Capitalism
Let us begin with the introduction of capitalism. This system has been deeply analyzed by both Marxists and non-Marxist writers. The hallmark of capitalism is the validity of private property. The capitalist thinkers assume and argue that man works for money incentive. In a capitalist society everyone is free to compete for expanding his wealth (Engels, 1843). The key ideas which legitimize the capitalist model are:
(a) Economic growth is essential for development;
(b) Man is selfish and everyone tries to succeed in life;
(c) If everyone works to promote his happiness the whole society benefits;
(d) Market is the best arbiter of various interests; and
(e) It gives full freedom to all to pursue their own interests. Thus capitalism is legitimized in the name of freedom and motivation to innovate.
Despite the above apology, there is a darker side of capitalism too. Among the major critics of capitalism, Marx asked the question that if capitalism is about freedom whose freedom is this. Capitalists are free to open, expand or close establishments but what does freedom mean to workers. Workers are free to seek employment with any capitalist but capitalist are not obliged to give them employment. In the pre-capitalist system there was exploitation but there was security of work. In capitalist system exploitation continues, though in a different form, but the security of work has vanished. The workers are not free to not to work or change the rule of the capitalism: the capitalists who own means of production hire them to generate more and more of surplus (the difference between their contribution to production and their wages). As a matter of fact with the accumulation of capital, and rise in the constant part of the capital (i.e., machinery, capital, raw material etc.), they may even find it difficult to get employment. This condition is marked by various types of surplus populations in all sectors of industry – manufacturing, agriculture and handicrafts. To Marx capitalism is good for expansion of capital but is exploitative for workers. He also adds that this duality of class interests is further strengthened by political, ideological and legal institutions that capitalism gives rise to.
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