Alternative to Karl MarxMarx was right about 1 thing, capitalism doesnt work, as capitalist force down labour costs and get richer the labour cannot afford the goods and the capitalists go out of...

Alternative to Karl Marx

Marx was right about 1 thing, capitalism doesnt work, as capitalist force down labour costs and get richer the labour cannot afford the goods and the capitalists go out of business. If wages increase then profits decline until the capitalists go out of business. Either way, survival of the fittest makes weaker capitalists fall. In the west salaries have stayed flat for the last 25 years and their relative wealth hasnt got better, leaving a fraction of capitalists getting richer

But, if by law companies were forced to offer its employees a stake in their company, say up to 20% of salary to reinvest back into their company, the weaker companies would still fall because their employees won't invest. But the stronger ones will be invested, creating employee loyalty, and their profits will increase, making the capitalists and the employees richer. You could say this is pensions, but instead the employees are investing directly into the companies they work for. To encourage employees it must be tax free and be more preferential than normal pensions. Employers will be happier to pay higher salaries because more of the money is going to be reinvested back into them. So higher salaries means that more goods can be bought making the capitalists richer which is what they want

The companies that the employees dont invest in will close allowing these employees to move to companies that pay more and so not only will the capitalists get richer, but for once we all will

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rrteacher's profile pic

rrteacher | College Teacher | (Level 2) Educator Emeritus

Posted on

Like Post 3, I question some of the assumptions of the original post. Since it seems to be talking almost exclusively about manufacturers of consumer goods, I'd say outsourcing is a more relevant issue than a Marxian process of alienation from the value of labor. 

pohnpei397's profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted on

First of all, I wonder what your evidence is that there will be this process of wages being forced down to the point where people cannot buy the things that the companies make.  Do you think that this has already happened?  If so, how do you account for the fact that so many Americans (even far outside the elite) have so many material goods?  If you do not think this has happened yet, how far in the future do you predict it will happen?

 

litteacher8's profile pic

litteacher8 | High School Teacher | (Level 3) Distinguished Educator

Posted on

This is an interesting idea.  Of course, we don't want to take too much control away from the companies.  That has historically been difficult as well.  There has to be a common ground, and a balance between control and encouragement of social responsibility in the corporate world.

stevenfouracre's profile pic

stevenfouracre | eNotes Newbie

Posted on

First of all, I wonder what your evidence is that there will be this process of wages being forced down to the point where people cannot buy the things that the companies make.  Do you think that this has already happened?  If so, how do you account for the fact that so many Americans (even far outside the elite) have so many material goods?  If you do not think this has happened yet, how far in the future do you predict it will happen?

 

I will however say that the only way this can work in a global economy is for global politics of all the major powers. Britain cannot lead by example on this, otherwise it will be suicidal, all companies will literally leave the UK.

 

stevenfouracre's profile pic

stevenfouracre | eNotes Newbie

Posted on

First of all, I wonder what your evidence is that there will be this process of wages being forced down to the point where people cannot buy the things that the companies make.  Do you think that this has already happened?  If so, how do you account for the fact that so many Americans (even far outside the elite) have so many material goods?  If you do not think this has happened yet, how far in the future do you predict it will happen?

 

In the UK in the 1970's wages reduced and there were strikes, which led to companies closing, then the conservatives changed the laws on trade unions and removed red tape which led to a boom. Wages remained low for most workers so credit became wide spread to allow the workers to buy whatever they want but of course this has now led to the bust because the debt could not be repaid.

Globalisations allowed workers in the far east to be exploited on ever lower wages because those in the west demanded higher wages so the capitalists were able to exploit and continue making higher profits, but what happens when those in the east start demanding higher wages, where will the capitalists look to then?

 

stevenfouracre's profile pic

stevenfouracre | eNotes Newbie

Posted on

Like Post 3, I question some of the assumptions of the original post. Since it seems to be talking almost exclusively about manufacturers of consumer goods, I'd say outsourcing is a more relevant issue than a Marxian process of alienation from the value of labor. 

No I wasnt just talking about manufactured goods

 

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