Introduction
It is a sub-field of sociology, which discusses 1) emergence/nature of globalization, 2) its institutions and its impact on social-economic-political systems. It also covers a range of topics, which include global economy, gender, cultural expansion, political globalization, and the globalization of the capitalist system.
This sub-field facilitates students in developing an understanding regarding the subjects mentioned above, which are not only extremely relevant but also, they are complex and interlinked. For instance, the global economy is a subject that is associated with capitalism, as modern economic systems are based on the notions and principles of neo-classical economics. Therefore, it is essential to study these subjects/phenomena in detail and understand how these subjects/phenomena affect other subjects/phenomena.
During the course, we have learned that Capitalism is affecting social-economic-political systems of the world and the global economy. In fact, Capitalism has played a vital role in globalization. For instance, free trade, which is a major component of liberal economies, is based on the capitalist notions and principles (Ricardian Principles about comparative advantage). Even at the Smith’s time (emerging state of capitalism) economic activity was based on trade among merchants (Katch, 2015, p. 30).
Free-trade pushed countries to liberalize their political-economic systems, which affected demographics and politics. One such example is of the European Union, which aimed to meet the economic objectives through tariff-free trade. However, the formation of European Union affected not only economic systems of member countries, but also it directly affected political systems and demographics. Therefore, we can say that globalization is a consequence of Capitalism, which has produced mixed results, about the world economy and national/global politics, over the years.
Capitalism
It is a political-social-economic system based on the principles of freedom (laissez-faire). Capitalism proposes a democratic political system that tries to translate the will of the majority in policies, laws, and regulations (theoretically). It facilitates individuals and groups within a country in realizing their potential. However, it also considered destructive and in human (Katch, 2015, p. 12), which only cares about any of that basic human necessity stuff to the extent that money can be made off it (Katch, 2015, p. 11).
Advantages
It is usually an incredibly open and transparent political-economic system, which can be amended with great ease. For instance, after the Great Depression, a host of economic reforms was introduced, which affected society and political system. It improved the lives of ordinary people and gave them more economic-social freedom and security. It also gave birth to new political notions and perceptions, which brought various kinds of political changes within these systems and globally.
Another remarkable feature, of Capitalism, is its ability to produce results at a quick time and biblical scale. For instance, after the Industrial Revolution, markets expanded, size and volume of production changed.
Disadvantages
However, several studies have also concluded that in most of the capitalist political-economic systems, democracies are not robust, and the system is slightly rigged in favor of a small, but a powerful class and it exploits working class to accumulate wealth. In fact, capitalist system treat air, water, plants, minerals, and other animals as objects to be exploited even more ruthlessly than workers (Katch, 2015, p. 10).
For instance, in the United States, Corporate America influences congressional and presidential elections, all because Capitalism puts so much power and wealth in a few hands (Katch, 2015, p. 53). Also, the capitalist political-economic model is infamous for producing quasi-democracies and faulty economic systems (there is enormous evidence in favor of it). Furthermore, in capitalism system, everything is exploited and eventually translates into a commodity. Even voluntarily working for someone else under capitalism is to be exploited (Katch, 2015, p. 38). However, as there seems no alternative of the capitalist political-economic model; therefore, it is a prevalent political-economic system that caused globalization. Capitalism is a bad idea, but it is the only system it works (Katch, 2015, p. 11).
Socialism
It is a system, which is based on the Marxian principle that allows private property to some extent. The true attribute of Socialist political-economic system is the larger size of government that ensures that each citizen has equal opportunity. Also, a socialist political-economic system not only produces economic opportunities for all, but also it provides health care system and other such services on the state’s behalf. It focuses on the needs of people; a system or a society whose top priority is meeting all of its people’s needs—ranging from food, shelter, and health care to art, culture, and companionship (Katch, 2015, p. 11).
Advantages
As the priority of this system is people, and it exploits resources to address their needs; therefore, prosperity is real and apparent in such systems. People live stress-free lives, as large size governments address their needs. In such systems, the literacy rate is high, and generally, there are no classes. However, Marxian principles do not stress on classless society, but rather on progressive society (Katch, 2015, p. 94).
The fact is that socialist ideas and precepts have developed in recent decades. The functioning of the capitalist system has provided enormous information regarding an ideal political-economic system, which must not be exploitative.
For instance, a political-economic system must be self-progressing that provides opportunities to all. Also, it must not be responsible for inequality of wealth in a particular system, but rather, it must address these issues. Most of the studies have concluded that an economic system becomes repressive when it starts to create wealth inequality. Therefore, an ideal political-economic system would be such system that inherently distributes financial resources fairly among different segments of society.
