AskProfWolff: Why Capitalist Inequality Matters

A patron of Economic Update asks: "My dad is very conservative and when I said that capitalism promotes too much inequality he responded 'I don’t care. Inequality doesn’t matter.' I’m wondering if you have a response besides the morality of inequality and a way to convince someone inequality is bad economically."

This is Professor Richard Wolff's video response.

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[obersoth]

The poorer the people, the more desperate they are to take on the jobs with low wages and poor working conditions. Here in the UK, the Amazon keeps a constant influx of new workers that are hired on a period of 12 weeks maximum with no guaranteed hours, and who are more than willing to give in 150% everytime they get a chance to work. If they don't work hard enough, they can easily be replaced; dozens of new workers are already in the dressing room waiting desperately to get some playtime. In this way you maintain the 150% productivity at all times because anyone who doesn't give their heart and soul during the shift will get a text message saying there is not enough volume tomorrow and they should stay at home. Some new desperados will take their place and they'll kiss Bezos' hands for an opportunity to do so.

Overall, inequality is a design

[jamesmorton]

The most memorable pages in Das Kapital are the descriptive passages, culled from Parliamentary Blue Books, on the misery of the English working class.

[DrSanity]

"You can't tell me you can make any system or country work with low wages and high prices, and high wages with high prices don't mean anything when the prices eat up the wages and don't leave anything over." - Henry Ford

[subhadityasen]

In Indonesia once people rioted and did targeted killing of businessmen. The government and IMF promptly rolled back an anti-worker measure. When Civil Rights activists were preventing businesses from operating freely in a town their demand was met after a while of disruptions. Going after businesses benefitting from the oppression produced results. Going after politicians may not work as much. They will get replaced by another set of puppet politicians. Seems to be an age where politicians are slaves to business interests and who get replaced quickly if they start falling out of line.

The subtly rigged election system ensuring anti-business or uncontrollable politicians never get elected.

[bradypustridactylus]

If a person is in poverty at the subsistent level, they have no resources for risk taking. If a person has extreme wealth, they have no incentive to take risks. Only those with a balance between security and need see risk taking as fruitful. Extreme inequality causes an economy to stagnate.

[jezra]

This just seems so basic and obvious, conservatives must be trying not to get it.

[dillon]

Inequality has exploded in 2020. I have some friends who have lost their jobs and are bouncing along the bottom and I have others who, because they are in what I would call the investment class, have seen their wealth increase by 50%. Crazy.

[alexgoslar]

Well explained Professor Richard Wolff. Thanks.

[kdacuna]

Always love hearing what you have to say!

[DrSanity]

Inequality is too often a product of dependency and privilege.

[nriqueog]

When politicians and pundits mention "the GAME"...The 2nd example explains it PERFECTLY.

[josephschaumberg]

Thank you for the clear explanation of our political condition here in the USA.

[hedleybutler]

Dr. Wolff in a cluttered study wearing a cozy sweater expounding on anti-capitalism is the vibe.

[bntagkas]

one of the problems with capitalist systems, and its also seen in video games, is there are too many people, and they are too easily connected, language barriers and travel barriers etc are easy to overcome. so in a system that has 1 currency that can buy any land, any person, anything at all, money, and also a system with inherent widespread poverty, its very easy to treat your employees like shit, and still you will get more employees even if some leave...in games i have played it is tested, to have a maximum of a 'world' with 3000 people, vs a 'world' of 15000 people, and the difference in behavior is immense...in the smaller world people are much nicer to each other, there is scarcity of people so people are more content to invite whoever for a job, its so scarce to find a person that wants to do what you want to do, that you are just glad when you find them, and you are willing to work with them to overcome the challenge, you don't expect them to know what to do, you help them do their job etc.
on the other world, of 5x the people, the people are much ruder, everyone is always in a hurry, when you invite someone who wants to do what you want to do, if you see they are too far away from the target location, you usually kick them from the group, because you can find someone else who is closer very fast, when you are looking for people do try beat some enemies, you aren't content with them just showing up, they must prove to you they have experience, and are over-prepared in every way, or you simply replace them with someone who does, its a very toxic environment.

[mikegriggs]

Merry Christmas to you and your family

[veryintellijent]

Just here for the algorithm (:, love you mr wolff

[kmcq]

I’ve had a capitalist I know well tell me that anybody can become a millionaire. He shook his head and said I could if I tried. But key to his comment was the word “anybody.” I think that implies that the true conceit is that in this view of the system, everyone is “equal” except that some try to be rich and some don’t.

[MrOtis]

Inequity isn't a symptom it's the goal.

[mauibill]

I have decided that I am an egalitarian in social, political and economic issues. "Equality"
Cheers

[skapunkoialternativeliving]

That is a great Point Henry Ford basically said the same thing.. if they're going to build cars are going to have to pay people enough money so they can pay to buy these cars..