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> It reduces inequality between people, such as an American auto worker and a Chinese auto worker. Between some people yes. But here's the big problem; we know
by asgard1024 11y ago
> It reduces inequality between people, such as an American auto worker and a Chinese auto worker.
Between some people yes. But here's the big problem; we know the causal force for this "inequality reduction", and it's not that someone wanted to make Chinese or Mexican workers richer (or that they would get better at demanding better pay). The causal force was that capitalists in the U.S. and small group of people outside the U.S. (usually people in power in developing countries, like members of the Chinese communist party) wanted to get richer at expense of everybody else.
Based on this known causal force, there is no reason to think that capitalism itself causes more equality. (And in fact, globalization has been shown to counteract ability of countries to compete, see for example book Kicking Away the Ladder from Ha-Joon Chang, who is korean. Countries that depend on internal demand and supply rather than foreign investment and exports tend to fare much better in closing the economic gap with respect to developed world.)
- Tycho 11y agoThe whole explicit point of capitalism is to rely on the selfish actions of others to generate greater wealth for all. Or put another way, to never rely on selfless action.
- danbruc 11y agoI think not many really doubt that capitalism is really effective at creating wealth. You probably also get most people to agree that capitalism increases wealth for many if not most people and not only a selected few. But, and this I think is the real issue, capitalism favors capitalists. Everyone becomes wealthier but capitalists take a disproportionate large share.