Capitalism: Moores Perspectives - Research Paper Example

Topic: Capitalism: Moore’s Perspectives Name Course Institution Date Table of Contents Research questions…………………………………………………………….. 1.0 Introduction………………………………………………………………….5 2.0 Background information…………………………………………………….6 3.0 Is capitalism an evil that we need to eliminate?........................................7 3.1 Defining capitalism ………………………………………………….7 3.2 Evils associated with capitalism …………………………………….9 4.0 What does it mean to replace capitalism with democracy?.........................9 4.1 Defining democracy …………………………………………………9 4.2 The connection between democracy and capitalism ………………..9 4.3 Replacing capitalism with democracy………………………………10 5.0 What is the future of capitalism?............................................................12 5.1 The future of capitalism…………………………………………….12 6.0 Conclusion …………………………………………………………………14 7.0 Reflections …………………………………………………………………14 8.0 Bibliography..………………………………………………………………16 Research questions With the social, economic and political effects posed by the recent financial crisis and economic depression, numerous questions have emerged on the future implications of capitalism. Consequently, scholars continue to develop divergent theoretical constructs for exploring the effects of capitalism in modern societies. With globalization and increased mobility of capital, there is growing evidence that future efforts to forecast, prevent and manage global financial and economic crisis will depend on the efficacy of international mechanisms and global structures. However, knowledge on the global economic and political connectivity will determine the success of global policy planning and participation. This paper critically examines capitalism and its consequences as depicted in the film Capitalism: a love story. In doing this, the paper answers the following questions; 1. Is capitalism an evil that we need to eliminate? The paper questions the implications of capitalism and whether it should be eliminated. In doing this, the paper critically examines existing literature on consequences of capitalism and builds on views expressed on the movie Capitalism: a love story. The project explores capitalism by answering the following questions: 2. What does it mean to replace capitalism with democracy? This question examines the relationship between capitalism and democracy, and whether replacing the former with the later could deliver value in the future. The position is based on Moore’s views portrayed in the movie Capitalism: a love story. 3. What is the future of capitalism? With increased globalization and resultant political and economic interdependence, there are questions on the future of capitalism. This question examines the role of present financial and economic mechanisms, global governance mechanisms and the implications of knowledge based economy in an increasingly capitalistic global economy. This question utilizes evidences drawn from existing academic literature and analytical projections based on economic and political facts. 1.0 Introduction With globalization and increased competition in the business environment, there are heated public debates and heightened scholarly focus on the implications of capitalism in modern societies. For instance, the growing popularity of shared capitalism continues to elicit debates and divergent opinions on whether modern societies and workers benefit from bigger financial stakes associated with capitalism. As such, there are questions on whether capitalism is good for the UK economy and its implications to the society in general. Consequently, various platforms have been used to highlight limitations associated with capitalism and the best ways to enhance value to humanity. In academics, scholars continue to question the future of capitalism in the wake of increased globalization, internationalization of organizations and need for profit maximization. The film Capitalism: a love story depicts the negative consequences of capitalism to workers and the society in general. The collapse of communism and the declining popularity of the socialist movement coincided with the rise in capitalism pushed by western countries. However, lessons from the 2008/2009 financial and economic crisis indicated the need for an effective global economic and political order. In the post ideological era, there is need for international mechanisms and structures for addressing emerging economic, financial and political challenges. This paper critically examines if capitalism is an evil that should be eliminated and if democracy is an effective alternative. The paper keenly examines views expressed in the American film Capitalism: a love story by Moore and extrapolates the portrayed consequences to the UK context. In doing this, the paper holds the position that rapacious capitalism has negative social, political and economic consequences hence the need to establish concerted efforts from governments and corporate institutions. This position reflects scholarly evidence that international mechanisms and global structures are more potent in preventing and managing financial crisis as compared to unilateral measures witnessed in the past. 2.0 Background Capitalism: A love story is a film that explores the impact of capitalism and corporate dominance in particular. The film critically examines corporate dominance from middle income segments in America to the haves in Washington. Capitalism, a love story captures the power and fluidity of the global financial foci by using outrage and humor. While the film focuses on the American society in general, the consequences of capitalism outlined could be projected in the European context