Economic Theory of Capitalism Essay Example | Topics and Well Written Essays - 750 words - 1

Economic Theory of Capitalism - Essay ExampleIt can be said that capitalism has had a huge impact on the sovereignty of the states, which have hap to depend on it completely. It has, in fact, been said that it undermines state sovereignty because decisions that governments have to generate have to put into consideration their impact on international affairs (Anderson 85). An example of this is oil-exporting countries, which heavily depend on the income from this product to fund their national budgets. Moreover, if these countries were to act in a way that displeases the international community, because they would be forced to abandon such decisions through the placing of sanctions on their exports by those countries, which import their oil (Hobson 64). Moreover, because of capitalism, many countries have economic interests in other countries. To comfort these interests, it has locomote necessary for the power to meddle in the political affairs of the weaker ones. This has not o nly made the latter countries lose their sovereignty, but it has also support their overdependence on more developed nations for economic aid. In many countries, it has been found that economic power is disproportionately balanced so that a few handgrip most of the wealth while the rest only hold very little or none at all (Lenin 18). This has created a situation where individuals give birth the majority of the resources in the society and this has made the gap between the rich and the poor to widen. The rich become richer while the poor have continued to become poorer as the cost of living increases while their income has remained the same. The economic policies of many countries tend to be left in the hands of politicians, who make decisions about things or places they argon unacquainted with, lack of adequate information about the framework to design printingive and correct policies and programs to facilitate the development of their people. This has led many nations to pursu e policies that ar detrimental to the equal development of all their citizens, as they have tended to secure the status quo namely, the rich being favored at the expense of the poor, who make up the majority of many societies the world over (Schumpeter 105). The potential for social chaos because of this, as propagated by Marx, is quite possible especially when one considers that the trickle effect policies propagated by capitalists do not seem to work. It is a fact that economic inequality is a reality among the majority of the worlds population and this has come about mainly because of the fact that capitalist policies have become dominant. Despite this situation being rampant the world over, most of the people with the power to make a difference are either unwilling or unable to do so because they do not want to disturb the status quo as it is.