Why The Neo Liberal Economic System Must Change And How To Solve It

1600 words - 6 pages

In a capitalistic globalized society that we live in today, there is a large gap between those who have and those who have not. This can pertain to resources, political stability and wealth. The capitalistic or neo-liberalistic system that our society practices allows our society to have a free trade market; where competition is supposed to produce equal opportunity for both the rich and the poor (which is obviously not the case), letting corporations pursue whatever economic advantage they seek to gain without government interference, and the emphasis on individual responsibility rather than the concept of public goods and community. Once these elements are incorporated into the society, the gap continues to widen.
Therefore, the current economic system has failed because there is an unequal distribution of wealth that causes a portion of the global society to become underdeveloped and poor. As a result, these underdeveloped societies struggles and continues to struggle in the depths of poverty, while the societies that are considered “developed,” enjoy the excessive luxuries of wealth that is not necessarily needed. This unequal distribution leaves these underdeveloped societies at the mercy of wealthier societies to exploit their resources and their people, for the sake of profit.
These exploitations include: human trafficking; causing child as well as forced labor in impoverished countries to benefit companies in their production in exchange for cheap labor, harming the environment through the exploitation of natural resources such as crude and natural gasses for the sake of producing material goods, and the formation of monopolies and oligopolies that uses cheap labor abroad and no longer uses domestic labor leaving the national employment population unemployed.
The capitalism now, is definitely different from the capitalism that its’ founding father, Adam Smith, had envisioned. According to Caporaso & Levine on the Theories of Political Economy, “Before the 1870s economics as a system of thought was dominated by the classical agenda: growth, distribution, and the theory of value. After the 1870s, this agenda changed…” (79), not for the better at least. In accordance to Adam Smith, he had always been against large corporations and monopolies running the nation-states on greed and vast wealth. As he says in his work entitled The Wealth of Nations, “To give the monopoly of the home-market to the produce of domestic industry, in any particular art or manufacture, is… in almost all cases, be either a useless or a hurtful regulation” (489).
Adam Smith also mentions the harmful selfishness of the rich and how their actions affect the poor as well as their employees in what he describes as being lead by the “invisible hand.” He says, “All the rich do is to select from the heap of the most precious and agreeable portions…they are guided only by their own convenience, and…labours of their thousands of employees [in] the gratification of their...

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