The Solution to the Economic and Political Problems of Capitalism Is Socialism - Coursework Example

THE SOLUTION TO THE ECONOMIC AND POLITICAL PROBLEMS OF CAPITAISM IS SOCIALISM Introduction Globally, capitalism is the most flourishing economic system known by every state as the only efficient way of generating wealth (Debs, 2013). The world economy lacks any other substantial system capable of benefiting common people as much as capitalism (Creed, 2002). Technological intricacy and production advancements are the main elements in capitalism applied in the constant generation of wealth. However, among the main challenges of capitalism is that it is not compatible with other customary ways of creating wealth and requires their elimination before successful implementation. Advancements in technology are the decisive facilitators of capitalism and only work after the discarding of other superseded factors i.e. obsolete factories, fiscal institutions and human skills (Gilpin, 2000). Generally, the system is very rewarding to flexible and competent but also castigates the redundant and less prolific. Some of the economic theorists and analysts refer to this as creative destruction (Rachman, 2012). Creative destruction is the key determinant of the failures and victors, especially for short periods of economic alterations. Moreover, it is the greatest threat towards customary public ethics, culture and organizations. On the other hand, capitalism comes with periodical recessions and downfalls resulting to problems for people, corporation and states. Capitalism, as a prevalent economic system, is a choice for many because of its distribution of wealth and rewards for the effectual and prolific but it also has a tendency of concentrating wealth, power and economic happenings (Feuchtwang, 2002). The states or groups that feel threatened by this tendency are usually stuck in position with sufficient power to rebel against capitalism or disrupt this system. Resolutely, these are the main political and economic challenges of capitalism as indicated by their prevalence around the globe. This paper focuses on the advocating for socialism as the best solution for the economic and political challenges of capitalism. Socialism entails societal and economic aspects as the main attributes of effective production and compliant management of the economy. Moreover, socialism comprises a political theory and movement aiming at the establishment of a system that creates a substantial platform where both the weak and the strong matter through social ownership. Socialism’s main quality is social ownership that could act as a reference for entrepreneurial initiatives or even national, mutual and civilian ownerships of equality (Ainsworth, 2002). This is among the multiple features included in the discussion, which could form a firm basis for generating solutions to capitalism’s problems. However, even with offering socialism as the key solution, there is a consideration of the main determinants of success and discrepancies in different geographic locations i.e. markets or planning, organization of management in productive institutions and national roles in the achievement of socialism. Economic and Political Problems of Capitalism On a general scope, capitalism operates under the principle of individual rights in all societies. On political and economic platforms, it advocates for the free-market and freedom respectively (Debs, 2013). The free (open) markets, unobstructed cash flows and activities by multi-national corporations characterize rebellion in the worldwide capitalism system against a global economy. This facilitates trade fortification, bolted pecuniary coalitions and different kinds of frauds and cheating (Feuchtwang, 2002). Prominent nations and influential groups believing the intercontinental economy functions unethically, against their favor and particularly wish they could alter the system to their advantage and the disadvantage of others is the greatest threat to capitalism, politically and economically (Carter, 2001). Definitely, the international economic downfall experienced in the late 20th Century was a reflection of the progressing influence of intercontinental economic forces on the global economic and political affairs. This downfall rapidly spread to most parts of the world starting with Pacific Asia then to Japan and the rest of the world causing economic and political instabilities of local, transnational and even international economies (Feuchtwang, 2002). Nonetheless, the Capitalism system has the main challenges as inequality, instability and the hunger for dominance on the global platform (Creed, 2002). Surprisingly, one of the main aims of capitalism is creating equal opportunities for countries willing to participate in the global economy. Most theorists overlook the pervasive inequality resulting from the free market but liberals and interventionist liberals rank it among the major issues (Rachman, 2012). Realists and historical materialists seem to support through their contrary argument that through capitalization, globalization has long-term losers and winners hence states and societies should expect increased interdependence. As much as the growth of interdependence appears as a positive development, the accepted control of the global economy from powerful states depicts inequality that leads to poverty. Countering the lack of employment, education and health facilities in the poor countries should be among the key objectives of the global leaders (Feuchtwang, 2002). However, the most powerful states only fixate on acquiring more power and reducing the competition; the fact that they dominate the international market is not enough. Economic analysts have made suggestions in