The Decline of Modern Capitalist Society

The capitalist empire will soon reach its heyday and collapse like all previous empires known to man.  As the world adopts a global economy, the new international market is driven by unregulated, free trade theory. With free trade, the economy opens up to an infinite supply of cheap labor. Companies seek to lower costs and capitalize on the lowest wages. This promotes ruinous wage competition, where workers drive down market wages to unendurable levels. By decreasing costs, businesses can then capture larger portions of revenue as profit. Corporations gain capital (and therefore control) while exploiting the working classes and draining them of financial resources. This grows exponentially as big business acquires more clout and as the proletariat forfeits its wealth. Without any global regulation, the world polarizes.

One of the boasting feats of capitalism is that it promotes growth. The system seeks to accelerate growth and prides itself on expanding its circle of influence. Economists have found that national growth rates are highly correlated with countries’ savings rates. Richer countries have higher savings rates, and these countries consist of the largest middle classes. The highest and lower classes do not save large portions of their incomes; the rich save large amounts, but small percentages of their earnings, while the poor live paycheck to paycheck and cannot afford to save. The middle class on the other hand has the highest savings rate of all.

When the world polarizes, the middle class deteriorates, causing the savings rate to drop. Economic growth decreases. We are then left with a powerful corporate class controlling the world’s economy, and with it, seizing political authority as well. One, small class will control all wealth. This ruling class will inevitable act as totalitarian, feudal kings – Dictators of the World.

What mechanisms are in place to avoid such a downfall of society? The deregulation of boarders and a lack of world government allows for transnational corporations to proceed unchecked. Their power and resources continue to grow at the expense of exploited people and a diminishing middle class. A governmental body needs to monitor and direct the global transition. It must restrict big businesses to avoid the inescapable force of monopolies controlling the world. This system must counter the greed of big business, stymie their concentration of wealth, and limit their expanding stronghold on the world economy and global politics.

The Decline of Modern Capitalist Society