Capitalism

I agree more with Adam Smith’s idea regarding capital as a preserved form of labor and that the capitalist also deserves a place in the growth of nations together with the workers. Owning a company or a land is not easy, it needs lots of effort in working and in saving money. By having a large amount of money in hand, a person can now build up a company that can reinforce the labor to create value, meaning, it is true that the labor and not the capital creates new value but still the capital is needed to help the labor in this process. How will the labor survive in creating new value without the capital? With the previous efforts of the capitalist, he now deserves to own more and get more compared to the ones who do less effort. Now comes the issue of inheritance, my point about this is that a man, especially here in the Philippines where family is of great value, can make sure that the one he loves will be secured in the future. Meaning, he is required to do more effort and if he does then he can use what he have to secure the financial stability of his family.

However, how can we make sure that this capitalist and his family will not suck up all the resources and leave the others with nothing (‘cause this is the most asked question)?

In Marx’s point of view, capital is a reward of the capitalist’s previous labor and should not be used to exploit other people or the living labor. Actually, this is true together with the idea that capital is a preserved labor, but the issue does not revolve here. The issue revolves on whether the capital will just be used to reinforce the labor to create new value or will it be overused to exploit the living labor. Obviously, if the former happens then there is nothing wrong but if the latter dominates the scene then there must be something that must be done about it – and that is to stop it…but how? The only way that I can think of is to limit the earning of a capitalist, meaning, he can’t monopolize the market and a single person can not own everything in due time (and no person will have nothing). But, by doing this, by slowly eradicating the extremes, then slowly we will approach the middle line, meaning almost everyone will have almost the same amount of money or number of properties (or if we don’t want to get there, still, the differences in social status or classes will be diminished). But if this happens, will there really be progress? No. Free competition leads to progress since everyone will strive hard to survive. However, it is still true that there will come a time that the will be no longer free competition and some will be left behind or eliminated along the way. But does it stop there? Of course not, since the survival of some will be threatened then it is there instinct to fight more and do more effort to cope up with the challenge. Meaning, free competition will again be established and the cycle continues…