Future of Capitalism and Karl Marx

Future of Capitalism and 

Karl Marx

by: Saddam Hassain Magsi

Staggering income stagnation, burgeoning socio-economic inequality, looming environmental catastrophe and astounding spread of pandemic depict that Capitalism is going to face new anxieties in the future. According to Karl Marx, a period of growth is followed by recession and depression and we have already entered a recession. He was right. In the midst of capitalist creed, the world is witnessing geographic, class and global divides. On one hand, Capitalism has produced booming metropolis, having it all and the winners. On the other hand, broken cities and left behind are bitter pills to swallow. Now, having left its ideological competitors in the dust, the system is confronting its own flaws. Private capitalism, as well as state capitalism, is struggling to avoid the issues created by the system. Today, two capitalist camps are battling for ascendancy: A liberal meritocratic one, marshaled by the advanced industrial democracies, and a state-led, the political one, headed by the People’s Republic of China. Problems are looming ahead for both the systems. Technological disruptions, climate change, economic crisis, rich and poor divide; problems in public policies are a harsh reality. Therefore, overcoming these countervailing challenges is pressing need of the hour to provide breathing space to the world. It is high time we faced new realities and tackled the problems head-on.

 

  "On one hand, Capitalism has produced booming metropolis, having it all and the winners. On the other hand, broken cities and left behind are bitter pills to swallow. Now, having left its ideological competitors in the dust, the system is confronting its own flaws."

 

Evolution of Capitalism: quite successful as a system of political economy 

 

Capitalism emerged in the 18th century, lifted off in the 19th century, conquered the world in the 20th century and is in decline in the 21st century. There is no denying the fact that capitalism is an efficient system. It provides employment opportunities, generates capita and so forth. Today’s advancements are owing to the capitalist system. At the same time, it also brings inequality, poverty, hunger, and divide. Oxfam Study found that the richest 01 % bagged 82% of wealth created last year. These startling figures show that the future of Capitalism is definitely going to face certain bottlenecks. 

Relevancy of Karl Marx in the 21st century: Every Growth period is followed by recession and depression.

Capitalists always try to maximize the profit. The purpose is nothing but “Profit Maximization”.

Karl Marx maintained that capitalist societies have a business cycle: A period of growth is followed by recession and depression. As society becomes mature these cycles become more frequent and severe: A high will be too high and low will be too low. The available literature suggests that we have already entered a period of recession. Trade War between The USA and China hurt the global economy, it brought us to the brink of global economic crisis. The spread of COVID-19 triggered the already deteriorating situation. Now, the world is going through a nightmare scenario. 

Hurdles and Bottlenecks are looming ahead in the pathway of Capitalism

Capitalism is currently facing umpteen economic, social and environmental challenges. Many countries continue to be victims of absolute poverty. Studies suggest that “More than one in three people in OECD countries are estimated to be economically vulnerable “. Capitalism has survived such challenges in the past. It is yet to be seen whether capitalism sustains these shocks or not.

How to overcome the Anxieties: the way-forward

Issues remain in place, but, efforts are going to surmount them. It is time to face the realities. Either we can bury our head in the sand and hope that problem would resolve itself, or we can tackle the problem head-on. It is rightly said that realizing the problem is the first step towards solving it. Likewise, we need a new form of capitalism based upon principles of morality and ethics. The predatory capitalism can wreak havoc only. We also need to decentralize responsibilities and restore inclusive societies.

~ Saddam Hassain Magsi

The author has  deep interest in International security and peace studies. 

He can be reached at: magsisaddamhussain@gmail.com

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