Week Two Blog- Capitalism

Week Two Blog- Capitalism

According to Weber (1905), “Whoever does not adapt his manner of life to the conditions of capitalistic success must go under, or at least cannot rise” (p. 12). This statement suggests that capitalism shapes people’s choices by forcing them to adapt to the situation around them. However, I believe that adjusting a person’s life does not occur for everyone because people have different interests. For example, bosses and workers are impacted differently by capitalism because the bosses are not good at sharing their wealth, which is why capitalism is criticized for creating economic and social inequality (Kelly, 2020). Therefore, bosses may adapt to the conditions of capitalist success while workers remain reluctant to adapt, especially if the conditions only favour their bosses. The figure below is a clear indication of the one-sided nature of capitalism that could impact the workers’ willingness to adapt to the conditions of capitalist success.

(Source: (Davenport, 2018))

Adapting to the conditions of capitalist success is also influenced by some personal values and personality. Cole & Ferrarese (2020) argue that capitalism shapes a person’s relationship with others, capacities, sense of themselves, actions, and practices in the material world. Therefore, individuals with a personality that embraces collaboration with others may not be influenced by capitalism the same way a person who does not embrace collaboration is influenced. A person’s personality and values may also affect their perception of the conditions of capitalist success. According to Dolan (2014), the conditions of capitalist success include a two-class system, self-interest, private ownership, market mechanism, and competition. The two-class system consists of the capitalist class, which owns the means of distributing and producing goods, and the working class, which works for the capitalist class at a fee. The workers have a negative perception of the conditions of capitalist success because the conditions mainly favour the capitalist class. For example, reducing wages creates more profits for the capitalist class while limiting workers’ ability to earn a decent living.

Self-interests in the capitalist system are evident in the concept of the invisible hand, which suggests that a company can use capital to create profit for itself and the owners. Therefore, if a company only focuses on profit maximization at the expense of its customers and employees, then the customers and employees will develop a negative perception of the conditions of capitalist success, leading to reluctance to adapt. Private ownership includes owning the means of production and using resources to serve individual interests. Suppose a company or individual has total control over the means of production. In that case, they may create an unfavourable environment for others, leading to a negative perception of the conditions of capitalist success. Market mechanisms create a positive perception of the conditions of capitalist success for companies and consumers by regulating the relationship between companies and their customers. For example, customers are free to look for the best products at an affordable price, and companies are free to sell and market their products to customers. Customers may have more influence on the price of a product or service in the market based on their demand. Competition is applied to prevent the growth of monopolies that could impact the market mechanism, thus creating a positive perception of the conditions of capitalist success. Competition also improves the performance of companies because they have to create a competitive advantage. Competition also benefits customers because it leads to lower prices as businesses focus on attracting and retaining more customers.

References

Cole, A., & Ferrarese, E. (2020). How capitalism forms our lives. How Capitalism Forms Our Lives, 1-8. https://doi.org/10.1201/9780429317378-1

Davenport, J. (2018, January 9). 4 common capitalism myths debunked. FEE Freeman Article. Retrieved April 12, 2023, from https://fee.org/articles/4-common-capitalism-myths-debunked/.

Dolan, B. (2014, October 29). Main characteristics of capitalist economies. Investopedia. https://www.investopedia.com/articles/investing/102914/main-characteristics-capitalist-economies.asp

Kelly, K. (2020, August 25). What ‘Capitalism’ Is and How It Affects People. Teen Vogue. https://www.teenvogue.com/story/what-capitalism-is

Weber, M. (1905). Max Weber, The Protestant Ethic and the Spirit of Capitalism.

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you will read scholarly work on questions of diversity, exclusion, and inclusion. You will write a weekly blog reflecting upon those issues, but rather than offering an unsubstantiated opinion on these matters, you’ll be expected to offer a unique but informed opinion supported by scholarly research and empirical evidence.

Week Two Blog- Capitalism

You will have the freedom to choose the topic and the particular angle of the issue as you wish to explore it, but there are some clear parameters you’ll need to follow…

Minimum 500 words (15% penalty for falling short of the word count)

1 citation from academic source materials read that week in class. (Academic sources are attached at the bottom) This must be cited with a page number and author. Sources may not be reused week-to-week.

1 citation of an academic source (a relevant peer-reviewed article) from outside of class. Hint: Wikipedia is not an academic source. Sources may not be reused week-to-week.

1 citation of a news media article relevant to the topic.

At least 1 audio or visual element that adds substantial content to support your argument. This could be a link to a video, pictures, etc.

VIDEO: https://youtu.be/1mcCLm_LwpE