the past that in order for a Multi-National Corporations (MNCs) and International Organizations (IOs) to prosper under capitalism, they must establish themselves in the prevalent areas such as division of labor or have good relationships with international economic institutions such as IMF or World Bank (Feuchtwang, 2002). Realists link capitalism with instability and increased interdependence among countries resulting from the extensive use of resources to achieve success at an international level thus overlooking the domestic economic statures (Latham, 2002). Another factor linked to this notion is the environmental pollution and overconsumption of natural resources, which affects the stability of the countries’ economies. Technological advancements are essential aspects of development in the open global market but realists and other theorists’ purport this to be among the major problems eroding the control of states when they are unable to keep up with the developments introduced by MNCs (Gilpin, 2000). The interdependence in some areas around the globe also affects the stability of local economies and political statures because the world powerful states control the pace and direction of globalization (Creed, 2002). The leading states on the global market use their powers to reinforce their positions through attempts to link with more states that are dependent. These points have a certain level of rationality but they also acknowledge that the instability issue depends more on a state’s knowledge of the global market and strategies they implement. The developed states devise complex systems of industrial governance and trade as part of their strategies to cope with the integration that result from capitalization and globalization (Debs, 2013). Although, global integration, economically and technologically is prevalent, political fragmentation between developed and independent states continues to increase. The forces of the global economy as advocated by capitalism are the main facilitators of interdependence with different economic events diminishing the urge for cooperation among the leading states in America, Europe and Asia extensively weakening political links of the global economy (Feuchtwang, 2002). Appreciably, reforms have been among the key considerations such as the formation of the World Trade Organization as an attempt to counter the augmenting political and economic struggles of capitalism but no avail. The regulations administering trade, fiscal and other intercontinental economic matters are not sufficient for the current highly integrated and delicate international economy. However, contributors of socialism acknowledge that it has been of significant impact to the world with past evidence where socialist societies were able to come with long-term solutions (Ainsworth, 2002). Ethnographic studies provide theories and analyses relative to the modern form of social organization with innovative objectives that could apply to the capitalism struggles situation. In anthropology, the studies focus is not only in non-European countries but also applies for Western and Eastern Europe states with recurring themes including links with ethnic and national conflicts relative to cultural, political, religious and economic practices (Hann, 2005). Discussion In anthropology, socialism scrutinizes socialist principles and realism from different perceptions and even though it is a radical critique of consumerist economic communities, past ethnographic case studies depict that it would vastly influence capitalism leaving a conceptual legacy in the global economy as well (Hann et. al, 2002). Ethnographic Case Studies i. The Khoisan and Mutual Aid The Bushmen or the San have been subject to multiple discussions in anthropology relative to their social stature, particularly evolutionists and historical revisionists. The singular apprehension for the Bushmen focuses on the Marxist conception on ‘mode of production’. Despite the fact that most of the discussions weighed heavily on their ethnicity, pastoralism, farming, hunting and gathering, their political and economic relation are equally important relative to socialism (Barnard &Kropotkin, 2013). One of theorists focusing on the Bushmen was keen to state that most of historical discussions focused on the division and killing, yet their systems of formal ownership, were the key aspect for most of the economic and political events (Hann, 2005). This particular statement and the rest of the conception show a complementary attribute about the Khoisan society’s relations with property. Firstly, the most significant aspect is sharing, which is however not division of property equally. Nonetheless, they have the power, rights and freedom to dispose it according to their desires. Typically, the Bushmen are committed parties in exchanging relations in pastoralism and agriculture. In hunting and gathering, a common subject of debate, the main elements and questions lie under the link between impartiality and a scavenging economy. Most of the ethnographers agree the value of equality is prevalent in scavenging economies such as the Bushmen but face challenges if the community has people from different origins (Barnard &Kropotkin, 2013). However, some argue that impartiality is a constraint that other communities with a system such as the Khoisan’s eliminate. Technically, both perceptions have substantial rationality. The Bushmen had fierce impartiality and social pressure that would facilitate the aspect of equality in their systems. However, both groups (perceptions) look at either the influential or the hindering aspects failing to acknowledge both as probable elements of contradiction. Then, these contradictions influenced suppleness and adaptation, a