especially the UK. Generally, capitalism refers to an economic system where factors and means of production are largely privately owned and emphasizes on commercial private profit. Capitalistic economies emphasize on private ownership and profitability regarding the supply, distribution, pricing and demand for investment.1 However, a critical search reveals that there is no universal definition of the term capitalism. While some scholars and analysts agree that capitalism involves elements of private ownership of production factors and investment, a historical view shows varying application of this term. In some literature, capitalism has been applied to describe economic systems where all the production factors are privately owned and operated.3. As such, it is imperative that the term capitalism is used differently depending on the geographical, political, political and scholarly approach used.2 1 M. Adam, ‘The Age of Absolutism, Review of International Studies, Vol. 31(2008): 494-512. 2 J. Bagwati, In Defense of Globalization. Oxford University Press. In other literatures, capitalism describes a mixed economy system focusing on profitability regardless of the type of ownership of the production means. For instance, economists emphasize on degree of government’s involvement and control over markets. This approach is often referred to as laissez faire and focuses on the right to own property. Political economists on the other hand, refer to power relations, ownership of private property and wage labor as the main elements of capitalism. From an economic standpoint, there is growing consensus that capitalism facilitates economic growth and development. However, it is also notable that capitalism elicits numerous objections with critics questioning the social, political and economic impact of capitalism. In addition, there are questions over the extend to which capitalism could foster economic growth and development given that different markets exhibit varying levels of capitalism in terms of private ownership of private property and ability to generate profits from investments. Conclusively, the level of capitalism in a society is determined by political and policy factors. Capitalism developed in the 16th century from European societies. After the end of feudism, capitalism and merchant capitalism in particular dominated the western world spreading across Europe during the industrialization era.3 Generally, there are various types of capitalism including Anarcho-capitalism, mercantilism, social market economy and state capitalism. Moreover, there is free-market capitalism, mixed economy capitalism and corporate capitalism. The universal agreement is that in a capitalistic economy, supply and demand forces determine the prices of goods and services. In addition, the role of government in a capitalistic economy is mainly to protect consumers and regulate competition with the aim of facilitating private ownership of property. 3 P. Michael, ‘The invention of capitalism, Duke University Press, 2008, p.34. 3.0 Is capitalism an evil that we need to eliminate? 3.1 defining capitalism Although capitalism has been credited for facilitating economic growth and development, critics argue that the future presents economic and political challenges. There have been heated public debates and scholarly attention on the implications of capitalism in the UK society. Various platforms have been used in airing views and opinions on the effects of capitalism and provide insights on the public perceptions on capitalism and if capitalism is an evil that should be eliminated. The film ‘Capitalism; a love story’s one of the platforms that describes capitalism and its impact on economic growth and development. The film focuses on the recent global economic crisis of 2008/2009 and the effects of the economic recovery strategies applied. Although this film captures the economic position in the United States, it also fits in the European economic system in general and the UK context in particular. The documentary film depicts aspects of the American capitalism after the Second World War. Ostensibly, the film captures the American culture of consumption and self-indulgence as traced to a speech by Jimmy Carter, an American president at the time. In the beginning, the film depicts series of security lapses, robberies and other economic crimes associated with capitalism. The authors make a poetic comparison of modern American economic system with the economic order in the ancient Roman Empire. Capitalism: a love story is a culmination of Moore’s criticism of capitalism and its impact to the social, economic and political fronts. Coming in the wake of deep global financial crisis, Moore observes a critical view of the growing government control of not only corporate interests but also Wall Street operations amid a memorable financial and economic collapse. The film maker uses the phrase ‘dead peasants’ to describe the impact of capitalism to the American society and workers in particular. Moore portrays dying workers in large corporations, collapse in corporate insurance schemes and rampant unemployment rates. This is portrayed through collapse of corporations due to bankruptcy, loss of homes of jobs and the wide income disparities among employees. Although the movie has made an impact by bringing to the fore critical aspects of capitalistic economy, it is imperative that single film may not make a huge difference and create in-depth perceptions or build appreciable public opinion. However, in an interview, the author argued that his objective in the film is to actively engage his audience on democratic principles with particular focus on capitalism. 