Work Is Both a Moral Category and Economic Category in Capitalism - Research Paper Example

? WORK IS BOTH A MORAL CATEGORY AND ECONOMIC CATEGORY IN CAPITALISM Table of Contents Table of Contents 2 Introduction 3 Work as a Social category in Capitalism 3 The Basis of Morals in Capitalism 4 Role of businesspersons in capitalism 5 Economic Category of Work in Capitalism 6 The Division of Labor and Productivity 7 The Dependence of Division of Labor on Capitalism 7 Work is Both a Moral Category and Economic Category in Capitalism Introduction Capitalism refers to a fiscal system that is based on open competition, liberated market, and profit motives. Upon comparison to the government-initiated economy, capitalism tends to promote private business and investment. Capitalists refer to the individuals who have invested in the private companies with the aim of gaining profit and revenues. Capitalism, allows firms as well as the individuals to acquire the rights of owning and using wealth in the process of earning their income. The firms and individuals in capitalism also have the right of purchasing and selling labor without any government control. The market is equally a commercial society that is characterized by equilibrium or the balance between demand and supply. Another characteristic of capitalism is the balance between the jobs available in the economy and the population (Ito?, 1988 p. 4). Work as a Social category in Capitalism Work as a social category in capitalism is explicable using the theory of Capitalism as developed by Marx. In this theory, Marx states that the society is responsible for producing merchandise and services to the market. The division of labor characterizes the production process of the goods and services. As mentioned earlier, commercial society focuses on the social division of labor and the exchange of the commodities (Ito?, 1988 p.13). In capitalism, labor power is a commodity that is responsible for giving the economic structure an original appearance. Through the exchange, a social connection is established between the different producers of the market commodities. As a means of fabricating a large amount of products that are required to satisfy the demands of customers on the market, a significant amount of social labor is required. This means that social labor needs distribution in the market or the economy. Another characteristic of Capitalism is the ethical shopping that humanizes the activities involved in capitalism. There exist inequalities in the socio-economic capital as well as proceeds in the free market. Ethical shopping ensures that the inequality in the free market is reducible by reconciling the respect of human rights. In capitalism, the effects of the consumer choices about the workers who are responsible for providing goods and services are evident (Dine, 2006 p. 139). The Basis of Morals in Capitalism Capitalism is a moral system that exists socially based on varied reasons. First, the producers’ freedom is highly respected in the free market and, the individuals or firms have the rights of setting their own goals. Due to the fall of communism, capitalism is adopted by many nations with the aim of promoting growth and prosperity of their economies. It is recognizable as the only economic system that is practical. However, the state is gaining control of the free market because no firm or individual has been ready or willing to defend capitalism based on moral. As a means of maintaining high morals, the government as well as the individuals in the free market had an agreement where the government’s role was to play part in ensuring the existence of high levels of morals in the market. Following the agreement, capitalism has continued to encourage virtues that are essential in human life (Tracinski, 2002 p. 1). As mentioned earlier, Capitalism ensures that the independent mind of individuals is safeguarded at all times. Additionally, capitalism facilitates the recognition of an individual’s sanctity. The producers and creators should make sure that they produce products that will improve or sustain the human life. For instance, capitalism has led to abundant food for the workers and consumers following the discovery of better agricultural methods such as crop rotation and use of fertilizers. Through capitalism, the workers, as well as, customers now have a double lifespan as compared to pre-industrial era due to the advanced medical technology. In terms of transport, workers in free market enjoy airline transport that has speed and good air conditioning. Lastly, the workers among all the parties involved in capitalism can easily access important information on the worldwide web whose introduction was facilitated by the free market (Tracinski, 2002 p. 1). Role of businesspersons in capitalism Due to the possession of rights, engineers and scientists have been free in pursuing new ideas and coming up with new inventions. However, the businessperson has been ignored in the process of coming up with the new ideas. The businesspersons are important and responsible in transforming the ideas or inventions that have been developed by the engineers into reality (Tracinski, 2002 p. 1). Another role of businessperson in capitalism is to recruit and train workers that will contribute towards production of quality products. The businesspersons’ first need to cut the production costs so that the products offered are affordable to all customers. The businessperson must come up with best ways of marketing and distributing the products in the market. Lastly, this businessperson must measure his or her strategies and activities on how they are going to be essential in promoting the growth of the economy. All these processes are facilitated by the morals that the businesses persons possess in the market (Tracinski, 2002 p. 1). Businesspersons also have to use their morals in convincing investors, suppliers and the employees that their business is profitable and adheres to the social ethics. Failure to do so, the business will lose its best employees and potential investors will tend to invest in other competitive businesses (Tracinski, 2002 p.1). Firms and individuals in capitalism are controlled by virtues