It is believed that neo-socialism, which is based on these principles, effectively address main concerns and it is more productive (theoretically) than capitalism.
Disadvantages
Evidence suggests that socialist political-economic systems are also inherently flawed, as they undermine incentive. Also, because of the large size of government, socialist political-economic systems are controlled by bureaucrats, which create various kinds of political, economic, and social complications. Furthermore, political systems become stagnant, and societies do not progress because of the lack of freedom. In the book it is suggested that the true socialist system never came into existence. The fact is that neither the “communist” dictators of Russia and China nor the mild “socialist” reformers in Sweden and France succeeded in creating the liberated democratic societies that Marx and Engels described in the Manifesto however, whatever variants of it had appeared, they were extremely disappointing (Katch, 2015, p. 16).
Persistent Issues About Capitalism
Despite producing desired results, such as robust democracies of Western and Eastern Hemisphere, it is various responsible complications. For instance, capitalism is considered a major cause of accumulation of global wealth, which is affecting economies adversely. Capitalism has produced such class, which extremely small in size, but controls most of the world resources. This complication is affecting society and promoting extreme political views. It is also facilitating the revival and growth of leftist political views (Priest & Mullen, 2018).
Also, we have learned that because of the inherent flaws of capitalism, some economies of the world are more robust and produce lucrative opportunities more frequently than the rest, which is a cause of mass migration to the development or post-industrial capitalist economies? For instance, the pattern of large-scale migration, from those member countries of the European Union that has the weak economy of those member countries that has a robust/healthy economy, is quite apparent. However, this migration to the developed world, by the dreamers, is strongly being resisted and sabotaged by right-wing political forces/parties/governments (Crean, 2018).
For instance, Donald Trump, who represented right-wing political sentiments, several criticized immigration policies (including DACA). In fact, the political narrative, of Donald Trump, revolved around immigration policy. The president asserted that not only illegal immigrants were affecting law and order situation, but also they were affecting economic realities. It is a deliberate attempt to shift focus from the contradictions and dichotomies of the capitalist system, which frequently produce an economic crisis. Therefore, we can say that not only capitalist system causes inequalities and economic crisis, but also the beneficiaries of the system manage to shift focus towards leas relevant issues and present them as the cause of failures of the capitalist system.
During the course, we also learned that because of the innate contradictions of the capitalist system, recessions, and depressions frequently. As the capitalist system has gradually globalized after the collapse of the Soviet Union; therefore, because of the inherent dichotomies of the capitalist system, world economies face various kinds of challenges recurs. For instance, the 2007 global economic recession was caused when the housing industry bubble, of US economy, burst. It demonstrates that an economic event in a particular economy affects the entire global economy, larger the size of the economy, the greater the impact on the world economy. The impact on world economy affects demographics and society directly.
These aspects of the globalized economy, which is based on capitalist notions and principles, make Socialism a relevant subject. It also makes socialism a relevant instrument for the resolution of these problems. However, to find relevant and suitable remedies, it is essential to identify and comprehend recent developments in the capitalist realm and changes within the idea of socialism (Grant, 2018).
Recent Developments in Capitalist Realm
The fact is that more people, in capitalist political economies, are supporting socialist notions and causes. For instance, in the United States, Social Democrat Bernie Sanders was able to gather massive support for his socialist agenda. Recently, four progressive Democrat representatives won primary elections, on the agenda of free Medicare (for all), minimum wage, ending mass incarceration, and affordable housing (Grant, 2018). However, it is also a fact that left in the capitalist world; especially in the United States is divided and confused. Also, the left does not have an established political platform, which makes it dependent on left-leaning parties to provide platforms (Democrat Party). However, in Europe and Asia, left have very established political platforms, and it is organized to the extent that it can form governments (Jentzen, 2018).
It is very apparent that because of the economic challenges, capitalism is on the decline and socialist notions and ideas are resuscitating. It is causing various kinds of changes in the political-economic realm, which will have a profound impact on the global economic system (Resistenze Internazionali, 2018).
In recent times, the major incident, which has increased skepticism regarding capitalism, was 2007 financial crisis. Both mainstream and unconventional economists agree that the inherent contradictions of capitalism system have deepened, which allow large corporations/private sectors to exploit the system more conveniently.
The greed of Corporate America has rigged the entire system, and it uses political dichotomies as an instrument to meet various kinds of objectives. These developments have generated a strong reaction, which is influencing political and social objectives. For instance, because of economic injustice, caused by capitalism, a strong political reaction generated that directly targeted prevailing capitalist political-economic system. During the same period, other economic issues, such as minimum wage became part of the national political narrative.
