In much of the world capitalism holds sway and there is no denying that, as an economic and social system) it has benefited humanity to a great extent. It has built the great global technological empires that give residents in “western” societies all the consumer goods that we enjoy.
It has provided well for its citizens in general with the standard of living in western societies being the envy of other people in other nations, to the extent that they strive to move to western societies even if their homelands are not embroiled in war and tyranny.
But capitalism has its faults, and to some extent it can be likened to a car without brakes. A car without brakes is still driveable, and it is still steerable and can stay on the road until it hits a downhill stretch. Then the driver cannot control the car as it gets faster and faster down the hill and the inevitable will eventually occur.
Capitalism tends to vest power in the businesses and organisations that benefit from it. It tends to concentrate the capital from which it gets its name, of course, in a few individuals and while it benefits most people, there are small but growing number who slide to the bottom of the heap for one reason or another.
The people at the bottom of the heap are not totally without the benefits of the capitalist system. They mostly have televisions for example, which would have been considered a luxury a few decades ago.
However, they often have difficulty with food, accommodation, schooling and medicine. Any jobs that they get will be generally low skilled and low paid. They may even have to work two or more jobs just to get by.
In many western societies houses are becoming more expensive, as measured against family incomes. As houses of their own are out reach for them, they generally rent their accommodation, either from the state or private landlords. Even then they feel the effects of rising house prices in their rent, and often they are forced to rent houses which have serious defects, like damp and mould.
Landlords are of course subject to the capitalism system and are reluctant to spend much money on repairs and so on, as any such expenditure comes out of their pockets. Houses that they let out are often allowed to deteriorate badly.
For those at the bottom of the heap, schooling may be an issue. While the state provides schools, not all schools are the same. A school in an upmarket suburb is almost always better resourced and has better teachers than a school in a poorer area. It’s no surprise, then, when the upmarket schools perform better in terms of qualifications achieved by the pupils.
Access to medical care is often a problem for those at the bottom of the heap. If a trip to the doctor costs $50, as it may well do, then that is a big chunk out of the family budget, and any prescribed medicines will at to the burden. As people get older, they may no longer be able to work and yet this is the time in their lives that they may need medical care more often. In contrast, a people higher up the scale will be more able to pay to have hip operations and so on performed privately.
People at the top of the scale often look down on those at the bottom as being lazy benefit bludgers who are unwilling to work. This is in most cases untrue. The barriers to rising from poverty to plenty are many, and are in the main insurmountable for many.
The poor are not stupid in the main, though many may not be the brightest of people, and the chances of making it off the bottom rung of the ladder are off putting to many. There are always stories of people making it against the odds, as the saying goes, but in most ways those who succeed in rising up the scale merely reflect the odds.
999 out of a thousand triers will fail, regardless of drive and ambition. Many will therefore not bother. Even if they did try, they might raise the odds to 2 in a thousand, scarcely any better. It truly is a trap at the very bottom of the heap.
The capitalist system is not able to provide for people in their old age when they are unable to work too. One can put aside a portion of one’s income to help provide for old age but many do not bother, and even they do, the portion that they can put aside depends on their position of the scale of wealth. A poor person, living from hand to mouth, may have no income that he or she can put away for old age.
Traditionally, at least in the last century or so, the state has helped out by providing a guaranteed income for old age in the shape of a pension. However this still has to be paid for and taxes are the way that it is usually done, which means that the richer people will pay for the poorer peoples’ pensions.
It has reached the state in many western societies that welfare, that is schooling, medicine and provision for old age is no longer affordable for society. This is a coming crisis that the current capitalist system cannot avert. It is not exaggeration that it may be the end of civilisation as we know it.
If the poor can no longer be sustained by the system, then stratification will definitely occur. The “have nots” who outnumber the “haves” will become jealous of them, and that may lead to actual conflict between the classes.
It is not an issue that can be addressed by merely changing the distribution, by effectively taking from the rich and giving to the poor, as this is unfair to those who are considered rich, and will be ineffective anyway, as it provides no incentive for the poor to provide for themselves.
But if nothing changes, things will get worse and worse until conflict, pestilence, famine and death spread in waves across the Earth. That is, unless we find a better, and fairer societal system.