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Essay / Capitalism: the rationalization of irrationality
Capitalism: the rationalization of irrationalityCapitalism as an economic system has not existed for a very long time. Stanford says this economic system began in the mid-1700s in Europe. For a considerably young system, it seems almost impossible to imagine a different way of life. Capitalism has become deeply embedded in our social structures; it is naturalized as a way of doing things on a daily basis. If this is the case, then we humans have a long way to go if we want to achieve social and economic justice. The question I want to explore is whether capitalism is capable of achieving socio-economic justice. I argue that it cannot achieve justice because it places too much emphasis on profit rather than people and alienates consumers from modes of production, which indirectly promotes social inequality. Our current economic system, which I will use interchangeably as capitalism throughout this article, will examine why the focus on profit is detrimental to people's social well-being and explain how capitalism divides and why this can have negative consequences for individuals and communities. It is with these arguments that highlight the need for a fundamental change in the way our economy is structured and managed. The word profit is used in many different contexts, such as everyday business transactions or a discussion of a country's gross domestic product (GDP). . Yet, what is profit and what kinds of social implications are there when it comes to one of the main goals of our economy? The pursuit of profit is one of the underlying characteristics of our capitalist system. This triggers this dynamic of competitiveness among businesses and societies. The simple definition of profit is "when a... middle of paper ......ng this simplistic definition of capitalism which means that there will be 'winners' and 'losers' in this relationship." The focus on the “bottom line” leaves little or no room for consideration of social consequences such as unemployment and poverty. The disconnect created by capitalism allows it to flourish, thereby limiting the potential for achieving socio-economic justice. Fundamentally changing how capitalism works requires a political shift in power dynamics. Consumers who play a role in how the economy is structured must be brought to consciousness by demanding justice. In developed capitalist economies, private consumption expenditure represents half or more of GDP;314