These changes in political precepts, mood and attitude changes also brought changes in the capitalist realm. Therefore, we can say several factors are shaping contemplating or current capitalism realm. The primary factors are economic, which give birth to various kinds of realities that amalgamated to form a larger reality, which we may understand as a capitalist realm.
Neo-Socialism
It is apparent that Socialism is revving and in this revival decline of capitalism has played a major role. Large corporations have grown so large that they are undermining states and governments, which is affecting ordinary people. For instance, the general public is more in favor to tame large corporations, and they have the will to resist such corporate designs that are dismissive about the interests of the local population (Hopwood, 2018). These new developments have made socialism relevant once again. However, neo-socialist precepts and perspectives are considered more effective and result oriented than classical, which is why the neo-socialism is considered one of the solutions.
The development, of socialist precepts and notions, is evidence in itself that socialism has not become a concept/notion/ideology (political) of the past. A large section of society still fascinates with socialist narrative and has a fair amount of confidence in it. For instance, during the 2016 primaries, Social-Democratic, Bernie Sanders, presented a socialist manifesto and solutions from Democrats party. The manifesto and solutions were well received, which suggest that in capitalist countries there is considerable space for socialist views to prosper, which would be well received.
Some studies infer that not only the adverse economic conditions are responsible for resurrecting socialism, but also the growing cultural diversity. In recent years, many people have migrated, to the United States, from Latin America and Asia. These people not only brought their skills to the United States, but also their political perspectives. For these migrants, socialism was not an alien and evil idea.
When these perceptions interacted with existing perceptions and notions, about capitalism and socialism, it gave birth to new precepts, which were more favorable towards socialism and more skeptic of capitalism.
The Remedy/Conclusion
The answer, to persistent global challenges pertaining world economy-balance of power-seismic demographic changes, lies between socialism and capitalism. It is very evident from the study that capitalism is a robust political-economic system, which is hard to substitute. It can bring about change, at biblical scale, in short span of time. Also, this system is easy to reform, as we learn from the Great Depression. A mixed-political economic system can be very effective, stable and with fewer dichotomies.
There are numerous examples of robust and effective mixed economic systems in Western Europe, which are perpetually improving or evolving. A mixed-economic system would address the unfair distribution of wealth and resources, which would positively affect the economy and society.
Similarly, a mixed political-economic system will also keep in large check corporations, which intend to translate their corporate/financial strength/power into political power. In both developing and developed countries (including post-industrial countries) these large corporations have tilted the political-economic system in their favor, causing various kinds of complications. A strong political-economic system, which will be a consequence of socialist and capitalist notions and principles, will cut these large corporations to their size through taxes, which will eventually benefit ordinary people.
Socialist and Capitalist political-economic systems are inherently flawed, which is why it is essential to devise such systems that have best of both. It will require political will, which is absent at the moment. However, it is also a fact that people belonging to democratic systems do not consider socialism as a radical idea anymore. As the author of the book suggests that people believe socialism is a good political-economic notion or idea, which does not work. However, people may believe in its more practical variant, which may address challenges at the state and global level.
References
Crean, T. (2018, February 26). Dreamers Betrayed – Mass Movement Urgently Needed. Retrieved from https://www.socialistalternative.org/2018/02/26/dreamers-betrayed-mass-movement-urgently-needed/
Grant, J. (2018, May 26). Socialist Candidates Defeat Pa Democratic Establishment In Primaries – Movement In The Streets Needed To Fight For Pro-Worker Policies. Retrieved from https://www.socialistalternative.org/2018/05/26/socialist-candidates-defeat-pa-democratic-establishment-primaries-movement-streets-needed-fight-pro-worker-policies/
Hopwood, B. (2018, April 24). Pipeline War In British Columbia. Retrieved from https://www.socialistalternative.org/2018/04/24/pipeline-war-british-columbia/
Jentzen, G. (2018, May 31). Races Show Potential For Independent Left. Retrieved from https://www.socialistalternative.org/2018/05/31/races-show-potential-independent-left/
Katch, D. (2015 ). Socialism . . . Seriously: A Brief Guide to Human Liberation. Haymarket Books.
Priest, C., & Mullen, K. (2018, May 31). Amazon Tax Passes In Seattle And The Billionaire Class Fights Back. Retrieved from https://www.socialistalternative.org/2018/05/31/amazon-tax-passes-seattle-billionaire-class-fights/
Resistenze Internazionali. (2018, May 30). Italy: A new crisis for European capitalism. Retrieved from http://www.socialistworld.net/index.php/international/europe/53-italy/9823-italy-a-new-crisis-for-european-capitalism
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