prime reason to consider the Khoisan as advocators of transitions without the interruption of essential ideologies relative to important thought and ethics in their lives (Barnard &Kropotkin, 2013). This was the main influence to accepting settled exchange. Most of the herders, hunters and gatherers have exchange networks. Apart from the economic exchanges, some of the communities with these practices constantly exchange gifts due to events such as marriage and others as a custom (Barnard, 2005). Buying and selling between the different groups with these customs is a form of assistance. Definitely, such exchanges and economic practices depict the existence of comparative linguistics as one of the social features; however, the anthropological approach shows that despite the discrepancies, the Bushmen and other communities designed ways to uphold their social practices and in an effective way. Resolutely, sharing and mutuality (depicted by exchange) were strong attributes of the Khoisan’s association, not only in the economic environments but also in the community where all principles applied even in families (Barnard &Kropotkin, 2013). For instance, the Bushmen’s families particularly from different Khoisan sub-tribes such as the Dama and Nama had relations that broadly extended reciprocity by exchanging gifts during events such as confirmation, which was not a custom of the Bushmen. This is one of the primal examples where socialism, a prevalent aspect among the Bushmen, influenced the adaptation of customs such as exchange of gifts rapidly eliminating challenges of inequality. In fact, the continuous mutuality among some of the families created a standard kinship since those who followed adapted it as a family custom and others could eventually take on the practice, a depiction of flexibility (Barnard, 2005). Naturally, family was not about blood and marriage alone; sharing and affinity played well among the different sub-tribes without overlooking the inherent principles. ii. Victorian Socialism The emerging of Victorian Socialism was in Britain and took place at the same time with other movements such as theosophy, liberalism and conservatism. The main facilitators of its developments were customs, beliefs and circumstances but the main influence was the industrial revolution impact on the society (Litt, 2015). Victorian socialists emanated from an average and casual with substandard foreign influence; moreover, their arguments and perceptions focused most on Karl Marx’s works and bequest of others with idealistic, essential and conventional views (Wright, 2005). Nonetheless, the British socialism progression is also significant having most of the advocators of Victorian socialism such as Francis Bacon and John Ball. Generally, British socialism resulted from the Victorian society overcoming the values of conventional economics and the free market system among other essential aspects. Upon its formation, British liberalists and extremists seemed to take over the roles of influencing socialism in Victorian Britain, overcoming the initial dominance of Karl Marx’s works (Litt, 2015). Obviously, Marxism had vast significance and influence in Britain but in other states, other ethnographers dominated such as John Ruskin or the prominent John Stuart Mill. The main cause of this, according to speculations, was the vast democratic attribute of Britain at the time that made it surpass the other European states (Kideckel, 2002). Eventually, socialist ideologies developed to be the accepted upshot of the modernized ways of dealing with economic conditions. British socialism became prevalent at the same time the modern industry made crucial advancements for the first time. The socialist philosophies in England were products of the Industrial Revolution simply as a way of creating balance between the society and economy (Litt, 2015). However, during that time, the working-class conditions became an issue of debate in the media and it was all about cooperation, not competition (Wright, 2005). Robert Owen was a prominent figure for British socialism especially for his advocating of cooperative socialism. Significantly, being a philanthropist, social and labor reformer, Owen together with his followers founded a number of groups campaigning for cooperative socialism in Britain. In fact, they provided workers in the United States and Britain with excellent living conditions and additional training (Litt, 2015). This is among the main ways socialism developed in Britain providing long-terms solution to economic and political challenges (Kideckel, 2002). Groups formed by Owen and his followers enhanced the relationships between Europe and America; it was not a matter of competition by cooperation. Appreciably, Owen set the pace for other socialisms concerning religion, ethics and social labor but the most effectual in the transformation of organizations’ political and economic statures was cooperative socialism that eliminated competition is the British and American capitalist systems (Wright, 2005). As part of the Victorian socialism, Ricardian socialists focused on vast innovation relative to solving economic issues in Britain basing their theories on the works of David Ricardo, a renowned economist. The Ricardian socialists suggested an economic evaluation using societal conflicts, as the securities of the proprietorship classes were divergent from those of the bottom social classes (Wright, 2005). This was an extension of the Karl Marx theory on confrontation class associations. Surprisingly, even based on his works, Ricardian socialists were not supportive of some of his works, particularly his assumptions on private ownership as a form of invention hence comparing this with a joint stock company