Capitalism is the economic system that advocates for privately owned means of production and distribution, where business are operated for profits. In nations with capitalist economies, business operators use their resources and decide on the prices they charge (Marable, 2015). However, no country is purely capitalist. The foundations of capitalism are, right to: (1) private property (2) freedom of choice (3) freedom of competition (4) own a business and retain its profits.
Why poor or under-employed may reject capitalism for communist or socialist state
In the socialist country, the government gathers all the taxes and distributes them equally to the whole population, which favors the poor person (Nickels et al., 2014). However, in a capitalist society, the poor man would lack basic requirements since he would not have the resources to get a degree or money to start a business.
The Communist Manifesto is phrased in a melodramatic language. It starts with an assertion that communism has been haunting Europe and may only be understood as a class struggles where the slave society allowed feudalism and feudalism to capitalism. Further, capitalism gave way to communism or socialism (Marable, 2015). The communist planks include ideas like eradication of private property in land; universal liability to labor; and the abolition of inheritance right. The communists’ make a declaration that the ends may only be achieved through a forcible overthrow of the current social conditions (Schumpeter, 2013). The ten planks are possibly written by Engels, considering 13 other similar planks were existent in the works “principles of communism” that acted as a precursor to the manifesto.
Capitalism argues that industrial development can increase of wages in the world. Further, the section on the accumulation of capital states that there could be higher wages with higher reinvestment of money, which would increase demand for workers to increase about supply (Marable, 2015). Finally, it is critical to consider that the Communist Manifesto was only a practical political program that was created for a political party during Marx’s early life. However, much of the Manifest Marx economics was abolished as his economic theory grew, which is a theory of increased poverty under capitalism.
Marable, M. (2015). How capitalism underdeveloped black America: Problems in race, political economy, and society. Haymarket Books.
Nickels, W. G., McHugh, J. M., & McHugh, S. M. (2014). Business: Connecting principles to practice (2nd ed.). New York, NY: McGraw-Hill/Irwin.
Schumpeter, J. A. (2013). Capitalism, socialism and democracy. Routledge.