Photo by fikry anshor on Unsplash
The story about the mica mines workers in Jharkhand. How do the capitalists feed on glitter?
I recently came across the story of the Santhal Schedule Tribal community working in Mica mines in Jharkhand, India. The story goes like this, Mica, a crystalline mineral found in the mines of Jharkhand. The multi-billions of dollars of industries of Car and building, Electronics and Make-up, feed on this mineral. Particularly, it is used in the form of glitter and it is apparent how much the makeup industry feeds on it. However, the Santhal schedule tribes of Jharkhand are forced to work in the risky mines to find scraps of the mineral to make a living. Meanwhile, the ‘living made’ is not enough to survive, let alone live comfortably. The lives of these workers are in stark contrast to those earning billions in the given industries. If the market size is worth billions, then why do the people from these groups are suffering from a cost-of-living crisis?
Are the systems of Capitalism and Socialism to be blamed for this inequality?
The year 2023 was the year for the riches where the top wealthy people on our planet grew richer. Out of the top 50 richest people in the world, only 12 lost money and the rest grew only wealthier. As per reports, the Top 10% of people existing on Earth have 76% of the world’s wealth and Bottom 50% only have 2%. Now, it’s evident in which category the workers of mica mines fall. And it’s just not these workers, unfortunately, they are not the only ones, there are plenty of people who live in distant corners of the world who cannot be captured under the aesthetic lens of the West. But why? What is the reason that we live in a world with so much inequality in it? Many would answer Capitalism! Maybe it’s true or maybe not. This question is a matter of debate and political ideology. After all, through capitalism, we have seen the greatest rise in wealth and standards of living in human history, accompanied by innovation and invention. However, capitalism, driven by fierce competition for profits and market share, has also been blamed for rising wealth disparities, social inequalities, alienation, exploitation, and the misery of the working class.
This somewhat explains, why some people work hard daily and still do not earn enough to feed their families and how some people earn billions a year, by doing nothing but by just employing their money.
Moreover, the working-class people, for instance, outnumber the capitalists yet the dominance of the rich is apparent and far greater than any power we have over them. But, it's also true that the distribution of capital is according to the share of enlightenment and intelligence in society. A farmer, for example, cannot take the responsibility of employing and taking care of thousands of workers under him. Similarly, an educated executive cannot grow crops or take the responsibility of feeding the population. Here, the question arises what happens when the given unfairness starts to rise in society? Capitalism and socialism, hence, have emerged based on these ideas.
Socialism, promises egalitarianism/equalitarianism by returning the resources of the society, that is means of production, to the laboring class. In doing so, it is believed that wealth disparities are greatly minimized and society as a whole may flourish. However, collective ownership and less competition might put a damper on innovation and technological progress. Furthermore, people are often wary of giving up personal freedom for obvious reasons (although it may benefit the greater good) and in that case, the government directs production and consumption choices.
In brief, Capitalism and socialism both are types of political and economic systems. Capitalism is a way of organizing production and distribution in which private individuals have their ownership. It is backed by the concept of free markets. It is a system of employer and employee. It is very much what we all have around us, what we all see in this day and age, what we live in today. But like everything else, it comes with its own set of limitations. Socialism, on the other hand, is a type of system in which production and distribution are controlled collectively by a group of individuals or the government, in most cases. In short, the capitalists aim for profit and the Socialists aim for the general societal welfare.
It’s pretty intuitive to understand that Capitalism and socialism are like two extremes on a spectrum and the way to general prosperity and welfare is somewhere in the middle. It is like when Socialism and Capitalism share a symbiotic relationship, in which they are interdependent, coexist and influence each other. This article means to explore the ideologies, their practicalities and how both systems can shape the framework of our political and economic landscape and make the world we live in a better place.
Emergence of Socialism. Where does the idea come from?
Socialism was a direct response to the rise of the Industrial Revolution. The Industrial Revolution served as the start of a new era which brought several economic and social changes, first in Great Britain and then to the rest of the world. These economic and social changes were the symptoms of capitalism, with new manufacturing processes, increased production, and the concentration of wealth in the hands of industrialists while the working class faced harsh working conditions, long hours, and low wages. As industrialists grew wealthy on the labor of workers who increasingly lived in poverty, socialism emerged as an alternative to capitalism, one that could improve life for the working class.
During that time the concept of Liberalism also existed which vouched for the rights of the individual, liberty, consent of the governed, political equality, right to private property and equality before the law. Socialism grew alongside liberalism. Liberalism demands equality in its extreme form, and liberalism expressed as an economic philosophy can be called Capitalism. In liberal order, hierarchies naturally develop and against it, socialist ethics aspired towards Equalitarianism/ Egalitarianism – which was concerned with the concentration of economic power in the collective hands of the society. Socialists wanted to mitigate hierarchies. Generally, it is pointed out that all the early influences of the socialist principles were inspired by the sense of shortage of unbiased liberalism, that is, unregulated capitalism. They all collectively coined the principle of working together for the community, for the communal good. In essence, it was all a reaction towards the individualism of liberalism. However, by the early to mid-1800s socialism became more industrialized and with that class distinction sharpened, that is, the income disparity grew and new types of socialists emerged.
Global capitalism: Socialism in today's world
Modern socialism developed in opposition to the excesses and abuses of liberal individualism and capitalism. During the 20th century, many modern socialists adjusted to a high regulatory and redistributive system referred to as market socialism or democratic socialism in the form of mixed economies which we often see around us. Socialism has expanded majorly in two ways. Firstly, in the countries where from the beginning they followed the idea of free markets. State intervention has developed gradually, usually in the name of protecting consumers, supporting industries crucial to the public good (in fields like energy or communications), providing welfare, or other aspects of the social safety net. Most Western democracies, such as the United States and India, follow this model. The second path was that of states evolving from pure totalitarian (No opposition, only Single Authority) regimes. Individuals' interests are considered a distant second in importance to state interests, but elements of capitalism are adopted to promote economic growth. China and Russia are examples of the second model.
