The Idea of Capitalism
The development of trade relations among people primarily predetermined the emergence of property that can be both public and private. Today, a capitalist approach to the economy is a widespread phenomenon since the primary goal of most large and small enterprises is to earn money. However, from the point of view of some individuals who own substantial capital, the question may arise about how rich people become prosperous and why their capitals largely exceed the budgets of middle-class residents.
Similar questions are raised in the book by Reich who notes that “the rise of non-working rich is logical if the state economy allows private sectors to develop and gain profit” (144). This position is quite logical because in case the authorities do not restrict property rights and the possibility of buying and selling certain goods, great prospects are opened. Moreover, particular financial schemes can allow earning very large funds and increasing savings in the future. This type of economic structure is called capitalistic, and one of its central conditions is the right to private property and free trade within the limits of the norms established by the law.
Issues to Disclose
Despite a very detailed description of the capitalist model of the economy and the arguments about the property influence, Reich did not emphasize a significant focus on some relevant themes. The issue of sources of profit was not disclosed, which can be considered an omission. This topic is an important aspect of capitalism and its provisions since not all the methods of earning can bring greater financial profit on a country-by-country scale. Therefore, a number of questions may arise, which will be relevant to the topic of sources of earnings and control over the money of people with above-average income. One of the main questions may sound as follows: how do high-income people earn big money in an economic crisis, and can their ways of making money be considered legitimate and fair?
Additional Arguments
The answer to this question can be found in the work by Sexton, another sociologist who focuses on commodity-money relations among people and mentions the participation of the authorities in the process of distributing funds (48). Similar ideas but in a freer interpretation are presented by Neate who argues that “the increase in the number of billionaires is a natural process” since large businessmen’s savings are constantly growing, and the resources that they use (oil, cotton, etc.) are not lost. Such ideas are the clear features of a capitalist economy. From the legal point of view, the activity of billionaires is legitimate, and possible manipulations and schemes are a problem of the respective controlling boards.
Also, one of the judgments about the legitimacy of many businessmen’s activities belongs to Neate who is confident that the anger of average citizens is partly justified since the billionaires’ dynasties use various types of tricks to increase their wealth. The fact that different expensive purchases are constantly bought by big businesses irritates people, and it causes legitimate grounds in the suspicion of billionaires in fraud. Nevertheless, due to the promoted ideas of capitalism, this type of economy is dominant, and in order to correct something, it is required to completely reorganize the revenue reporting system so that the state could have a clear idea of the legitimacy of everybody’s earnings.
Works Cited
Neate, Rupert. “World’s Witnessing a New Gilded Age as Billionaires’ Wealth Swells to $6tn.” The Guardian. 2016. Web.
Reich, Robert B. Saving Capitalism: For the Many, Not the Few. Vintage, 2016.
Sexton, Patricia C. The War on Labor and the Left: Understanding America’s Unique Conservatism. Westview Press, 1991.