The theory of profit has changed many times over the course of time, from Smith to Keynes, profit has been redefined and debated over creating a divide in thought. Is profit natural or not? According to Marx and Smith, two very renowned political economists, profit is not natural, that profit is a result of exploitation of the labor force resulting in a greater total revenue than total cost(definition of profit). On the other hand, Keynes believes that profit is natural, the product of a capitalistic society with business cycles where wages are regulated by the market and in certain cases permitting firms to turn a profit. Really though, based on classical thinkers, profit is unnatural, the product of class discrimination between the Bourgeoisie
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Some of this competition for jobs is the result of over-industrialization, as more and more firms factories turn towards machinery to do the workers jobs more quickly and for free. However, Keynes argues that over industrialization is a good thing, theorizing that it could lead to a utopian society where there is no longer a use for the laborer and rather people can spend their time whatever they may please. This theory make work in the long run but in the short-run, his idea is dystopian, the root of unemployment and the horrible exploitation of workers. Besides for the takeover of machines in factories however, Smith also argues how the division of labor is resulting in the exploitation of workers, by undervaluing their work. For example, Smith’s example of the division of labor for the production of a nail shows how workers values are quickly being diminished. There’s no longer one worker making an entire nail, a relatively difficult skill. Instead, there are four or five workers making various pieces of the nail, such as one making the head of the nail and another shaping the tip of the nail. As a result of the divisions of labor, the laborers value is no longer there. The value of the laborer shaping the point of the nail is minimal, making it easy for the …show more content…
The exploitation of workers is very common, especially by big US corporations such as Walmart and McDonalds, or Nike and Apple overseas. Walmart for example, is notorious for paying their workers the bare minimum which in the US is no longer enough to subsist for the minimum wage has not adjusted to economic growth and inflation. With Walmart especially, they have made the news for how badly they exploit their workers by mistreating older employees, giving them poor health benefits and severely underutilizing their knowledge potentials. Through this exploitation, every member of the Walton family(owners of Walmart) has made their way high onto the Forbes 400 Billionaires list. But it’s not just Walmart that does this, around half of the US population is employed by large corporations who’s only goals are to turn a profit at the expense of their workers. Marx would roll over in his grave if he saw how badly and how many exploited workers there are under these mega corporations. Profit is not at all natural, it is the result of severe
Some of this competition for jobs is the result of over-industrialization, as more and more firms factories turn towards machinery to do the workers jobs more quickly and for free. However, Keynes argues that over industrialization is a good thing, theorizing that it could lead to a utopian society where there is no longer a use for the laborer and rather people can spend their time whatever they may please. This theory make work in the long run but in the short-run, his idea is dystopian, the root of unemployment and the horrible exploitation of workers. Besides for the takeover of machines in factories however, Smith also argues how the division of labor is resulting in the exploitation of workers, by undervaluing their work. For example, Smith’s example of the division of labor for the production of a nail shows how workers values are quickly being diminished. There’s no longer one worker making an entire nail, a relatively difficult skill. Instead, there are four or five workers making various pieces of the nail, such as one making the head of the nail and another shaping the tip of the nail. As a result of the divisions of labor, the laborers value is no longer there. The value of the laborer shaping the point of the nail is minimal, making it easy for the …show more content…
The exploitation of workers is very common, especially by big US corporations such as Walmart and McDonalds, or Nike and Apple overseas. Walmart for example, is notorious for paying their workers the bare minimum which in the US is no longer enough to subsist for the minimum wage has not adjusted to economic growth and inflation. With Walmart especially, they have made the news for how badly they exploit their workers by mistreating older employees, giving them poor health benefits and severely underutilizing their knowledge potentials. Through this exploitation, every member of the Walton family(owners of Walmart) has made their way high onto the Forbes 400 Billionaires list. But it’s not just Walmart that does this, around half of the US population is employed by large corporations who’s only goals are to turn a profit at the expense of their workers. Marx would roll over in his grave if he saw how badly and how many exploited workers there are under these mega corporations. Profit is not at all natural, it is the result of severe