Both systems mean that Joe Blogg is forced to sell his labour for a wage and generally has little prospect of improving his lot in life. For all the talk of capitalism promoting invention and initiative, it in fact stifles these things - because the vast majority of people have little incentive to show these qualities so long as their wage will remain the same. They have no stake in their labour.
What is the solution? I would say a ban on all wage labour in the same way we ban slavery. Because if you enter into a contract where you are effectively granting another person the right to the fruit of your labour, you are selling away your freedom in much the same way as you would were you to become a slave, or abolish democracy. That is what wage labour is - making significant profit off of another's labour, and then giving only a portion of it back to him. That is theft.
We should force companies to redistribute their shares between their employees. This would also have the effect of gradually abolishing the division of labour, as individuals would have less incentive to develop large businesses. And by abolishing the division of labour, you would no longer reduce people to a part of an assembly line - allowing them to actually take pride in their work and have the ability to use their potential.
It would be a world without monolithic corporations or a monolithic state. It would be a world of small-business, of individual enterprise, where every worker is his own boss. This is what capitalists (especially in America it seems) idealise, and yet they support the very system that has for centuries been destroying such a world!
It might seem that this trend has been reversed, but it has not. The Welfare State, New Dealism etc in the USA might have for a time curbed the excesses of the capitalist system, but ultimately it has always been going in the same direction. The vast majority of the population are entirely at the whims of an increasingly tiny elite that controls the means of production and thus all employment. The social breakdown that is resulting from this fact is devastating. Consider the decline of regular, stable career jobs and the instability that that creates. Look at the rise of phenomena such as irregular employment, underemployment and the like. People are reduced to a life of endless adolescence, unable to be independent, to marry, to form the basic family unit that society is built upon. Meanwhile, those who do get the traditional, stable jobs are increasingly abused as the ever increasingly competitive employment system means they must subvert their entire lives to their work life to keep their jobs. What was once 9-5 is now 8-6, the increasingly international nature of business means that extended periods of travel is an expectation, rather than exception. Consider the impact on family life, on community life that that has. As I always say on this issue - look to Japan, that bastion of artificially, politically-imposed turbo-capitalism, to see where we will be in ten years time. We don't need to speculate about what will happen, because it is happening there already!
Another, more unique, development in these present evil times, has been the loss of stability that even class once provided. The vast majority of today's middle-class are not bourgeoisie, but, in fact, just wealth proletarians. Much like the shelf-stacker or the waitress, even the supervisor and the manager is a wage-labourer with no control over his destiny, and can find themselves reduced to destitution as soon as they are no longer needed by their bosses. And indeed, the tendency of capitalism to increasingly reduce the need for the labourer for the purpose of improving profit means that this is happening more and more. Whereas education once maintained the class system, its more equal distribution nowadays means that the sons and daughters of todays 'salariat' (the wage-labour 'middle-classes') are no longer guaranteed the life of their parents, but are instead reduced to the condition of the working-classes. The development of this phenomena within this current generation is going to have a major impact in shaking people out of their complacency. "It's one thing for some white trash on a council estate to live in poverty, quite another for my university-educated child!".
Anyway, for all the above reasons, capitalism should be recognised as fundamentally anti-social, immoral, and detrimental to human life. Anybody who respects the development of Western philosophical/political thought, of those that laid down the principles of modern democracy, ought to abhor it.
I honestly believe that the opening up of the Second and Third World markets has given capitalism something of an artificial extension onto the end of its life, and that when these are saturated, it will come crashing down in spectacular fashion. The very nature of the system means that it must grow to exist, but that can't be sustained forever. And eventually, things will get bad enough that people won't accept it anymore. Material gains will not always placate people in the face of its social devastation.
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