governed by the employees. Nonetheless, socialism was a popular word in Victorian Britain and it applied in solving some of the capitalist problems as an improvement of past theories such as Marxism simultaneously making improvements of employees’ working conditions (Litt, 2015). Some of the modern theorists overlook the influence of socialism in Victorian Britain as a revolution but its mystical features are prevalent, especially in industrial revolution. Evaluation of Victorian Britain shows socialism creates a platform campaigning against class struggle and liberal democracy through advocating for ethical and respect for democracy on economic and political platforms, as the general outlook (Wright, 2005). Socialism is a Solution Evidently, the Victorian and Bushmen socialisms have significant discrepancies; however, the two ethnographic case studies are rational examples of ways that socialism could apply as a solution for the economic and political struggles of capitalism today (Barnard &Kropotkin, 2013). As aforementioned, the key challenges are inequality, dominance and instability some of which Victorian Britain and the Khoisan in Kalahari encountered. Relatively, the distributive justice of socialism appears to the only rational solution for these challenges (Barnard &Kropotkin, 2013). Symbolically, the different sub-tribes of Khoisan represent the diversities in the global culture and socio-economic development thus, the best approach is sharing and mutuality, which should start locally and spread to the international platform. Additionally, given the attributes of socialism, its execution and combination with capitalism is inevitable. The corporate sector, under capitalism today has issues relative to competition and lack of efficient cooperation. In fact, they both apply as complimentary features for most of the dominating states on the international economic system (Rachman, 2012). Multinational corporations, International organizations and states in similar economic spaces advocate for cooperation only with an aim of attaining a mutual benefit, not to be confused with mutuality, an element of socialism (Overing, 2005). The cooperation for mutual benefit is popular even when there are dissimilarities between the markets and consumers. Relative to anthropology and socialism as a solution for such a problem, ideologies could work best as fuel for the engine that is capitalism (Debs, 2013). Throughout the prevalence of Victorian socialism, theories and ideologies were the key influence of organizational reformations, particularly in making the working conditions excellent for all classes. Marxism, as elaborated by the Ricardian socialists advocated for the segregation between top, middle and bottom level classes. Similar to the situation today, there exists a wide gap between developed and developing states thus, the different attributes act as determinants of their participation and position in the globalization hierarchical stature with the developing countries dominating (Kalb, 2002). However, capitalism (Marxism) could experience an upgrade from socialism (Ricardian socialist theories) and eliminate the contradiction between competition and cooperation as the main source of inequality and instability. Implementation of socialism would form a firm foundation for a strong relationship between the society and capitalists to develop better economies. Capitalism alone is similar to an untraced warhead that could land anywhere, most probably on the weak, poor and unstable populations. However, socialism would definitely reprogram capitalism focusing on vast and comprehensive agendum (Potter, 2005). However, only a few people understand the urge for socialism as the solution but a less complex elaboration would change their perspectives i.e. it counters private ownership of property, the consistent debate on social classes and inequality among all nations and corporations for the international market (Wright, 2005). According to the Victorian socialism, Marxism’s argument on social classes depicted the interests of the ruling class more important than the others similar to the capitalism situation where leading countries in the world focus on their own interests such as global power and dominance in the international market instead of collaborating with developing countries for further progress. The developing countries are the middle and bottom classes on global scale (Carter, 2001). With socialism, the perception would completely change as it focuses on fighting for the interests of general proletariat, which would mark the beginning of reforms on not only the economic and political lives but also the social statures. This is similar to the working class initiative in Victorian socialism where comprehensive engagements and association involved all units of class i.e. everyone working in offices and doing technical work. The idea of involving the whole proletariat shows political stability as one of the strengths of socialism (Spencer, 2005). Additionally, a society without divisions in ownership and classes, as advocated by socialism, creates a platform where all available parties can contribute, relative to their capabilities. Correspondingly, the Dama and Nama families (Khoisan) who would give gifts not as hunters, gatherers or herders, but as a society with communism, which eliminated any restrictions of taking on giving gifts as a family custom (Barnard &Kropotkin, 2013). With socialism, production would apply for development, not financial gains with mutuality as core element in contractual agreements. Moreover, technology would apply in the right ways i.e. eliminated monotonous grind. Today, information technology facilitates the success of most countries in international