Monday, November 18, 2019

How Capitalism Works in Different Scenarios Coursework

How Capitalism Works in Different Scenarios - Coursework Example According to Hagopian capitalism is a social organization which is currently experienced in every country. In this type of organization, means that are used for production are owned by a minority group in society (capitalistic class). The rest of the population has to sell their labor in exchange for salary/wage (working class). Unlike the communist form of organization where a society has no classes, in capitalism class division plays a major role. Capitalism is best explained by Karl Marx who says a capitalistic society has two main classes; those who have (own the means of production) and those who have not. There may be the existence of other classes in society but the two are conceived as the major ones. According to Marx those who have are fond of exploiting those who do not have hence conflict will always exist between the two classes. This is what forms a capitalistic society and that is how it operates.Capitalism is the mode of production that is employed in our contemporary societies. In many societies today you will find the existence of the two main classes. Exploitation comes about when the capitalistic class uses the working class to their benefit. This is because as much as the working class is the one working on the ground the overall profits realized go to the capitalistic class. Costs paid by capitalists in the production process such as salaries are way too low as compared to the profits realized. These profits are then invested in order to generate more profits, leading to further wealth accumulation. When the working class gets tired they will result in a revolution and finally, the society will go into a state of communism. At this stage, no one owns anything and Marx asserts that the process will repeat itself.Blaut (127) explains the history of capitalism by first letting the people know the transitional debate history. Capitalism origins can be best explained through the commercialization model. ration to show how capitalism works is in factory scenarios, where a lot of people are involved in the production process but the profits are reaped by one person.

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