English: Capitoligharcy as The Combination of Capitalism and Oligarchy
Source: transisi.org
Capitalism was initially developed to oppose the traditional economic system. At that time, economy and capital had only circled around the royal family and nobility. Their vast amount of wealth is usually obtained from inheritance, not because of their hard work.
Capitalism began in the 16th Century in West Europe, it was starting with the growing number of a more complex society in Europe and the creation of a new commercial system in which created more merchant societies who had a considerable amount of capital stock to develop their wealth by trading freely without government intervention.
It was reinforced by the industrial revolution in Britain between 1760-1840, with the industrial revolution, all process of producing goods ultimately used the mechanization system of a steam engine. The mechanization system has finally enabled us producing goods in abundant quantity and can be sold at a more affordable price for anyone. Capitalism is still continuing to develop until today in almost every country of the world.
Unfortunately, the ideology that was initially established for the prosperity of all through the ownership rights for all groups of people, but instead, it has increased the inequality rate in which is getting worse in the modern society. Capitalism is proved to have given the opportunity to gain prosperity only to the capital owners.
Has there been something wrong with this system?
Has this system been only enriching the owners of abundant capital?
Each economic system certainly has advantages and disadvantages of. However, there are two adverse effects that usually arise from this economic system. First, capitalists often bribe the government elite and officials in order to smooth out the policy in which protects them to increase their already abundant wealth. A poorer society’s will is always inaudible and they almost have no any political rights. It usually happens in a country that is led by extractive government institutions and weak law enforcement in which could eventually lead to oligarchy.
This is what we can say as capitalism which is going with oligarchy. Oligarchy is a system of government that is held by several groups of elite society who prominently have a big influence due to their wealth, family factors, and political connections. A Government which is run by oligarchs must be run extractively. If there is a country that embraces capitalism, meanwhile, the government is run by oligarchs, it could be more likely to pose a great danger in the longer term, the economic inequality would have been inevitable. The owners of capital are always willing to continue to increase their wealth and influence, while the ordinary people which own smaller amount of wealth or capital and have a lot less political influence, they would probably remain living below the poverty line. It is absolutely dangerous when capitalism and oligarchy are becoming one. Capitalism could prosper all levels of society when is run in a country with an inclusive government (a government that is clean from corruption, nepotism, and collusion), democratic, equal, and a strong law enforcement for anyone.
In a reckless capitalistic country, government is almost completely absent for the welfare of its people. In this system, the role of government in the economy is relatively small. The welfare of people is more to be the responsibility of each individual. there are almost no safety nets for the needy people, even if there was a social benefit, it would have been very small amount of aid and difficult to access. Healthcare, tuition fees, retirements and unemployment insurance are absolutely the responsibility of each person or family. It could have been very dangerous if we lived in a reckless capitalistic country with an oligarchic government plus the increased cost of living. It’s absolutely going to be totally difficult for us to live prosperously and get out of the poverty trap. It is what makes poor people become poorer because they almost no have an equal opportunity in a capitalistic society.
Ultimately, We can conclude that capitalism is not an economic system that leads to poverty and inequality. But, surprisingly the capitoligarchy as the combination of capitalism and oligarchy which absolutely has made the inequality problem becoming worse over time. Therefore, it is important for a country to have inclusive government institutions and good law enforcement, so that all levels of society can enjoy a higher economic growth and of course, the implementation of economic equality and political opportunity for all. Capitalism should absolutely be implemented in an inclusive government in order to gain prosperity for all.
The government should play a more significant role for the welfare of its people. Education and healthcare need to be affordable and good quality for all, which absolutely can lead to a better living standard. In addition, government should better provide a safety net for pensioners and unemployed people, so that they can still live sufficiently in spite of being unemployed. With an adequate safety net, they wouldn’t have fallen into poverty even if they lived under a reckless capitalistic system. The government can also conduct and facilitate some kind of trainings for young workers or unemployed in order to improve their skills, so that they could possibly get a better job afterwards.
Therefore, capitalism should have delivered us to an unprecedented prosperity level if it had been implemented by an inclusive government institution. Furthermore, good law enforcement and a greater role of the government to support the welfare of its people should be carried out to protect people from the possible future poverty, thus they are still being able to live sufficiently and prosperously even though they live with capitalism.
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