International Political Economy - Essay Example

Markets are used in the distribution of resources in the capitalist system but some States that use the capitalist economies distribute their services and goods in nonmarket ways. Gilpin and Gilpin (2001) stated that in the United State of America, for example, some services such as distribution of food via stamps to the needy population and fire, police and park services are done basing on the needs of the citizens and not focused on certain market exchanges. The statement according to Gilpin that states, “Marxism survives as an analytical tool and critique of capitalism and it will continue to survive as long as those flaws of the capitalist system emphasized by Marx and his followers remain” is true considering what is currently happening in the World.

This paper is going to discuss the flaws of the capitalist system described by Marx and his followers such as Harvey and it will additionally discuss the recent economic crisis that proves that Marxism is still alive. Gilpin and Gilpin (2001) stated that the capitalist system leads to the loss of democratic, economic, and political power for majority of the people in the society because capitalism encourages large concentration of property and money in the hands of the few countable individuals of the human population hence leading to an increase in the gap between majority population and the elites.

The wealth and income inequalities makes few individuals in the society to enjoy the ownership of wealth and live healthy lives as others remain poor and struggle to acquire their basic needs by working for the rich. The dominance of large bureaucratic corporations in the capitalist markets that are required by the shareholders to generate more profits make the lives of the citizens miserable because sometime their costs do not favor the social welfare of the people. Gilpin and Gilpin (2001) criticized the corporate capitalism where the large