In the political economy- capitalism, it's important to remember that the underlying goal always remains maximization of profit. Eitzen and Zinn (2010) state that "unlike Canada, the Scandinavian countries and the nations of Western Europe, The US focuses more on individual achievement and competition" (558). These are the grounds capitalism needs to thrive, and the U.S. feeds into them quite heavily.
The neoliberal approach to governance in the United States has enabled capitalism to flourish. The belief in individualism, rational choice, market liberalization and dominance and a minimal role for government in the development process, all work to perpetuate inequality. Individuals with economic and political power are able to determine and distribute the rewards, resources, privileges, and opportunities in society for their own benefit, using ideology to maintain their favored positions at the expense of others.
In order for pure capitalism to exist, four conditions must be met. They are:
1) Private Ownership of Property
--> individuals are encouraged to private their property and possessions. This creates the grounds necessary to produce and distribute goods and services (Eitzen and Zinn, p 393).
2) Personal Profit
--> Individuals are free to maximize their personal gains (Eitzen and Zinn, p. 393).
3) Competition
--> In a market of supply and demand, competition allows for companies to determine what is produced and how much products can be sold for.
4) Government Policy of Laissez-Faire
--> allows the marketplace to operate unhindered.
Furthering Marx's idea of class systems in capitalism, Weber expands on Marx's Bourgeoisie and Proletariat, to: classes privileged through property and education; technician specialists and lower-level management; the petty bourgeoisie (small shopkeepers, self-employed artisans) and the working class.
While Marx and Weber differ in the structure of class, both create paradigms in which a lower, less privileged class, and a higher, very privileged class exists. Furthermore, we can look at capitalism as a reason behind this polarization for the following reasons.
Capitalism as the political economy of society, prioritizes profit, thus maintaining and promoting poverty. In capitalism, private profit is what determines who receives what, rather than who is truly in need. This primacy of profit is what allows poverty to persist in that its basis depends on economic inequalities.
In that capitalism's biggest goal is maximizing funds as previously stated, the wellness of its citizens take a back seat to this motive. In other words, the less privileged do not, and will not receive much help from the government, as capitalism runs under a laissez-faire style of government. This helps the cycle of poverty, whether relative or absolute, remain in that citizens are often unable to break the cycle.
The neoliberal approach to governance in the United States has enabled capitalism to flourish. The belief in individualism, rational choice, market liberalization and dominance and a minimal role for government in the development process, all work to perpetuate inequality. Individuals with economic and political power are able to determine and distribute the rewards, resources, privileges, and opportunities in society for their own benefit, using ideology to maintain their favored positions at the expense of others.
1) Private Ownership of Property
--> individuals are encouraged to private their property and possessions. This creates the grounds necessary to produce and distribute goods and services (Eitzen and Zinn, p 393).
2) Personal Profit
--> Individuals are free to maximize their personal gains (Eitzen and Zinn, p. 393).
3) Competition
--> In a market of supply and demand, competition allows for companies to determine what is produced and how much products can be sold for.
4) Government Policy of Laissez-Faire
--> allows the marketplace to operate unhindered.
Furthering Marx's idea of class systems in capitalism, Weber expands on Marx's Bourgeoisie and Proletariat, to: classes privileged through property and education; technician specialists and lower-level management; the petty bourgeoisie (small shopkeepers, self-employed artisans) and the working class.
While Marx and Weber differ in the structure of class, both create paradigms in which a lower, less privileged class, and a higher, very privileged class exists. Furthermore, we can look at capitalism as a reason behind this polarization for the following reasons.
Capitalism as the political economy of society, prioritizes profit, thus maintaining and promoting poverty. In capitalism, private profit is what determines who receives what, rather than who is truly in need. This primacy of profit is what allows poverty to persist in that its basis depends on economic inequalities.
In that maximizing funds is the goal of capitalism, it can be applied to thoroughly understand the cycle of poverty. We can understand that employers in capitalist economies are driven to pay their employees as little as possible, to maximize the funds of the company on a whole. The epitome of overworked and underpaid is demonstrated by the many individuals who work full time, yet still live on or below the poverty line. Working long, hard hours doesn’t necessarily equate to sufficient funds for a comfortable, average life, pushing millions of people into both relative and absolute poverty daily.
In that capitalism's biggest goal is maximizing funds as previously stated, the wellness of its citizens take a back seat to this motive. In other words, the less privileged do not, and will not receive much help from the government, as capitalism runs under a laissez-faire style of government. This helps the cycle of poverty, whether relative or absolute, remain in that citizens are often unable to break the cycle.
The exploitative nature and inherent inequalities of capitalism means that health and access to health-care become an issue. The World Health Organization (2017) defines health as a “state of complete physical, mental and social well-being and not merely the absence of disease or infirmity.” Therefore, health involves not only the absence of disease, but a positive sense of wellness. In the trifecta of poverty, malnutrition and inequality, capitalism can be perceived as a component of inequality, resulting in poverty for the have-nots, leading to malnutrition in that they are unable to afford or access food with nutritious value.
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