Capitalism And Charity

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The world’s wealthiest capitalist Bill Gates raised this question before the World Economic Forum at Davos in January last year and suggested  that now, capitalism should, without changing its essence or even its form, seek to draw the hitherto marginalized populations into  the capitalist mainstream.

Capitalism makes self-interest serve wider interests so it should benefits every one .While making profit as it meant to do it should help those who do not fully benefit from the market, because though technology revolutionaries production it does not distribute.

Many agreed with Gates but a majority took the position that the job of the business corporations is to maximize profit not altruim.Managers who are hired to do that job, would not be justified in diverting some of the profit to charity. They should maximize profit and distribute it among shareholders. The latter may give some of it to charity if they so wish.

It was also  pointed out that charity by corporations would effectively lower their rate of profit, which would adversely affect the general rate too. Now to capitalism as it exists. Two commodity owners confront each other in the market. One carries his capacity to laborite labor; the other his capital that is the instruments and objects of labour.They agree to co-operate in production.

The money realized by the sale of the commodity partly pays for the referred value which goes to the capitalist as the owner of the raw material and the instruments used up in the production. The rest of the money is the new value created entirely by the labor of the worker.

However it does not all go to him, as it should because his wages are determined not by the labor put in but by the cost of reproduction of  his labor capacity which is his cost of living according to the prevalent economic and cultural standards in that society. The rest is taken by the capitalist as surplus value which he shares with the claimants of rent and interest.

The capitalist class thus lives entirely off the working class for whose existence is important a body of unemployed workers and also restricts the wages from rising.

At the same time, competiton compels capitalists to increase the productivity of the workers by raising the technical level of the instruments of labour, which enables the workers to produce more goods without applying more labor hours.

Those capitalists who do not succeed in achieving this go out of business.

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