The current world order is characterized by the exploitation of its workers - Essay Example

The current world order is characterized by the exploitation of its workers." Evaluate this claim using Marxian theory Introduction Modern society is based on the model known as capitalism. Majority of people regard capitalism is an economic model; however, the model defines how society operates in the basic level. Capitalism, in economics, refers to a system where the means of production is owned and maintained by individuals and corporations (Rupert, 2003, p1). Nevertheless, capitalism in the social terms refers to a system where individuals in society are able to practice their individual rights. Politically, capitalism promotes freedom of action of individuals in a state, and it also results in a free market for all (Reiff, 2013, p74). A sizeable number of people are of the opinion that capitalism is the best model for society. Karl Marx was one of these individuals who opposed fervently on the consequences of capitalism on society and a country. In his philosophical works, Marx detailed the adverse effects of this economic model. In his sociological theories, Marx defines capitalism as the key factor that divides society into classes (Rupert, 2003, p183). These classes are because of their relationship to the various factors of production available in the country (Hoffman n.d, p235). This essay will analyze Marx’s theory on the exploitative nature of the capitalism, a model that ought to grant people freedom in society. Body According to Karl Marx, capitalism thrives on profits derived from the factors of production available. Corporations exploit their laborers’ wages to derive these profits; the corporations cannot be profitable without exploitation of workers (Bacher, 2007, p37). This conclusion by the Marxists is correct in accordance to the labor theory of value. This theory claims that the value of the product is dependent on the amount of labor put into producing the product (Rupert, 2003, p187). The workers create the value of the product. The returns obtained from the sale of the product are divided into profits, wages and cost of raw materials. This division of the returns favors the cost of raw materials and the profits generated by the corporation (Reiff, 2013, p41). The workers’ wages are neglected and do not reflect the actual value of their input into the finished product. The working class ought to be richer as they determine the value of the product. However, this is not the case because of how employers value their employees (Bacher, 2007, p52). Employers, often in possession of a factor of production, regard their employees in the same light as machines. Machines are subject to wear and tear; furthermore, they are replaceable once their value and productivity declines (Bacher, 2007, p54). These machines are often serviced, oiled and fueled in order to increase their production. Once they depreciate, the machines are replaced with new ones. Workers are machines, to the employers, in that they are managed as such. The employers acquire the employees; they are then trained and integrated into the system of the company. The employees’ wages are managed such that they see the need to return the next day to work (Bacher, 2007, p63). If the employees are granted a bigger wage, they will see no need to report the next day for work. This simple explanation illustrates capitalism according to the working class; a wage slavery system. Labor is a unique commodity, unlike the other commodities, it converts cheap raw materials into profitable commodities (Roemer, 2013, p.31). Labor converts simple businesses into billion-dollar corporations, but this does not reflect in the laborers’ wallets. Workers are often paid for their ability to work and not the value they add into a product (Reiff, 2013, p56). The difference between the former and the latter forms the surplus value of the commodity produced. This surplus value forms the profit for the capitalist. Profit, in capitalism, is because of a parasitic relationship between the capitalist and laborer (Bacher, 2007, p103). The capitalist contributes little to nothing to the labor and production process but benefits the most. The capitalist’s profits are the workers’ unpaid wages. From a neutral perspective, capitalism is truly exploitative in nature (Weeks, 2011, p29). Capitalism’s free market prospers on the idea that all transactions, by all parties, are voluntary and beneficial to all participating parties. This notion is only applicable in a utopian free market as this is not the way the real free market operates. The party with more capital has more freedoms than a party with less capital. This makes the ideology of beneficial exchange of resources futile, as one party benefits more than the other (Bacher, 2007, p94). Furthermore, the party with more capital often at times coerces their counterparts during transactions. In accordance to Marxist theory, the bourgeoisie often coerce the proletariat during transactions (Linklater, 1996, p282). The bourgeoisie is the upper class in society in possession of the factors of production while the proletariats are the workers who provide labor in society (Hoffman, n.d, p232). Capitalism is only operable if profits are viable and this results in a society that only thinks of profit. Society is altered to value people according to the profits that they make and this leads to an exploitative society (Bacher, 2007, p97). In capitalism, the bourgeoisie owns all the factors of production available in the nation (Linklater, 1996, p286). The individuals engage all the factors of production to make and maximize profits. Capitalism transforms labor into a commodity that has value known as wage (Roemer, 2013, p24). The capitalists dictate the value of the wage thereby controlling the livelihoods of the proletariats. Working, according to proletariats, is the only alternative to avoid starving. The more desperate a worker is, the cheaper the value of his labor. As we shall see later