Create a 8 pages page paper that discusses to what extent is inequalities in society an inherent consequence of capitalism. The major question this essay tries to answer is, to what extent are inequalities in society an inherent consequence of capitalism? Another line of the argument states that capitalism survives because of its capacity to reward well-performing economic participants. Within this perspective, inequalities reveal, primarily, differences in economic ability and levels of productivity among members of the society (Solimano, 1998). The discourse on the nature and consequences of capitalism, as it relates to inequality, has been largely dominated by key political thinkers, namely, Karl Marx, Max Weber, Erik Olin Wright, and others.
Contrary to assumptions that inequality is inevitable, needed, and widely valuable, Karl Marx believes that capitalism only creates inequality. According to him, inequality appears in society because some individuals and/or groups, especially those who have the means or capital, take advantage of or exploit those who only have their labour as a means of subsistence (Kendall, 2012). Basically speaking, the wealthy are wealthy because they exploit the needy. Marx observes that labour is the major source of value and the reason why some exploits and others are exploited. This unfair transaction takes place because of the unequal distribution of income or means of production which implies that only those who own the means of production benefit from wealth creation and the free enterprise. On the other hand, those who are poor do not have a choice but to work for or sell their labour to the owners of production (Kendall, 2012). This line of thought also states that capitalism’s productive value is hampered by an overwhelming interest in profit.
In other words, Marx’s critique of capitalism mainly focuses on the social relations surrounding the mode of production. .