increasing
Equality, like fairness, is an important value in most societies. Irrespective of ideology, culture, and religion, people care about inequality. Widening inequality also has significant implications for growth and macroeconomic stability, it can concentrate political and decision making power in the hands of a few, lead to a suboptimal use of human resources, cause investment-reducing political and economic instability, and raise crisis risk. The economic and social fallout from the global financial crisis and the resultant headwinds to global growth and employment have heightened the attention to rising income inequality. The impact of trade on the level and distribution of income has been a topic of considerable debate among academics and
Protectionism is coming to us from all directions, and numerous nations are using both direct and indirect barriers to trade, as when they require to do so. What economists mostly talk about are the threats of protectionism, rather than its benefits and how protectionism isn’t a long term solution. By now we have understood that protectionism, whether we like it or not, is used in certain economic situation by every other country, but it shouldn’t be seen as a permanent solution. Protectionism is a superficially convincing concept, because we can immediately point out the number of jobs saved, lesser no of imports etc. but it slightly more difficult to see the benefits of free trade in numbers, but one country’s protectionist policies will not just hurt their trading countries exports.
Our system is “rigged” – capitalism requires capitalists and laws are rigged to suit them and dominate our governance. The deficit of democracy persists despite our frequent and regular elections, which take place in a country where economic inequality brings fewer opportunities for the non-wealthy and preserves wealth’s