The Power of Economic Ideas

Demystifying Capitalism
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Introduction
Matters of wealth distribution have for many years continued to elicit debate. The manner in which wealth in society ought to be distributed continues to bring about sharp divisions with different people having different arguments. There are two main schools of thoughts to which distribution of wealth is pegged. One is capitalism and the other is socialism. Socialism on one hand emphasizes on equality in which there is fair distribution of resources. This ensures that there is no section of society that is advantaged than others. Capitalism on the other hand is pegged on the principle on ‘every man for himself’. This means that an individual can amass as much as wealth as possible to himself without consideration of giving others a similar opportunity. Thomas Picketty took time to research on this rather controversial subject. After many years of compiling his findings, Picketty came up with Capital in the Twentieth Century a book that would later be ranked as a best-seller. In his book, Picketty has given some very strong sentiments on capitalism backing the same with the facts. It is the arguments by Thomas Picketty that form the basis of this paper.
Thesis Statement
Capitalism is the foundation of economic growth. Despite receiving a backlash, Picketty has given tangible facts as to why capitalism is the way to go for countries looking for economic freedom.
Background Information
The globe is divided into two main spheres which are the peripheral countries and the core countries. The countries are those at the center of resource concentration. They are often well developed and are also known as first world countries. These countries are respected for their economic prowess. On the other hand, there are countries that are at the margins and far placed from where the resources concentrated. They are in the periphery or at the distant edges so that they do not easily access the resources. The economics of these countries are weak and they sometimes have to depend on the core countries for financial aid in order to remain afloat. With this illustration, it becomes apparent that there is inequality in the world. There are some countries that have more resources than others making them richer. What is the cause of this inequality? Does capitalism play a part? If so, does it promote inequality or help bridge the gap that exists?
Statistics indicate that close to the total number of resources that are available the world over are consumed by only a small percentage of the world’s population. To be precise, more than 80 percent of the world’s resources are under the control and strict management of about 20 percent of the entire population of the world. The other 80 percent of the population have to share the 20% and since it is hardly enough, they have to fight for it and it is survival for the fittest. That is without a doubt a great form of inequality. The big question however is, what causes this great discrepancy and discordance? Are the developing countries or the peripheral countries poor because the developed countries are rich? Would that be a valid argument? Does it mean that if the 1st world countries we...