Moving forward, It has often been believed by celebrators of capitalism that it can overcome its weakness on its own. But this is not true, as has been pointed out by the victims of capitalism. Capitalism, like any other system, has its own set of limitations, which include:
- Distributes wealth Unequivocally, unfairly and undemocratically, that is, under this system the income gap increases between the rich and poor.
- The system is fundamentally unstable. It crashes almost every decade and people get out of work and businesses collapse. Even if you pick up a newspaper today you will see the news of the next incoming recession and almost everyone questioning ‘when’ it will be. Mind you, no one asks 'if' it'll be.
- Doesn't overcome itself/ self-correct.
Now, you may ask what to do about it, then. Because no matter how much you try it still is in practice and promotion. So, what could be done about the mess that it creates? Here, it gives many socialists a chance to agree upon socialism!
Now, it started with questioning how you can save society from capitalism's limitations. How do you save yourself from being a victim of the capitalist? The answer is government! You see, the Government represents socialism, public wealth, for the public, by the public, saviors of capitalism that could not save itself, etc.
Historically, to save society from the negatives of capitalism, several measures were taken by governments throughout history, many of which are still in practice. For example, to deal with inequity created by capitalism, a tax system was introduced.
Another problem was that of instability and to deal with it Keynesian economics was developed. Without getting into details, it explains how the govt can take part in the economy and manipulate govt spending and taxes in a way to fix the problem of instability, make it less severe and turn the economy towards recovery and growth. Before the dawn of Keynesian economics, it was believed that the free-market forces are always at work and that booms and busts are a part of the economic cycle, ultimately, after a bust, market forces (Demand and Supply) will work their magic and get the economy back on track. Only, there was this problem of them working very slowly. It could take months and in worse cases, years, for the market to recover and until then people will suffer the impact of a slow-moving economy. Hence, Keynes highlighted the role of government spending and government supervision on an economy, to emerge out of a recession.
Then why are the problems of poverty and income disparity not gone?
Well, suffice it to say, when taking the goods of both the systems, getting their negative traits as well is inevitable. And this has led to, an ongoing introduction of a new type of system of socialism: One person, one vote, all votes equal. Where people together decide as a workforce, disregarding the whole system of employer and employee. It is currently the most advanced form of it.
Balancing the Socialist and Capitalist Ethics
Carl Marx identified the core problem of the Employer and employee relationship. According to him, the employer extracts surplus benefits from the employee which contributes to the growth of the economy, however, the benefit is for the employer to keep and he pays much less than what he pays to the employee. The fourth type of socialism today is what is trying to solve this core problem which every other major type overlooked.
Well, it’d be safe to say that countries in today’s world preserve the good elements of the ideologies. For instance, in the Nordic Countries, Sweden, Norway, Denmark, and others, people there boast about their vibrant social welfare systems consisting of Universal Healthcare and free Education, which makes Americans Envious. However, they also encourage private players and entrepreneurship and they are, of course, elements of Capitalism. In short, we have nuanced versions of capitalism and socialism all around the globe. Generally, governments practice socialism in the form of social safety nets where they let capitalism flourish and help society with its inherent benefits and at the same time safeguard its people from the inherent disadvantages of capitalism, the government intervenes in the form of social programs, unemployment benefits, minimum wage programs, etc, to prevent individuals from sliding into the cost-of-living crisis.
This co-dependency for the overall good of society is evident from time to time during economic downturns or crises, such as that of the financial crisis of 2008, where the government stepped in to provide for businesses and individuals both and in the process revealing the dependence of the “free markets” on the “socialist mechanisms”.
On a brighter note, it’s not entirely right to blame capitalism for all the negatives in the world when it is also the reason for most of the good things around us today, which include innovation and economic growth. The innovation has also given rise to technology, scientific achievements and a higher standard of living for many. Moreover, the given concept of “Free markets” has Incentivised such innovation and made the given innovation accessible to a wider audience.
Let's understand it with the help of an example, before 2015, in India, unlike today, the Internet was not accessible in many rural areas, due to a lack of infrastructure and many other reasons. But when the leading Business brand in India – Reliance Industries launched JIO Network, not only it disrupt the telecommunications market and brought its competitors to their knees but also made the internet Cheaper and accessible to people in distant parts of India, it also bridged the online infrastructure gap between the urban and rural areas. And this revolution in the telecom industry has helped so many with education, jobs, and in many other aspects of people’s lives. Hence proved, capitalism is worth having.
Besides, another manifestation of this interdependence is Public-Private partnerships. Especially in terms of physical infrastructure projects in India. Such agreements leverage the positives of both parties, including efficiency and innovation of the private sector and oversight and public interest of the government sector, which ultimately leads to the overall good of the society.
Conclusion
On a brighter note, capitalism today is still evolving alongside socialist ethics. Thanks to the initiatives taken by many social activists, aware consumers, and governments, corporations are starting to embrace green innovative, renewable energy and philanthropy. Which is considered a great step towards maintaining a delicate balance between profits and the society we all are a part of. Therefore, the ironic interdependence and dynamic co-existence of both systems in our society is ever-evolving. The only twist in that story is how socialist policies strike a balance between growth and overall welfare. Well, suffice it to say, that’s easier said than done.
. . .
REFERENCES: