THE TIE BETWEEN CAPITALISM POVERTY AND

Written by Everlyn Chong

Layout by Haven Cha

Capitalism, an economic system based on private ownership of the means of production and their use for profit, is prominently seen in today’s world. Originating from Europe in the 19th century, Capitalism has been the dominant economic system in many countries since its inception. Countries like the United States, Singapore, and South Korea are all economically developed nations that run on a capitalist system.However, even though capitalism has allowed for significant economic growth in many countries, it is commonly criticized for perpetuating poverty.

Capitalism promotes competition between businesses, which results in worker exploitation for the sake of profits. workers around the world commonly endure hazardous working conditions only to receive little pay. As a result, there is an increase in the number of people who are struggling to make ends meet and a concen- tration of wealth in the hands of a select few. Furthermore, the inability of low-income communities to access decent education and employment prospects keeps people in poverty and prevents them from climbing the economic ladder.

Additionally, in capitalist nations, poverty is made worse by the absence of government intervention. The market is assumed to govern itself in an ideal capitalist economy, yet this frequently leads to a failure to satisfy the needs of underprivileged people. Vulnerable populations lack access to basic essentials like food, housing, and healthcare when there is a weak social safety net in place. As a result, poverty is difficult to get out of, creating an endless cycle that is passed down through the generations.

However, it’s crucial to remember that capitalism is not the only factor contributing to poverty. Poverty is largely sustained by structural issues, including institutional racism and inequality. However, capitalism’s emphasis on profits rather than people can aggravate these fundamental problems and lead to an increasing wealth inequality.

Capitalism and poverty are intertwined, as the economic system focuses on the profits, making the working class sink deeper into poverty. Although this economic system is capable of bringing great profits, it is important to emphasize that the never-ending cycle of poverty the working class will go through and to address solutions in order to decrease the wealth gap.