3.2 Evils associated with capitalism Moore argues that capitalism is an unnecessary evil that must be eliminated. In retrospect, the film shows undesired effects of capitalism. In this regard, the author shows that while capitalism is evil, there is no need for government intervention to regulate evil. Instead, Moore pronounces the need to eliminate capitalism and replace it with democracy. This argument is supported by citing the failure of the US healthcare system. 4.0 What does it mean to replace capitalism with democracy? 4.1 Defining democracy A critical analysis of the film, Capitalism: a love story reveals that Moor argues for an economic order that involves replacing capitalism with democracy. This is based on the understanding that while the old Soviet Union used communism as a political system and socialism as an economic system, capitalism has been used both as an economic and a political system. This position is consistent with arguments that capitalistic money flows to the political front and lowers democratic accountability. 4.2 The connection between democracy and capitalism There are questions on the relationships between capitalism and democracy, the coexistence between political and economic ideologies. In recent years, there are questions on how democracy and capitalism can be combined to produce desired political economy. 4 These arguments are based on the recognition that capitalism creates inequalities in terms of income distribution, while democracy facilitates egalitarianism. However, analysts argue that the aggregation of economic interests depends on public policies in terms of distributive politics. In addition, understanding how capitalism can be replaced with democracy requires critical understanding of how democratic pressures influence economic agents within an economy. The film shows that a higher voter turnout of the poor populace coupled by increased franchising has the potential of facilitating redistribution of wealth and resources. This is attributed to increased democratization and implementation of egalitarian policies. However, it is also important to explore the role of political power as it is in democracy of institutions including the political strength of labor in organizations. Analysts argue that there is no direct observable relationship between national income, government expenditure and general economic performance among advanced democracies such as the U.S. and European states. As such, there is considerable consensus that governments are not under any influence from political pressures to regulate labor markets in particular manner or adopt particular strategies or economic policies.6 Of particular significance is revelation that self seeking politicians would form collaborations with corporations and Wall Street contributing in increased unemployment, poor insurance coverage and increased risk for lose of incomes and homes. 4.3 The connection between democracy and capitalism With globalization and increased internationalization of corporations, it is interesting to see how capitalism will affect international trade and geopolitics. The 21st century has witnessed increased mobility of capital and people, culminating to increased trade and investment activities across the globe. Consequently, researchers and analysts continue to disagree on whether capitalism has evolved to become the new world order. Critics argue that internationalization of finance and commerce has gone beyond state control.4 This has also led to decrease in state sovereignty as corporations are at free will to relocate their business operations to locations of greater economic and or political significance. Analysts reveal that the growing mobility and flow of capital has therefore eclipsed state sovereignty and will continue driven by globalization forces. While economists agree that capitalism has played a pivotal role in enhancing economic growth, improving life expectancy, education and nutrition, the state intervention in capital markets signaled a form of crisis for global capitalism. In the UK, the government provided finance to banks with the aim of easing the liquidity crisis and avoiding use of ‘toxic’ debts in the corporate world. However, analysts agree that with the weakening of communism in the 1990’s and subsequent fall of the soviet union, capitalism has become a globally dominant economic system. 4 R. Stephen, ‘Historical materialism: Social structure and social change in the Middle Ages’. Journal of Medieval and Early Modern Studies, Vol. 34, 3(2004):472-521. The United States has taken leadership in pushing for the adoption of capitalism across the globe. Despite these trends, it is also notable that capitalism continues to face rivalry from new economic systems such as the socialist movement taking route in Latin America and Bolivarianism spreading across traditionally communist societies such as Venezuela and Cuba. In addition, the recent financial crisis of 2008/2009 has led researchers and analysts to take a different view and reevaluation of capitalism. These trends have led to increased popularity of traditional economic systems such as mixed economic systems and socialist economics. However, the future of capitalism is still strong although the growth of information society and globalization may change the power of capitalism in determining economic growth and value to humanity. 5.0 What is the future of capitalism? 