The start of the Haves and the Have-Nots

Karl Marx (1818-1883) was a socialist reformer, known as the Father of Communism. According to Karl Marx, more workers at subsistence wages bring more profit through cheap labour. Therefore, capitalists asked workers to bring their wives and children to work for them. By exploiting them, they could generate more profits. More workers mean more people rather than less people. More people mean new markets to sell produce.

Even today, for example, restaurant owners employ students for low wages and extract enormous profits. Karl Marx called it stealing, because capitalists do not give them a better reward for their hard work.

Therefore, population was an incentive rather than dis-incentive, however, poorer households due to their subsistence wages became the cause of having more children to work in factories to earn more.

Lack of birth control was also a factor. Child labour which we see in most developing countries was found to be in England and other European countries, because, capitalism, originated first in European countries. The business class of developing countries – including the next-door local shopkeepers are capitalists: the private owners of their shops and factories employ people at lowest wages, including children for various tasks.

In all developing countries, we can observe capitalism. According to ILO (International Labour Organization), in 2008 there were approximately 215 million child labourers, aged 5-17 in the world. This is due to family poverty. Children assist to boost their parent’s income. Businesses get cheap labour. The other form of cheap labour, which businesses get, is forced labour.

Forced labour takes different forms, including debt bondage, trafficking, and other forms of modern slavery. The victims are often the most vulnerable – women and girls forced into prostitution, migrants trapped in debt bondage, and sweatshop or farm workers kept there by illegal means and paid little or nothing. Almost 21 million people are victims of forced labour – 11.4 million women and girls and 9.5 million men and boys.

Domestic work, agriculture, construction, manufacturing, and entertainment are among the sectors most concerned. Migrant workers and indigenous people are particularly vulnerable to forced labour. See: Marking progress against child labour – Global estimates and trends 2000-2012 (ILO-IPEC, 2013)

Figure 1: The start of the Haves and the Have Nots

Marx sees the society divided into two classes

“Haves – Capitalists” and “Have-nots – workers” which he sees as the cause of misery, deprivation, and poverty of “Have-nots.” By exploiting their workers who work in their factories, capitalists reaped higher profits by giving them subsistence wages – wages just to survive. The growth process of capitalists (businesses) took place in the way as it is happening today, but the wellbeing of commoners never took place, because capitalists (businesses) increase their surplus value by exploiting their workers to the maximum extent.

This has resulted in the low paid workers category living on means that cannot ensure them daily needs, which also includes fruit and vegetables. The World Bank suggests, in 2012, 896 million people lived on less than $1.90 a day. Globally, more than 162 million children remain undernourished (The Millennium Development Report 2014).

How to increase the income of the low-paid workers is a big question to answer

One way is to give less money to those paid more than what is required. This extra money can be used to raise the wages of the low paid workers. The other way, is for all countries to print more paper notes to pay more to low paid workers. It is much easier to print more notes than to grow fruit and vegetables. If we cannot justify paying more to low paid workers because they have limited education and training, printing notes and giving them to them to let them buy fruit and vegetables, education and medication is another way. This way, children will not have to work; they go to school and higher education.

All countries will be able to ensure that their citizens do not sleep without food, or lack clothing and shelter. You must have heard that $80,000 per annum is a good income to live a better life in Australia. The per capita income of Australia is $37,000 per annum. How can you live practically on $37,000 per annum in Australia? From where do we get them this extra $43,000?

That is why both parents try finding work

There are millions of poor families in many countries; all have to take responsibilities to look after their family members, and citizens, and the state have a role to play. We need to redistribute income also through jobs – a quick reshuffling of employment and better income of those sitting on meagre income and reducing income and pensions at a higher level. Why are Vice-Chancellors in Australia reducing the number of associate professors and professors? The answer is to use money appropriately in further fruitful research and better teaching methods. My answer is; this way, Australia shall be able to use this extra money to raise the income of the low-paid workers living in Australia. It is a rationale economics – the economics of welfare. Imagine; if it happens all over world, there would be no poor.

The presence of unemployment

As time progressed, capitalists began competing with one another to maximise their individual profits by stealing away workers from other capitalist by offering them a higher wage to those workers who were important in raising more produce. When industrial revolution took place, labour got replaced with machinery, thereby, leading to unemployment. This we can see today too. Marx called this “Reserve Army” of the unemployed, which helped to keep wages down and countered the tendency of profits to fall. Now days, car manufacturing is done in developing countries. Australian authors getting their books printed in India. The story of all countries is nearly same – more “have-nots” and few “haves”.

Population is a blessing in disguise: we need to use it appropriately

The lenient immigration policy of developed nations, including England, Australia, Canada, USA, and New Zealand has helped enormously people of all countries including Italy, Germany, Japan, Greece, China, India, Pakistan, and Bangladesh to immigrate and earn their living by contributing in nation building activity. This facilitated not only the growth and development of migrants living in foreign countries, but also facilitated the developmental process in their home countries by sending remittances from abroad.

From capitalism to welfare
Prof. Adam Smith (1723-1790), the Father of Economics advocates: we all have self-interests in doing things, but we have a moral obligation towards each other, also in the business activity. For instance, Prof. Smith was concerned about economic inequalities and suggested imposing progressive taxes to redistribute income to the poorer households by the way of transfer payments.

In countries like India, China, Pakistan, and Bangladesh there are relatively greater risks when a person loses his/her job compared to countries like England, America, Australia and Canada because governments of these countries support them with social security like sustained unemployment allowances with childcare allowances, health and travelling, electricity and water supply concessions. The government of the these nations understands that, any person can face unemployment, any time, in any country due to any reason, therefore, some government financial support is important. However, we must note that, people on social security cannot enjoy the fruits of high income compared to when are fully employed. A fully employed person earns a better income to support his family, enjoy further promotions with pay rise, and enhance better health by affording better health care and social status compared to people on dole money. Capitalism, is also, seen today in a different form – also towards a welfare state – the welfare of one who is looking for work?

All economic systems – capitalism, socialism, and mixed economy, have existed simultaneously, yet, hunger and deprivation remained unresolved.

We might blame economic systems, but there are limits to planning and using resources appropriately for the betterment of the society. We need to have a better allocation of resources towards humanity. This might be far away from realities, but we may keep trying to overcome poverty and hunger – grim realities of life in all countries. Any economic system; capitalism, socialism, or mixed economy is good, provided we see that our fellow citizens have enough money to buy goods and services for them and their family members.

All human beings require the most desirable commodities – food, clothing, shelter, education, health, and healthy leisure – Prof. Adam Smith’s Moral Obligation towards each other. Prof. J.M Keynes (1883-1946) advocated, that, all countries must facilitate production by investing to create full employment, generate revenue through taxes and also conduct transfer payments for people in need. We must ensure that, some, or members of the poorer households get work to help them live a better life. We are for each other. All of us have created a society where we all live together and facilitate socio-economic progress together.

At the end of the day, extra money in the form of big salaries go into savings, but there is a need to give sufficient amount of money to all the low paid workers, so that they could also meet their daily needs respectfully and save. My children look at me for their expenses. I look at my country for my earnings.