trade. However, the rapid changes and developments only lead instability if a country’s regulation policies do not entirely cover the local and international communications and transportation developments and changes. For instance, Second and third world countries attempt to enter the global market by using most of their resources but are unable to compete with the most powerful states (Latham, 2002). On the other hand, if the same countries enter into contracts with MNCs, the domestic population grows causing internal and external problems that lead to economic instability. With socialism as part of the implementation strategies, achieving stability would be about making the necessary decisions on the powerful capitalist states and MNCs that countries interact with because some of them gain at the expense of peripheral states and vulnerable societal groups. Generally, socialism, though as ancient as class society itself, is the answer to the interdependence and socialization capitalism created (Overing, 2005). Moreover, there are vast ways a socialist society could operate such as leaving the task of governing and making decision to the parties in charge of production and distribution, which would simultaneously reduce/eliminate interdependence and serve everyone. Conclusion With capitalism, inequality is one the most overlooked challenges yet it is a promising aspect in the development of the world economy (Debs, 2013). Typically, the communism would assist in countering of other challenges such as poverty, limitation of resources and lack of power on a global platform especially for the developing countries that have a lot of potential. Economic analysts, historical materialists and interventionist liberals agree socialism and its emphasis on equality is a potential answer to problems such as the inability to manage resources relative to the development pace and reduce the number of peripheral states and vulnerable societal groups (Kalb, 2002). Decisively, the idea of socio-capitalism would create a world without doctrinaire and with the major constant processes being nationalization and privatization depending on elements such as time and place. Definitely, understanding the overall contributions of socio-capitalism might be complex but the given arguments and ethnographic-case studies clearly depict what it counters or eliminate i.e. interdependence, inequality etc. Bibliography Ainsworth, J. 2002, ‘Religion in the Working Class Community, and the Evolution of Socialism in Late Nineteenth Century Lancashire- Case of Working Class Consciousness: Journal of Social History, vol.3, no.2, pp.355-380 Barnard A. 2005, ‘Primitive Communism and Mutual Aid (Chapter 1, pp. 1-19. in Hann C 2005) Socialism: ideals, ideologies and local practice’. London: Rutledge Barnard A &Kropotkin, P. 2013, ‘Mutual Aid and the Foraging Mode of Thought – Rereading Kropotkin on the Khoisan (Alan Barnard)’: African Studies, Lib-Com. 12 April 2015 Bevir M. 2011, ‘Introduction: Socialism and History- In the Making of British Socialism: Princeton’: Princeton University Press. Carter, J. 2001, ‘Post-Modernity and the Fragmentation of Welfare’: Taylor and E-Francis Library, vol. 2, pp. 37–258 Creed G. 2002, ‘Economic Crisis and Decline in Eastern Europe’, (Chapter 3, pp. 57-73, in Hann C. 2002 Post Socialism: Ideals, Ideologies, Practices in Eurasia) London: Rutledge Debs, E. 2013, ‘Capitalism is the Problem, Socialism is the Solution’: Before Its News. 12 April 2015. Feuchtwang S. 2002, ‘Remnants of Revolution in China’. (Chapter 10, pp. 196-214, in Hann C. 2002 Post Socialism: Ideals, Ideologies, Practices in Eurasia) London: Rutledge Gilpin, R. 2000, ‘The Challenge of Global Capitalism- World Economy in the 21st Century’: Princeton University. 12 April 2015 Hann C. Introduction. In Hann C. 2005, ‘Socialism: ideals, ideologies and Local Practice’, London: Rutledge Hann C., Humphries C &Verdery K. 2002, ‘Introduction: post socialism as a topic of Anthropological investigation (Chapter 1, pp. 1-28, in Hann C. 2002) Post Socialism: Ideals, Ideologies’, Practices in Eurasia, London: Rutledge Kalb D. 2002, ‘Afterword: globalism and post socialist prospects’. (Chapter 16, pp. 317-334, in Hann C. 2002 Post Socialism: Ideals, Ideologies, Practices in Eurasia), London: Rutledge Kideckel D. 2002, ‘The Unmaking of a Central European Working Class’, (Chapter 6, pp. 114-132, in Hann C. 2002 Post Socialism: Ideals, Ideologies, Practices in Eurasia), London: Rutledge Latham K. 2002, ‘Rethinking Chinese Consumption: social palliatives and the rhetorics of transition in post socialist China’ (Chapter 11, pp. 217-237, in Hann C. 2002 Post Socialism: Ideals, Ideologies, Practices in Eurasia). London: Rutledge Litt, D. 2015, ‘Victorian Socialism- An Introduction’: The Victorian Web, 12 April 2015. Overing J. 2005, ‘The Anarchy and Collectivism of the Primitive Other: Marx and Sahlins in the Amazon (Chapter 2, pp. 20-37, in Hann C. 2005) Socialism: ideals, ideologies and local practice’. London: Rutledge Potter J. 2005, ‘Socialism and the Chinese Peasant (Chapter 10, pp. 152-168, in Hann C. 2005) Socialism: ideals, ideologies and local practice’, London: Rutledge Rachman G. 2012. Why I am Feeling Strangely Austrian: Financial Times, 12 April 2015 Spencer J. 2005, ‘Anthropology and the Politics of Socialism in Rural Sri Lanka’ (Chapter 7, pp. 106-122 Caplan P. Socialism from Above in Tanzania: the view from below and Chapter 4, pp. 59-76, in Hann C. 2005 Socialism: ideals, ideologies and local practice), London: Rutledge Wright S. 2005, ‘Working Class’ versus ‘ordinary people’: contested ideas of local socialism in England (Chapter 16, pp. 249-268, in Hann C. 2005) Socialism: ideals, ideologies and local practice’, London: Rutledge Read More