5.1 The future of capitalism The future of capitalism elicits divergent opinions with some analysts and scholars casting doubts over the limitations associated with present financial and economic mechanisms, global governance mechanisms and the complications of knowledge based economy. This is especially important considering that increased globalization complicates state sovereignty, control and political independence. Maintain that with the recent financial crisis and economic recession, there is no doubt that economic recovery depends more on collective responsibility not only from governments but also from corporations and other non-state actors.5 5 F. Ackerman & H. Lisa, Priceless: On Knowing the Price of Everything and the Value of Nothing, New Press, London, 2008, p. 91.    Increased economic and financial inter-competiveness means that global policies and concerted efforts from governments and corporations will play an important role in determining economic growth and sustainable development. This requires reliable and accurate academic knowledge particularly on the forensic nature of economic and financial aspects of the global economy. For instance, analysts argue that developed and developing countries are ore interconnected economically. This therefore requires rich knowledge and understating on global economic interdependence and global governance issues.6 Similarly, from an economic and political standpoint, there is need to establish stable international order devoid of international legitimacy as witnessed in the 2008/2009 global financial crisis. While stimulus packages adopted by governments have been credited for facilitating quick recovery from the financial crisis, there is need for long-term and sustainable measures. This could be achieved through development of economic models that reflect changing elements of capitalism. This argument is supported by the view that present international mechanisms and institutional framework were not able to predict and or prevent the recent economic recession casting doubts over the current world economic order. However, the future of capitalism also depends on trends in the political front. This position is in consistency with the argument that financial and economic crisis are strongly influenced and associated with political leaderships. For instance, good leadership should be able to not only overcome crisis but also enhance forecasting and prevention of such events. At the global level, there is need to address structural challenges through an effective international mechanism and feasible public policy. 6 Mike, Capitalism: A love story. Given that different cultures promote different values, it is important to consider social dynamics in view of rapid globalization and internationalization of corporations. Analysts and scholars argue on the need to build humane societies based on collective values, expand democratic space and encourage participative geopolitics.7 This is especially important considering the drawbacks associated with capitalism in terms of threats to democratic principles. These threats are well demonstrated in the film Capitalism: a love story. As such, it is important to determine the alternatives to capitalism or different kind of capitalism to address emerging challenges such as the recent economic crisis. The film Capitalism: a love story suggests replacing capitalism with democracy as a strategy for fostering participative political and economic mechanisms. 7 C. Smith, International Trade and Globalization. Stocksfield: Anforme, 2007, p.38.  6.0 Conclusion A critical examination of the global economic and political system reveals that capitalism has led to increased economic growth and development. However, with globalization and increased interdependence among states, there is need for international mechanisms and global structures to address emerging challenges. For instance, the ability to prevent and manage global financial and economic crisis depends on the efficacy of international intervention measures as opposed to unilateral efforts. As such, it is imperative that concerted efforts between governments, corporations and other actors is required to address social, economic and political challenges posed by capitalism. 7.0 Reflections The English Project provided an opportunity to enhance the value of writing practice, enhanced research skills and contributed in fostering the application of original thoughts, critical thinking and use of scholarly evidence in learning. In the project, I learned that capitalism has economic, political and social ramifications. The effects of capitalism have global consequences given the growing political and economic interdependencies. By examining these interdependencies and communicating future implications, the project facilitated language improvement. The most difficult part in the project was examining the relationship between economic and political fronts and the implications of capitalism in the future. However, in general I enjoyed and appreciated scholarly evidences on the negative consequences of capitalism and their consistency with views portrayed in the film Capitalism: a love story. 8.0 Bibliography Ackerman F. & Lisa, H. Priceless: On Knowing the Price of Everything and the Value of Nothing, New Press, London, 2008, p. 91.    Adam, M. ‘The Age of Absolutism: Capitalism, the modern states-system and international relations’. Review of International Studies, Vol. 31(2008): 494-512. Bagwati, J. In Defense of Globalization. Oxford: Oxford University Press. Michael, P. ‘The invention of capitalism; Classical political economy and the secret history of primitive accumulation’ Duke University Press, 2008,p.34. Mike, M. Capitalism: A love story. [CD-ROM], 2009 Smith, C. International Trade and Globalization. Stocksfield: Anforme,2007, p.38.  Stephen, R. ‘Historical materialism: Social structure and social change in the middle ages’. Journal of Medieval and Early Modern Studies, Vol. 34, 3(2004):472-521. Read More