Capitalism

Capitalism

Capitalism is any type of investment to make profit for example, putting a lemonade stand. The ingredients such as lemons, water, sugar, chairs etc. and the lemonade stand itself are the investment. The outcome that’s wanted is to maximize the cost in making the lemonade in sales. As well to produce a good or service creating anything to be sold for a profit for example a cell phone or even a piece a bread are investments. Capitalist’s only goal is to maximize profit at all cost and they will do what it takes to make it happened even if it is legal or illegal. It’s crazy to say that 2% to 3% control the government in our society and 90% of the wealth those few elite control it. This is a system that is driven by profit. The few elite and big corporations in this society have tremendous amount of power and say in the government. For example, the situation that happened when the government paid millions of dollars to bail out those crooked bankers. Even though they broke many laws and yet we as society did not hesitate to help them out. But strangely they could bail themselves out because each of them were billionaires themselves. Then why did the government jeopardize college students Pell grant to “save” those crooked bankers? Simple, because money talks. Industrial capital, finance capital, and commercial capital are three forms of capital and each one of them play an important role capitalism. Industrial capital produce a service as when an individual calls the plubmer to ask for his service to fix the dishwasher.  An example for financial capital is bank loan money to a citizen. The bank does not loan money to someone without strings attached, that would be too easy. The way they do it is by adding interest as a way to charge for using their money. Lastly, an example for commercial capital is Wal-Mart. The way they obtain their merchandise by buying it from a company by wholesale not paying full price for individual items. Doing this, it’s cheaper for them and they price the individual merchandise at a higher price. All three forms as you can see they generate differently but one common goal make maximize their profit

The concentration of wealth is incredibly ridiculous on who actually controls most of the wealth. The domination of corporations with the help of those few “privilege” people have made society a world of greed. As, Dr. Marx stated that as a corporation would get bigger and bigger it would destroy the smaller ones and the concept of monopoly was introduced. The process is for two powerful corporations to integrate together and create a superior corporation to control a great part of society. An example is the merging of Exxon and Mobil, they swopped stock within each other and they became one, Exxon Mobil. Creating this merge between them, on the board of directors both companies would be represented by a common board of directors this is called interlocking directorates. This means the director can sit in both board of director committees. This is strategy to bring assets together and control a bigger market. This merging has an effect on the prices, which means the prices for commodities go up and the profits increase. Having a bigger controlled market and easily eliminate the competition. Fewer corporations control more capital and control the wealth.