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Exploitation
From Wikipedia
In political economy, economics, and sociology, exploitation refers to an economic or social relationship in which some organization or institution treats human beings as a resource with little or no consideration for their well-being. To social theorists, "exploitation" usually does not include simple theft, which is not a persistent economic or social relationship; nor do they refer to a relationship between individuals, as when a pimp "exploits" his prostitute. Rather, exploitation involves some persistent aspect of the socioeconomic system, an institution. In ethical terms, on the other hand, "exploitation" to any treatment of a human being, or any living creature, as a means to an end, i.e., as an object. Political economy was the original term for the study of production and the relationships of buying and selling and their relationship to laws, customs and government. ... Economics (deriving from the Greek words οίκω [okos], house, and νÎμω [nemo], rules hence household management) is the social science that studies the allocation of scarce resources to satisfy unlimited wants. ... Social interactions of people and their consequences are the subject of sociology studies. ... Resources comprise the base material for an activity or industry: See resource (economics) for the term as used in economics See human capital for human resources (HR) and innovation See natural resources for material matter See resource (computer science) for the computer science meaning of resources This is a disambiguation... Institutions are organizations, or mechanisms of social structure, governing the behavior of two or more individuals. ... Ethics is a general term for what is often described as the science (study) of morality. In philosophy, ethical behavior is that which is good or right. ...
There are two major types of exploitation theory:
- Organizational or "micro-level" exploitation: in the broad tradition of liberal economic thinking, most theory of exploitation centers on the market power of economic organizations within a market setting. Some neoclassical theory points to exploitation not based on market power.
- Structural or "macro-level" exploitation: "new liberal" theories focus on exploitation by large sections of society even (or especially) in the context of free markets. Going off the liberal spectrum, Marxist theory points to the entire capitalist class as an exploitative entity, and to capitalism as a system based on exploitation.
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Liberalism is a political current embracing several historical and present-day ideologies that claim defense of individual liberty as the purpose of government. ... In economics, market power (sometimes called monopoly power) is a market failure which occurs when one or more of the participants has the ability to influence the price or other outcomes in some general or specialized market. ... In political economy, economics, and sociology, exploitation refers to an economic or social relationship in which some organization or institution treats human beings as a resource with little or no consideration for their well-being. ... In political economy, economics, and sociology, exploitation refers to an economic or social relationship in which some organization or institution treats human beings as a resource with little or no consideration for their well-being. ... A free market is an idealized market, where all economic decisions and actions by individuals regarding transfer of money, goods, and services are voluntary, and are therefore devoid of coercion and theft (some definitions of coercion are inclusive of theft). Colloquially and loosely, a free market economy is an economy... In political economy, economics, and sociology, exploitation refers to an economic or social relationship in which some organization or institution treats human beings as a resource with little or no consideration for their well-being. ... Bourgeois at the end of the thirteenth century Bourgeois redirects here; for the composer with that name, see Derek Bourgeois. ... Capitalism has been defined in various ways (see q:Capitalism). ...
Organizational exploitation
The focus of most assertions about the existence of exploitation is the socio-economic phenomenon where people trade their labor or allegiance to a powerful entity, such as the state, a corporation or any other private company, or a trade union. Socioeconomics is the study of the social and economic impacts of any product or service offering, market intervention or other activity on an economy as a whole and on the companies, organization and individuals who are its main economic actors. ... A state is an organized political community occupying a definite territory, having an organized government, and possessing internal and external sovereignty. ... A corporation is a legal entity (distinct from a natural person) that often has similar rights in law to those of a Civil law systems may refer to corporations as moral persons; they may also go by the name AS (anonymous society) or something similar, depending on language (see below). ... A private company is a company that is not a public company. ... A union (labor union in American English; trade union in British English; either labour union or trade union in Canadian English) is a group of workers who act collectively to address common issues. ...
In this line of thought, there are two primary viewpoints on the reality of exploitation in capitalism: Capitalism has been defined in various ways (see q:Capitalism). ...
- organizational exploitation is an inherent feature of capitalism.
- organizational exploitation cannot coexist with capitalism. (in the absence of criminal activity)
On the theoretical level, these two different viewpoints are diametrically opposed, and irreconcilable; much of this article reflects that fact, by presenting the two opposite viewpoints on the various issues. Also, since many people see "capitalism" or "free markets" as existing in some parts of the world but not others, it can be argued that both viewpoints may be valid in different places at different times.
Though this obviously involves over-simplification, the first view will be termed the "anti-capitalist" theory while the second view will be termed the "pro-capitalist" theory.
"Anti-capitalist" theory
The anti-capitalist school, e.g., social-liberals, progressives, populists, anarchists, and Marxists, argue that — even in the absence of physical compulsion to work (slavery or serfdom) — there are inherent power imbalances between some or all employers, on the one hand, and some or all workers, on the other. This line of thought goes back at least as far as Adam Smith's Wealth of Nations. He wrote: New liberalism (also called modern liberalism or social liberalism) is a stance in political economy that argues for extensive government regulation and partial intervention in the economy, though much less than what is advocated by social democrats. ... Progressivism or political progressivism is any of several historically related political philosophies or political ideologies. ... Populism is a political philosophy or rhetorical style that holds that the common person is oppressed by the elite in society, and that the instruments of the State need to be grasped from this self-serving elite and used for the benefit and advancement of the people as a whole. ... This article describes a range of political philosophies that oppose the state and capitalism. ... Marxism is the political practice and social theory based on the works of Karl Marx, a 19th century German philosopher, economist, journalist, and revolutionary, along with Friedrich Engels. ... A monument celebrating the emancipation of slaves in the British Empire in 1834, erected in Victoria Tower Gardens, Millbank, Westminster, London Look up Slavery in Wiktionary, the free dictionary Slavery is a condition of control over a person against their will, enforced by violence or other forms of coercion. ... Costumes of Slaves or Serfs, from the Sixth to the Twelfth Centuries, collected by H. de Vielcastel, from original Documents in the great Libraries of Europe. ...
