BUSINESS ETHICS essay part 2
3) What are the Virtues of a Capitalist Free Market System? What is the Marxist criticism of such a system as exemplified by the Capitalist system? Does it follow then that if Marxism is correct that Capitalism is inherently flawed? How does Capitalism provide a Moral defense of its system?
The Virtues of a Capitalist Free Market System include the set of morally justified principles which aim at the justification of the capitalist system and making this system grounded on moral principles (De George 115). In this regard, one of the main virtues of a capitalist free market system is the free and fair competition which implies that all individuals have equal opportunities but some of them just fail to exercise their opportunities, whereas others use the full potential of their opportunities that bring them success and wealth. Furthermore, the Virtues of a Capitalist Free Market System imply that the market develops freely without any regulations (De George 118). Therefore, there are no external powers or factors that may influence the position of individuals or actions of moral agents. In other words, the capitalist system implies the free development of individuals which are not bound by any regulations imposed on them by the government, for instance. As a result, individuals being absolutely free cannot complain on the system because this system turns out to be regulated by natural market laws but not written laws imposed on individuals by the government or other authorities. In this regard, Marxism criticizes the major flaw of capitalism which is the class antagonism and the oppression of the class of oppressed by the class of oppressors, whereas oppressors accumulate their wealth at costs of the class of oppressed by means of the full control over means of production, whereas oppressed have nothing but their labor which is their only source of income (De George 122). In such a way, Marxism reveals the intrinsic inequality between people in the capitalist system and the gap between social classes cannot be bridged, unless the social revolution occurs and leads to redistribution of power and change of the classes of oppressors and oppressed or the creation of the classless society. In response to such criticism, the capitalism provides the moral defense grounded on the initial equality of all people and persisting equal opportunities for all people because formally every individual has a chance to become rich and prosperous, if he/she has a good business idea, for instance. In such a way, the capitalism attempts to justify the possible inequality of individuals in their socioeconomic standing by the lack of abilities, while formally all of them have equal opportunities to exercise their abilities and available resources to reach success. However, this argument is not always effective and persuading, when confronted by Marxist ideas which reveal the essence of inequality based on the difference in the access to the means of production (De George 124). To put it more precisely, Marxists stand on the ground that people cannot exercise equal opportunities because they do not have equal access to the means of production. For instance, if a person invents a technological innovation allowing him/her to manufacture a new product, he/she holds the full control over the means of production because he owns the production line he/she has created his/her write to own it is protected by law in the capitalist system. As a result, the public cannot exercise benefits from this invention starting its mass production because the owner of the innovation is the only proprietor of the means of production and new technology. The inventor does not make his/her innovation available to the public production. Instead, he/she retains the full control over the production and means of production. In such a situation, employees have to work for the owner of the means of production to manufacture the innovative product and they cannot start the production of the similar product or the same product because they do not own the means of production. The only thing they own is their labor. Thus, Marxists reject the moral defense of Capitalism and insist that Capitalism is the unfair and unjust social system, where the inequality of the class of oppressors and the class of oppressed cannot be eliminated otherwise but by means of the social revolution.
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