Do we can settle the ‘best’ distribution status?
- Essay of ‘Capital in the 21st century’
Jae Hyeong An
Since I started learning ‘Economics’ when I was 17, 1st grade student of high school, my goal was to succeed in my career and to be very rich. And I believed, that success and wealth is the result of one’s endeavor to what he does and what he is supposed to do. However, I meet kind of news that the lots of employees who do their best in career and pay full loyalty to corporation do not make enough money to buy even a house. Meanwhile, for the corporation, it is becoming even richer and grows annually. Also, including the employer and board of directors, the income of top 10% of population even grows very rapidly. The conflicts between these two groups-employee and employer- are highlighted everyday. The most famous kind of conflict is demo from labor union of big corporation, claiming for the increase of salary and welfare. And the more important thing is, these divergences of money between these groups do not end in just the money and is leaded to the divergence of other things, such as power, justice, and welfare. In other words, the money distribution status means the distribution status of every other thing in capitalism. Then, why the divergence of money happens, and how does it look like? Mainly, the divergence of money starts from the explosive population growth, rural-to-city migration, and industrialization in late 18C of Europe. From Ricardo to Marx, the 18C to 19C economists predicted that the minority but powerful party in the industry-whether it is agriculture or manufacturing- will necessarily takes the large portion of profits, which can be stated as a ‘capital’ income. And it lasted quite really true for about 60 to 70 years, until the ‘labor’ income finally started to grow, but not that high. Actually the gap decreasing between two groups was due to the external accident, such as World War 1 and 2, Great Depression. When...
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