The capitalist economy creates imperatives that bear

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“The capitalist economy creates imperatives that bear urgently on political life” OWNING CLASS, MIDDLE CLASS AND WORKING CLASS The owning class are the very rich families and individuals who own the wealth of society includes both wealthy stockholders and small business owners; however, the small business owners control a very small portion and are often stomped out by the bigger competitors Ex: in the 80’s hundreds of small to medium sized businesses became bankrupt The working class are those who are dependent on that class for employment The middle class are those who are professionals and middle-level executives who lie in the middle in terms of income. education, and life-style. How to reach the owning class? when your income is very large and comes mostly from the labor of other people HOW WEALTH IS CREATED Wealth is created by the labor power of the workers. They work hard but only get paid a portion of the wealth created, while the rest goes to the owner (UNEARNED INCOME). Depictions between slavery, feudalism and capitalism. Slavery- they only receive bare subsistence, feudalism they work without compensation over a course of time, and capitalism the portion taken from the worker is NOT visible. Corporations should not be called producers because they produce nothing. This is where O’Connell’s distribution of wealth ties in Top 10% owns 98% tax exempt and local bonds, 94% of business assets, 95% of the value percent of all business assets 90% owns have little or no net assets IF YOU ARE NOT RICH, IT IS PROBABLY BECAUSE YOU LACKED THE INITIATIVE TO PICK THE RIGHT PARENTS AT BIRTH. Income from investments and property are outgrowing income from work = large wealth disparity BANKS AND SUPERGIANTS Banks control interest and supergiants buy up giant companies (ex: Texaco and Coca Cola swallowed companies Getty Oil and Columbia Pictures, respectively) Debt probs: Corporations buy other companies, buys its own stock, and builds more factories by borrowing from the banks…..when they can’t pay their bill it results in layoffs, reduced wages and benefits, broken labor unions Centralized food industry is suffering because it has grown dependent on large corporations and cuts corners through intensive row farming and heavy use of toxic spray. Independent family farms are dying. Whether companies are or are not under family control, they are anything but public minded EXPANSION AND CAPITAL ACCUMULATION
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The dynamic of capitalism: more than just concentration of wealth but capital accumulation and expansion dynamic. Money grows on human labor. Ultimate purpose of the company is not to produce goods and services but to make money for the investor/owner Expansion: crucial to survival. It must happen quickly in order to gain control of more capital Many labor saving devices and overseas investments are designed to lower wages and eliminate jobs. The
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