Despite the predominance of capitalism as the mode of production in the current global economy, communism, independent production, slavery and feudalism have remained active in the production modes in the society. This analytical treatise attempts to explicitly explore the tenet of existence of other modes of production besides capitalism in the present society.
Through the universal principles of intelligible strategies, governments across the globe are keen on production interventions that aim at protecting the infant companies. The governments operating on this assumption have to ensure their own survival by protecting their industries and trade policies.
This action represents the communist production mode which is characterized by the need to serve self interest above the interest of the competitors. The prime principle of communism is featured by interconnected holistic phenomenon. The conscientious citizenship needs to perceive the global interrelationship since the world is marked with inclusive model of integration; the world explores several events and issues based in global linkages which may become desirable when favorable to native economy.
Socialism functioned on policies that accumulated species is necessary for optimization of domestic resources in pushing for economic goals of a colony (Lee 43). Specifically, China has remained unapologetic to the global production market in practicing socialist modes of production.
Among countries that practice socialism in hiding include France, Britain, Netherlands, Spain, and Germany. These economies are manifested with emergence of mass society not only in terms of social interaction: mass culture, mass welfare, mass consumerism, and mass communication, but also in numerical sense of unique population increase.
Alone, a territory may be vulnerable if it doesn’t protect her economic gains. As the need for preservation of the specie became necessary due to expanding economies, the government intervention policies are applied to boost mutual growth and balance of sector survival for infant and established industries (Lee 51).
In the current century, China and Russia actively apply socialism as witnessed in the strong government control of trade and production modes. As the available raw materials such as coal, gas, oil, and agricultural goods stretches, China’s government has been keen on importing these raw materials which are then re-exported after value addition across the world.
Basically, this move is aimed at keeping the single party government in power as they can support economic needs of their industries, and thus limit anarchy. In the recent past, the government of China even requested its trading partners to vote for Taiwan diplomatic isolation due to territorial interests in the communist mode of production (Lee 29).
Slavery as a mode of production has remained a favorite in companies that function in states with poor labor policies. These companies thrive on discrimination and exploitation of labor supply to satisfy their selfishness. Since they are the masters of labor production tools such as wages, this group, comprising of just a small percent of the society, comfortably sits on the apex of Maslow’s hierarchy of needs pyramid.
For instance, the labor strategies in the export processing zones in the third world countries are characterized by exploitation and depression of labor unions to ensure that hybrid slavery with bare minimal remuneration supports massive profit making at the least possible cost of production. This trend is common in several states within the US where migrant workers from Latino and African descent are paid lower salary as comparator to the native counterparts (Lee 34).
In a perfectly skewed labor market, wages are supposed to be determined by the cost of production and total output. Unfortunately, this is not the case. Laborers are merely spectators of exploitation as feudalist system controls production mode. Reflectively, equilibrium and transitional wage differentials offer a valid explanation for the elicit labor differential persistence in the labor markets as part of the supply constraint.
Reflectively, homogeneous jobs and perfect competition within the labor market are critical in the labor supply matrix. Ideally, workers will have limited option apart from changing jobs until optimal satisfaction is achieved through the creation of a theoretical balance characterized by identical wage payment across same industry as instituted in the feudal system of production (Lee 33).
However, in reality labor wage rate variances are persistent in both empirical and casual rates despite the theoretical balance of the capitalism system. Besides, nonwage factors, such as fringe benefits, job location, job status, wage advancement prospects, earnings regularity, and risk of death or injury in a job have substantial influence on supply decisions since they form part of wage differentials as is the case with the feudalism system. For instance, feudalism has remained common in the labor market since most cases of labor imbalances are caused by private activities of the owners of production.
The welfare reform policy has been an important tool for solving income inequality problem in America trying to regulate income disparity through use direct taxes such as income and sales tax redistribution. Therefore, legislations within the new welfare reform act have created a favorable taxing system to the poor to help reduce income disparity. There is increasing number of people living in poverty. The new welfare reform act of has substantially reversed the trend by solving the income inequality problem through empowering people in the low income earning bracket. This confirms existence of the socialism economic mode (Lee 51).
Besides, the nation is in the process of being empowered to end the vicious cycle. This empowerment has been made possible injection of resources and capital to the low income bracket of the economy. In addition, the reform has made the welfare dependency and wordlessness better off since the act promotes personal and work responsibility. Thus, it is apparent that the new reform act is working and is geared towards success through the feudalistic approach.
As a variation of the market labor mobility, efficiency in ‘allocative’ contributors is significant in balancing the distribution of labor units between low and high employment values as part of the wage differential matrix. Reflectively, the value of marginal product determines the regulatory effect on perfect competition and wage differential.
The two components will swing until the regulator balances for employments sharing self efficiency on ‘allocativeness’ as part of the wage differential. However, this interaction holds in a labor market with perfect knowledge of all determinant variables operating in a similar employment industry. Due to similar experience, skills, and educational attainment, the wage rates are likely to balance as the regulator moderates the two determining variables in a constant mobility parameter.
Despite the perfect regulation, several interacting externalities are identified as determinants of efficiency ease. As a result, these externalities are associated with minimization of gains realized on efficiency metrics. The worst case occurs when pecuniary externalities interaction with ‘allocative efficiency’ further minimize these gains.
Unfortunately, this has remained as the most common case in labor relations as is the case in the independent production mode system. In different labor markets, across the world, wage differentials generate a recurring capital and product flows that interact concurrently to initiate an equalized balance on wages in the long term (Lee 29).
Type and form of fringe benefits are never universal in any typical production mode. Rather, they are influenced by the type of industry in which labor operates, ration and occupational groups as indicated in the labor market discrimination theory. This is due to the fact that governments and other agencies have introduced laws and regulations aimed at pushing for higher and reliable compensation.
In most instances, the blue collar employees have a larger share of the legalities, construed benefits than their counterparts in white collar jobs. The practice has been carried forward by most governments since the interdiction of the feudalist mode of production.
The basic building block of labor union is identified as the need for collective bargain and increased negotiation power. Labor unions are responsible for overseeing and formulating political ideology of the laborers, and if need be, mediate jurisdictional conflicts among members.
Besides, it is entrusted with the mandate of negotiating collective bargain treaties besides mobilizing workers in organized groups in addition to reaching out the un-unionized workers and encourages them to forge a common identity for expressing any dissatisfaction at work. The tenet of labor union activities is inspired by the socialist mode of production to protect labor as a factor of product (Lee 41).
The overall change in welfare for a household consumption is expressed in monetary terms. The overall net effect is an increase in welfare as part of the real changes in the income position of the target as is the case in the feudal system. From the above reflection, it is apparent that the other modes of production are operational in the shadow of capitalism.
Works Cited
Lee, Judith. The empowerment approach to social development practice: building the beloved community. New York, NY: Columbia university press, 2001. Print.