How an economic system operates in a society and how the functions aid shaping external events are due to current conditions. All systems are fallible, what truly matters is those in power to change it and operate it. If the country passes a policy that has an adverse effect, it is our fault for not learning the intricacies of a system that enables us to further our ambitions as a nation and individuals of society. Capitalism is not perfect. In the capitalistic society we find contradictions left and right. Power straddles the side of those who have money and political influence. The poor remain poor until luck catches up with them and others become wealthy through the struggles and loses of other.
Marx was a benefactor of the whole "Down-with-capitalism" thought. Marx, was a socialist and he abhorred the thought that people were suffering in a capitalist soicety because power and money layed in the hands of a small and selected few. His remedy to capitalism was socialism. Marx forsaw the consequences of capitalism, but failed to prophesy the failings of a communist state. A state where wages and prices are fixed at the governments discretion, he failed to notice that while wealth and power was distributed according to the government, no system can curb the natural and innate behavior of men with money and power. Thus, a communist society gave the government too much power and the government in affect capitalizes off the wealth of the state.
According to Keynes, Capitalism can not grow and subsist with out equal spending and investment. Years ago before the Western world latched onto Keynes theory of aggregate demand, we rested our hopes on doubitable economic theories such as Say's law, blindly followed Smithonian theories and Marshall law until Keynes offered his theory to the quailing world. In 1914, WWI was the effect of kingdoms expanding and changing, turning into nation-states vying for power. The world went to war, but everyone was ignorant to the economic affects of war. After the war, the great powers meant and decided the faith of Germany (Treaty of Versailles). This treaty was meant to strip Germany naked. As Keynes had put it before he left the treasury,we cannot expect a nation that is practically collapsing to produce nor give more than what it has left. A failing nation has nothing to offer; Germany lost its security, defense, the confidence of its people (people dying and barely living, and resources.
Thus, the hoarding among the few nations against Germany was what brought about WWII, Germany we find would not be defeated. Although, Keynes believed that war was a great way to prime an economy, I do not think he would be against another war. His answer as to how to aid those who took the heavier blows of any war would be government intervention
Throughout history, we find something of economic value in every event taken place. For example the cold war, a war (non-physical) between the U.S. and the USSR over ideologies that determines the functions of not only the economy but the government. To the communists, Capitalism was seen as a system meant to steal from its own people, hoard the wealth, and further the United States imperialistic ambition under the umbrella of capitalism. Capitalists viewed communism as an atheistic notion, a threat to democratic ideals.
Vladimir Lenin (Russian Leader) had believed that all conflict was the outcome of imperialistic ambition. He had thought that by building a communist state it would stop imperialism. Vladimir Lenin’s ideology:
1. Capitalism leads to unlimited competition
- An economic system in which wealth & means of producing wealth are
privately owned (Government interference is very limited/Free Market Economy) eventually this wealth would be too concentrated
- In international society unlimited competition necessitates Expansion of
Markets;in which more countries are required to market products, which leads to imperialism
To have access in other countries markets, countries Imperialize and that leads to
Communism: Egalitarian state (based on all are equal). It is a classless and stateless society. Based on common ownership and controlled of the means of production.
These two supreme theories shaped our world and everyday decisions. There has always been a misconception on both parts. In the end both would try to expand there elite notions for political notions and especially economic. Globalization connects us all, it connects us in so many ways that we fail to realize how one act can have a ripple affect. Globalization has allowed nations to thrive through the aid and political connections we have with each other.
No comments:
Post a Comment