Contradiction of Capitalism

Contradiction of Capitalism
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Contradiction of Capitalism
Capitalism is a system of the economy where the people or privately-owned companies make most of the decisions and are operated for profit. In this system, the government takes a secondary role as it has no control over these organizations. In this system, the production of goods and services bases on the supply and demand in the market economy.
Throughout the history of man, production was aimed at feeding the masses. As time moved, businesses faced a form of a quagmire. Technological advancements led to the overproduction of goods as could not be sustained by the consumers. The contradiction of capitalism is observed as the production of goods increases more than it can be absorbed by the market. Accordingly, the contradiction of capitalism is summarized as goods are sold at prices costlier prices than it cost to manufacture those hence obtaining larger profits. The recompenses of the workers can never equal the value of what they produce otherwise there could be no profits. This contradiction is screened by the fact that complexities in the economic processes; the results of the inability of purchasing power to consume everything that is produced may be postponed by feeding purchaser demand on credit. Nevertheless, the purchasing power will never capture the output of consumer goods as the amount paid out in wages is less than the value of goods manufactured (Greene, 1971).
Before capitalism, Marx noted that capital was owned by the individual, where people gained the worth o...