Democratic Capitalism and Morality

Democratic Capitalism and Morality

Introduction

It is well known that today billions of people are condemned to subsist on less than a dollar a day, and that half the world's population lives on just $ 2 a day. We also know that global inequality is increasing rapidly, and that the gap between poor and rich within countries is increasing (Posner, 2010). There is no perfection in any economic model created so far, but there are several advantages of the capitalist system. Wealth and poverty are relative concepts vary widely between individuals and countries (Vernon, 2008).

Capitalism is the economic system existing in United States and in virtually every country in the world, and opens space for companies; small businesses and several branches prosper. Although criticized and opposed by many intellectuals of the left, students, and people who feel excluded from the economic model on which favors the accumulation of capital (and assets) - despite the ostensible and Manichean combat system lost power in these new times giving space to the criticism with arguments s most consistent - here the model that persists to this day successfully in major global economies (Cohen, 1995).

The gross national product per capita allows a ranking of countries even if this indicator is insufficient (does not include the underground economy and shows the oil-producing countries to a place above the average standard of living of the population). North America, Japan and Western Europe appear to be the richest areas (75% of global wealth).

In contrast, much of Asia and especially Africa are the poorest areas. Population growth but also a food shortage, health and education and political instability are obstacles to development. High infant mortality is an indicator of poverty. Between rich and poor countries, some countries (South Korea, Taiwan, Mexico, and Brazil) managed since 1970 to an intermediate position. Inequalities are very large in the emerging countries as the whole population does not benefit from improvements in living standards (Edwards et. Al., 1972).

Discussion

American structuralist approach emphasizes the mutual interdependence between economic structure, institutions - notably the power relations - and income distribution. In this approach, the occupancy level plays an important role both on poverty as on the distribution. It is assumed that the income of an individual (or household) reflects the relative economic and political position of their social class and income distribution is shaped by national differences in these positions (Fitzgibbons, 2000).

Few states among the least developed countries have a democratic system. The power thus lies in the hands of a minority often agglomerated around near the leader. With the political and economic power, the minority can therefore often monopolize the wealth of the country, whether in the form of natural resources or they come from international aid. Historically, some countries have large concentration of income and a high degree of poverty (Cohen, 1995). This fact raises many interpretations and analyzes. The resurgence of the issue of income distribution comes against the growing disillusionment with the liberal reforms implemented in the nineties ...