Capitalism and the American Dream

SOCI 2013 17 April 2013 How capitalist economy Affects the American Dream Capitalism is delineate as an stinting system in which the ownership of the means of toil- manage knowledge domain, factories, handsome sums of m stary, and machines is in private hands (SOC 10). hearty Philosopher Karl Marx strongly believed that in the end, capitalist economy manifestly wouldnt work for several unlike springs. His idea became known as Marxian action theory. While the functionalist theory examines groups order and cohesion, the encroach theory examines ways groups disagree and scrape for power.Marx predicted that capitalism would capture continuous strain between the put ons and the admit -nots the poor persons mostly being the minorities and the poor. He believed that capitalist societies would be decreased to ii social classes the capitalist class (the middle class or the rich) and the working class (the wear out movement or the poor), and that this division would event u tout ensembley cause some sort of social upheaval. genesis Y is in trouble with the old age to amount seeing as it is against the betting odds that one testament becomes part of the elfin percentage of deal that ar the capitalists.If our economical system remains the same, the generations to come testament become nothing more than workers for the bourgeoisie. Karl Marx gave five-spot reasons in concomitant as to why capitalism will fail. It will declaration in monopolies, inflation, unemployment, lack of income, and the wealthy lastly ruling the world and making the rules. This solely will result in bring lowd quality goods, p overty, poor legislation, and the great unwashed not being able to afford the necessities of life.The first off reason Marx gave as to why capitalism wont work is that in a capitalist economy, monopolies are infallible. A monopoly is when one provider of a particular commodity is the alone supplier. Monopolies eliminate competition. This giv es the supplier the power to charge mellowed prices and reduce the quality of the products because the consumers dont have any different choices. An example of this would be cable TV verses things like administer TV, the iPad, and Netflix. Not as many pack want to pay for cable when it is untold easier and cheaper to view television shows and movies n other ways. The same concept is happening to land line phones. Gasoline companies are lucid example of monopolies, in which the easiest mode of theodolite is a motor vehicle. In this case, flock eventually will have no choice but to purchase gasoline. OPEC (Organization of the oil colour Exporting Countries) now controls 46% of all the oil produced in the world, making it a huge global monopoly. Paying high prices for lower quality products will only cause more and more problems for prospective generations.The second reason Marx gave was that because there is no centralized planning in capitalism, heart and soul that over-pr oduction of products is inevitable, and in turn, causes inflation and depressions. Over production is when too many goods are produced and put up outdoes demand. Companies are left with stocks they cannot sell and are forced to shut down as a result. Another reason capitalism doesnt work is that unemployment levels are raised. Demands for press saving machinery force employers to let people go.The worldwide unemployment come out is 6% magic spell the United States, a capitalistic economy, has an unemployment rate of about 8%. According to Marx, unemployment is unavoidable in our economic system. Unemployment also plays into the tail reason Marx gave, which is that employers will try to maximize their profits by reducing labor expenses and firing people, thus creating a website where the unemployed dont have enough income to buy the goods produced, creating the contradiction of cause profits to fall, which starts the cycle all over again.The fifth, and perhaps the most startli ng reason Marx gave, is that the control of the state will be by the wealthy, the effect of which is laws benefiting themselves. The wealthiest 1% of people in the United States control 42% of the wealth in our country. Many of these tiptop rich are the ones that own the monopolies like the oil suppliers or are politicians that get along laws that are ultimately in their favor. regular(a) if a person in the generations to come were to work hard and have a good paying, stable job, it is still real unlikely that they will be one of he super rich, allowing them to be well(p) from the current and/or potential economic depressions. Thus, it is safe to conclude that Marx was correct in his predictions that a capitalistic country will eventually fail. Works Cited Amadeo, Kimberly. Monopoly. About. com. N. p.. Web. 15 Apr 2013. . Benokraitis, Nijole. SOC. second Edition. Belmont, CA Wadsworth, Cengage Learning, 2012. 9,10,14,151,152. Print. Kopicatsu, . Karl Marx Why Capitalism depar t Fail. The Escapist. N. p. , 16 Sept 2011. Web. 15 Apr 2013. lthttp//www. escapistmagazine. com/forums/ establish/528. 313395-Karl-Marx-Why-Capitalism-Will-Fail Top 1 Percent project 42 Percent of Financial wealthiness in the U. S. How Average Americans are Lured into Debt Servitude by Promises of Mega Wealth.. My Budget 360. N. p.. Web. 15 Apr 2013. . Unemployment. Wikipedia. N. p. , 13 Apr 2013. Web. 15 Apr 2013. .