Why Capitalist Society Fosters Inequality

The core function of a capitalist society is not to level the playing field. Quite the contrary, it reveals inequality by accelerating the accumulation of wealth among a select few while the majority struggles to make ends meet. This phenomenon, driven by the fundamental principles of capitalism, is a reflection of its design and operation.

Economic Growth and Wealth Distribution

In a capitalist system, the return on investments often outpaces the overall growth of the economy. Over time, this exponential growth in returns leads to the concentration of wealth among the upper echelons of society. This aggregation occurs because the math simply won't allow for an alternative outcome. Essentially, it is a pyramid scheme, which requires a broad base to support a smaller, more prosperous top.

Economic Differentials and Wisdom of Choice

Economic freedom in a capitalist society engenders significant disparities in outcomes due to the varying wisdom of choices made. Those who wield their freedom wisely tend to amass considerable wealth, while others who make less advantageous decisions often find themselves in dire straits. History shows that this model is not accidental, but a deliberate and necessary component of the system.

Capitalists argue that inequality is a natural outcome, even a benefit. However, this perspective overlooks the fact that inequality is foundational to the capitalist system. For instance, the system relies on the division of society into classes: those who own the means of production and those who labor. The former, through their investments and decisions, wield more power and control over the resources, leading to disproportionate returns.

The Need for Inequality in Capitalism

The capitalist for-profit market thrives on scarcity to exist. This scarcity is a driving factor in maintaining high levels of unemployment and housing shortages, contributing to a perpetually unequal economy. Despite capitalist apologists claiming that inequality is a product of human nature, it is clear that such disparities are not innate but are engineered into the system. It is a mechanism that has evolved to ensure that certain individuals remain in control and benefit from the labor of others.

The effects of this inequality are stark. In systems where inequality is unchecked, the vast majority often faces poverty while a small elite enjoys unprecedented prosperity. An example of this is Venezuela, where socialist policies have exacerbated inequality, leading to widespread starvation and poverty among the populace, while government elites continue to thrive.

In conclusion, the capitalist system does not simply allow for inequality, it depends on it. Inequality is not an inevitable result but a deliberate choice that aligns with the foundational principles of the capitalist economy. Understanding this is crucial for anyone seeking to analyze and critique the structures that govern our society.