26 Jun Why does Capitalism pro
Why does Capitalism provide answers to the human tendency to be violent and angry?
The reason capitalism explains the tendency of humans becoming angry and violent is the nature of class struggle in it. Capitalism divides the society into two classes of the “haves” and the “have-nots”. The first class is where the owners of means of production belong. They control the economy and determine the wages for the second class. The “have-nots” are in a permanent state of struggle to move from poverty. However, the “haves” exploit them by underpaying them. It therefore becomes difficult for the poor to become rich (due to exploitation). Karl Marx predicts that the poor will overthrow the capitalists through violence. Simply stated, therefore, human aggression and violence are results of exploitation in a capitalist society.
2. Describe how capitalism can be pictured as a system.
Capitalism is a system on the three aspects of political, social, and economic spheres of life. Politically, the capitalist system has the rule of freedom (laissez-faire). It explains how politicians, who are the capitalists, rise to power using their affluence (wealth). Their political ideologies preserve their wealth and they continue exploiting the poor, who struggle to become free from their oppression. Socially, capitalism has the principle of “individual rights”. The low class members of the society surrender their rights to liberty to the upper class who take up leadership. There is a permanent class struggle and increasing division or social stratification due to capitalism. Economically, the system has the principle of free-market. In the free-market economy, capitalists control the prices on their goods and services. Capitalists own the means of production, while the low class members offer labor in the industries. Since capitalism has different principles that fit into the three spheres of life, it is a system.
3. Why business decisions must balance between the need to make profits and the challenge of managing many people
Decision making for businesses should not just focus on increasing profits. Managing human resources is also important. The second issue entails creating a good working environment that is safe for the employees. In addition, a business must look into their welfare. For example, labor unions champion for the rights of employees, including good payment. Employees also need training to deliver good performance. When a business manages its human resources well, it has great opportunities to make good profits. The working environment becomes peaceful as strikes occur less often. Also, employees satisfaction with their jobs increases, making them effective labor providers. The quality of production increases, and businesses make good profits. A business that focuses on profit maximization only, as capitalism argues about the capitalists, risks failing to make the benefits that I have listed above. Such business will have low quality of production, because employees work in a risky environment, their job satisfaction remains low, and they participate in industrial actions, things which interfere with the normal operations of a business.
4. Compare and contrast the two styles of negotiating presented by “Getting to yes” and “The art of negotiation”
Businesses negotiate to agree. During negotiation, the aim of the negotiator is to convince the other negotiator that his way or decision is the best for both of them. In the negotiations style of “getting to yes”, the ultimate aim is to make the other person to accept your position. This style is harder than the style of “the art of negotiation”. In the second style, members who negotiate may reach a consensus. The consensus is a point where both negotiators compromise. The “getting to yes” strategy is a win-lose way of negotiation. However, the art of negotiation presents a style where there is a win-win situation.
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