that are meant to make the lives of both the workers and customers better. The only way that these virtues can be respected is by letting the firms and individuals to handle and control them on their own, a characteristic of capitalism. It can be deduced that capitalism bans fraud or the physical force in the economy. All the decisions of the free market are normally left in the hands of the individuals and firms participating in the free economy. Moral is a category in capitalism because it allows the parties involved in the economy to dispose property and life based on their own judgment (Tracinski, 2002 p. 1). Economic Category of Work in Capitalism Capitalism depended on the economic enterprises and individuals where they competed with each other. The competition has led to the breaking up of the old communities whose regulations and traditions restricted innovation. A large number of people got the opportunity of becoming independent consumers following the rise in income, name brands, advertising, and the development of urban transport (Furlough, 1999p. 67). Work as an economic category can be analyzed by first defining the meaning of economics in capitalism. George Reisman defined economics as a science that involves the division of labor in the process of producing or generating wealth (Reisman, 1998:p15). Individuals in capitalism live by producing a number of commodities as facilitated by the labor provided by the other members or workers in the economy. Economics in capitalism is illustrated through the definition of wealth in terms of how the material goods contribute towards the well-being of humans (Reisman, 1998 p.15). According to Reisman, wealth generation or production is dependent on division of labor. For any economic system to advance, division of labor should be an outstanding characteristic. The output of labor has been rising progressively following the improved technology. Better machinery and tools have been a major characteristic of the improved technology that has led to high output per unit of the human labor. Concurrently, the absence of technology leads to the decline in the economic prosperity of a nation. The Division of Labor and Productivity The well-being of humans is dependent on the wealth production while wealth generation is dependent on the division of labor. The division of labor involves the breakdown of the human labor into distinct occupations (Reisman, 1998 p.173). This tends to raise the labor productivity in a number of ways. First, through specialization of employment, division of labor increases the production knowledge. It promotes innovations and inventions by scientists, which is also important in increasing the productions skills. Lastly, it enables workers who relatively have the same ability to concentrate in a given work. The learning process involved in production is made efficient (Reisman, 1998 p.173). The Dependence of Division of Labor on Capitalism Apart from freedom of trade, capitalism also involves individuals and firms in the market to own the means of production. The division of labor gains usually dictates the level of privatization of production means. The individuals in capitalism or free market have an independent mind that requires them to make independent decisions and judgments. The major benefit of the division of labor is that individuals can apply or use their knowledge and abilities freely without having to wait for any orders or permission from anyone (Reisman, 1998:p185). However, for these individuals to use their knowledge and abilities, they require wealth as a material means of production. Possession of wealth is important in facilitating the individuals in the free market to produce and act independently and separately from each other. Therefore, private ownership of property and production means is vital in ensuring that the division of labor is possible (Reisman, 1998 p.185). The division of labor facilitates exchange of commodities and money since an individual in the free market can produce only a few items though she consumes a variety of merchandise and services that are produced by others (Reisman, 1998:p191). In the free market, there should be extensive exchange of commodities and money. However, a special type of exchange must exist since the barter or direct exchange is not sufficient (Reisman, 1998:p191). From the illustrations above, it is clear that capitalism entails the division of labor that is essential in economic growth. Conclusion Individuals or firms in the free market have the freedom of making decisions. They also possess the rights of making decisions that will lead their businesses to higher levels in terms of the economic growth. However, the businesspersons should employ high moral standards so that they can attract good employees and investors. High morals by the businesspersons will grant them reliable suppliers, ensuring continued production of merchandise and services in the market. As an economic category, workers in a free market are specialized through the division of labor. As mentioned earlier, division of labor promotes production of quality products since highly specialized workers are involved in the production process. In addition, through the private ownership of the methods of production, a variety of products are produced which satisfy the needs of customers. In conclusion, work has a moral and economic category in the free market or capitalism Reference List Dine, J., & Fagan, A 2006, Human Rights and Capitalism a Multidisciplinary Perspective on Globalization, Cheltenham, Edward Elgar Pub. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=244919. Furlough, E 1999, Consumers against capitalism: Consumer cooperation in Europe, North America, and Japan, 1840 - 1990. Lanham, Rowman & Littlefield. Ito?, M 1988, the basic theory of capitalism: the forms and substance of the capitalist economy, Totowa, N.J., Barnes & Noble Books. Reisman, G 1998, Capitalism: A Treatise on Economics. Interim Edition. TJS Books, Laguna Hills Available at http://www.capitalism.net/Capitalism/CAPITALISM_Internet.pdf Tracinski, R 2002, The Moral Basis of Capitalism, Capitalism Magazine. www.capmag.com/article.asp?ID=1701 Read More