2024-03-20
Capitalism is an economic system based on private ownership of means of production and operate for profit. This is the most widely accept definition of capitalism. Although, this definition provides a concrete view about capitalism, but in 21st century this definition does not provide any in-depth view of what it is. Capitalism now transforms into a socio-economic system.
Socio-economic system means that actors in this system act for money and the pleasure given by the system. In this system, actors work to get money as much as possible, to access the benefits given by the system. Every actor, from workers to capitalists works to access these benefits. For instance, let’s take three persons A, B, C, where A sells high-end super expensive cloths. B likes high-end cloths; to access the cloths offered by the A, B starts his own enterprise, where B offer luxury fashion accessories. C works in a Finacial organisation, where C earn higher wages compare to other workers. C has keen interest in luxury fashion accessories, which get bought from the B.
With the help of above imaginary scenario, we can get a picture of what the capitalist system looks like. It is an interconnected web of billions of such actors, who works not solely for gaining finance, but works to get money to access the benefits offered by the system. In doing so, actors offer their own service or product. Each actors wants to get as much money as possible, to access as much as possible amount of these services, which makes the whole system unique. For this, actors need money to access the services and products offer by capitalism, as actors works for money, no one give free services or products. Which creates competition among actors who are proving same kind of services to same kind of peoples in same space from a worker who providing some services to the big corporations.
One other key aspect of capitalism is that actors who purchasing these services, wants to access the services as much as low cost, which drives competition among actors, that are providing same kind services, as consumers wants to access these services at lowest cost.
Actors want to maximise their profit and access benefits at lowest price. Which drives much of the inequalities and exploitations. As actors wants to maximise their profit and want to expend as little as possible, this leads to wanting to give the lowest possible price to other actors whose services and products needed in the process of delivering the services. For instance, let’s take A, to deliver A’s products, A has around 1000+ people workers for him and A also required financial, transportation services from other actors. In order to maximise A profit share and spend as little as possible, A paid less to the workers work for him and constantly searching for other service providers who do the job in most cost-effective way. As there are multiple service providers who provides services needed by A, and A want most cost-effective service providers, it creates competition among these service providers to deliver their services in an optimal way. To do this, other service providers interested in paid less to the workers work for them and wants other services they used in cost-effective way. From here, cycle run again. Actors wants to access benefits at lowest possible price and maximise profit, which creates exploitation and inequalities. As the whole system operate in this manner, no one have other options, actors must do this. A worker must deliver services at a lower cost, if not some other worker, who providing same services at lower and equal or higher quality will replace that worker. Same is true for business and corporations. If you are not providing most cost-effective services or product, you will be replaced by someone else.
Generate profit and access benefits at lowest possible cost, drives much of the expansion's that we saw over the past two centuries. Our drive to gain finance and access benefits is so strong that, capitalist values and practices penetrated other aspect of the life. For the reason being access the benefits and gain money, causes always to have some group of people, who defenced the capitalist system. If someone speak against or work against the system, some groups will come to defend the system. Our wants of earn more and spend less caused multiple levels of social conditioning happened by various means for centuries. Because of that now drive for money is in every aspect of life, not only in economic aspect, also in social, cultural. Our obsession with money formed cultures, which are setup around the money. where people constantly want to get more and more money, consume huge number of services and goods.
The culture of money and consumerism, where society has strong shared belief in money or in some numbers show in a screen. And we can use these numbers to attaining things and services according to wish. As long as we have this belief on money and consumerism culture, capitalism will self-sustain itself. As long as our belief in money and consumerism remains, there will always be some people who emerge, who will continue the system, protect and expend the system. If our belief of both of this thing remains, even if communist or socialist rule or society emerges, within the communist or socialist rule or society capitalism will emerge again. It was one of the Marx's flaws that he underestimates the role of idea, and solely gave importance on mater as the driving force of change in society. Our belief on money and consumerism are the reasons by which capitalism emerge again and again even in serious economic challenges. If there are culture of consummation, people will always start ventures, people start working for someone or start his/her own venture to earn money to access the products available.