on, migrant workers, rural women and children are the most exploited lot in capitalism. Despite Karl Marx’s radical notions on capitalism, there is some truth to the exploitative nature of capitalism (Linklater, 1996, p291). Economic exploitation, evident in capitalism, is the unfair compensation of the labor provided in the production process. The capitalist takes undue advantage of the workers’ financial position to improve his corporation (Bacher, 2007, p68). This form of economic exploitation is evident in third world countries where factories award their workers meager pay for their labor (Bacher, 2007, p71). Their wages are usually in the south of the mandated minimum wage whilst their working conditions are poor. The laborers are oblivious of their situation because of the harsh economic conditions of their third world countries. They are not able to view capitalism as exploitative rather they view it as an opportunity to pay their bills and maintain their livelihood (Bacher, 2007, p84). Those who oppose the exploitative nature of capitalism argue that the workers in these countries willingly agree to work for low income (Roemer, 2013, p29). The first world nations benefit from the exploitation of these workers. In addition to exploiting workers, corporations exploit animals and the environment as they seek to increase their profit margins. Third world countries are not new to exploitation to further the course of capitalism. Over the centuries, exploitation has evolved from the slave trade followed by colonialism, imperialism and finally capitalism (Bacher, 2007, p127). All these practices share the same consequences, despite operating differently. They have deprived third world countries the opportunities to develop according to their own terms. The resources such as minerals, wildlife among others are exploited to benefit first world countries (Weeks, 2011, p68). In order to analyze the full extent of exploitation, third world countries provide the best case studies. First, third world countries are poorly compensated for their raw materials (Weeks, 2011, p37). Third world elites and little trickles down to the farmer who made it all possible receive the poor compensation. The exploitation of third world countries is apparent in all sectors; political, economic, social and cultural (Cox, 1981, p132). This form of exploitation weakens a country’s foundations, and it becomes very hard for the country to recover from the onslaught brought about by capitalism. It is a proven and well detailed fact that corporations such as Nike have factories in developing countries where child labor is practiced. Moreover, these corporations pay their workers low wages for their labor. This practice contrasts that of workers in the first world. These corporations provide poor working conditions for their workers (Bacher, 2007, p135). There are gruesome events in these factories where workers die in factory fires because of their inability to escape. Such cases point to the utilization of closed doors in the working place and are related to the Triangle Shirtwaist fires of 1911 in the US (Weeks, 2011, p41). It is apparent that the working conditions in third world countries today, are similar to those in first world countries in 1911. The corporations that utilize the labor of third countries ought to pay them according to first world conditions, as the products developed by the workers are meant for the first world. By compensating the third world laborers, an equal pay with their first world counterparts’ increases the living conditions of both countries. Conversely, this does not augur well with the corporations, as it does not increase their profit margin (Roemer, 2013, p47). The search for cheap labor, after the exposé of the sweatshops in Vietnam and Bangladesh, has taken a turn for the worse. The corporations use illegal immigrants to do jobs because they provide cheap labor. Besides, the immigrants are often undocumented workers and willingly provide cheap labor without coercion (Weeks, 2011, p45). Capitalists take advantage of these undocumented workers and their predicaments. In the process, the provision of cheap labor reduces the labor standard in countries such as the United States where this practice is common. Conclusion In conclusion, capitalism is fueled by surplus labor that is made available by cheap labor. This labor is absent in first world countries, and this is the reason capitalists are exploiting third world countries for their cheap labor. The corporations involved in this practice also employ child laborers as they search for cheaper labor. Capitalists, furthermore, increase their profits by exploiting resources from third world countries. Capitalism invokes a vicious cycle that oppresses the global proletariats for the profit of global proletariats. This cycle, according to Marx, can only be broken through radical action. The proletariat should revolt and implement a socialist system where everyone is paid according to his or her input. Bibliography Bacher Christian, 2007, Capitalism, Ethics and the Paradoxon of Self-exploitation, GRIN Verlang. Cox Robert W. 1981, ‘Social Forces, States and World Orders: Beyond International Relations Theory’, Millennium – Journal of International Studies. Vol. 10, No. 2, pp. 126 – 155. Hoffman Mark, ‘Critical Theory and the Inter – Paradigm Debate’ , Millennium: Journal of International Studies, Vol. 16, No. 2, pp. 231 – 250. Linklater Andrew, 1996, The Achievements of Critical Theory, International theory: positivism and beyond. Cambridge University Press, pp. 279-298. Reiff Mark. R, 2013, Exploitation and Economic Justice in the Liberal Capitalist State, Oxford University Press. Roemer. J, 2013, Value, Exploitation and Class, Reprint, Taylor & Francis. Rupert Mark. 2003, ‘Globalising common sense: a Marxian – Gramscian (re-)vision of the politics of governance/resistance’, Review of International Studies. Vol 29, pp. 181 - 198. Weeks John, 2011, Capital, Exploitation and Economic Crisis, Taylor & Francis. Read More