- "The masters [i.e., employers], being fewer in number, can combine much more easily; and the law, besides, authorises, or at least does not prohibit their combinations, while it prohibits those of the workmen. We have no acts of parliament against combining to lower the price of work; but many against combining to raise it. In all such disputes the masters can hold out much longer. A landlord, a farmer, a master manufacturer, or merchant, though they did not employ a single workman, could generally live a year or two upon the stocks which they have already acquired. Many workmen could not subsist a week, few could subsist a month, and scarce any a year without employment. In the long-run the workman may be as necessary to his master as his master is to him, but the necessity is not so immediate." (volume I, ch. 8, paragraph 12)
The use of the word "exploitation" goes far beyond Smith. It is a characterisation of the work for pay system (wage labor), when it is applied with cruelty, or with compulsion, or on terms that are objectionable to the employee. Besides notions of "corporate exploitation" (developed below), neoclassical theories of exploitation follow in this tradition. Furthermore, Marxist theories of exploitation are probably the best known of this category. They are also discussed later in this article. In political economy, economics, and sociology, exploitation refers to an economic or social relationship in which some organization or institution treats human beings as a resource with little or no consideration for their well-being. ... In political economy, economics, and sociology, exploitation refers to an economic or social relationship in which some organization or institution treats human beings as a resource with little or no consideration for their well-being. ...
"Pro-capitalist" theory
The pro-capitalist school, e.g., conservatives, classical liberals, libertarians, Austrian-school economists, Chicago-school economists and anarcho-capitalists, argue that — absent physical compulsion — the only way that an employer may hire a worker is by offering a basket of goods (wages, working conditions, and benefits) sufficient to "bribe" him or her away from existing work options and leisure, and that therefore any employment relation that does not involve physical force or threats is – ipso facto – not exploitative. They argue that any exchange in the absence of physical compulsion is voluntary, and therefore both sides gain from it. Conservatism or political conservatism is any of several historically related political philosophies or political ideologies. ... Liberalism is a political current embracing several historical and present-day ideologies that claim defense of individual liberty as the purpose of government. ... This article deals with the libertarianism as defined in America and several other nations. ... The Austrian School is a school of economic thought which rejects opposing economists reliance on methods used in natural science for the study of human action, and instead bases its formalism of economics on relationships through logic or introspection called praxeology. ... The Chicago School is a loose, unofficial group of economists that are generally associated with neoclassical price theory and free market libertarianism. ... Anarcho-capitalism is a view that regards all forms of the state as unnecessary and harmful, particularly in matters of justice and self-defense, while being highly supportive of private property. ...
Further, the spread of free market competition is seen as destroying any existing market power over individuals. If exploitation of this sort is successful, the exploiters will earn excess (above-normal) profits. This in turn attracts entry by entrepreneurs in search of profits. Such competition (assuming it can gain a foothold) is believed to end the market power, the exploitation, and the profits. Furthermore, the pro-capitalists argue that technological change can also abolish monopoly and monopsonistic power, as with the shrinkage of the Western Union corporation and its power. A free market is an idealized market, where all economic decisions and actions by individuals regarding transfer of money, goods, and services are voluntary, and are therefore devoid of coercion and theft (some definitions of coercion are inclusive of theft). Colloquially and loosely, a free market economy is an economy...
Technology (Gr. ...
In economics, bargaining power refers to the ability to influence the setting of prices or (nominal) wages, usually arising from some sort of monopoly or monopsony position -- or a non-equilibrium situation in the market. ...
Western Union is an American financial services and communications company. ...
Organizational exploitation in developing nations
The empirical existence of organizational exploitation depends on the social context. The developing nations (commonly called "third-world countries" or "poor countries") are the focus of much debate over the issue of exploitation, particularly in the context of the global economy. A developing country is a country with low average income compared to the world average. ...
To the anti-capitalist viewpoint, the main kind of organizational exploitation is "corporate exploitation", which is seen as prevailing in the "third world". This school of thought points to cases of corporations such as Nike and The Gap, which are alleged by some to use child labor and sweatshops in order to manufacture their products cheaply in developing nations, paying their workers wages far lower than those that prevail in developed nations (where the products are sold). This, it is argued, is insufficient to allow workers to attain the local subsistence standard of living if working hours common in the first world are observed, so that working hours much longer than in the first world are necessary. It is also argued that work conditions in these developing-world factories are much less safe and much more unhealthy than in the first world. For example, observers point to cases where employees were unable to escape factories burning down — and thus dying — because of locked doors, a common signal that sweatshop conditions exist. For the Jamaican reggae band, see Third World (band). ...
The Nike swoosh logo Nike, Inc. ...
This article is about the clothing retailer. ...
Child labour or labor is the phenomenon of children in employment. ...
A sweatshop is a factory, where people work for a very small wage, producing a variety of products such as clothes, toys, shoes, and other consumer goods. ...
A developing country is a country with low average income compared to the world average. ...
A developed country is a country that has achieved (currently or historically) a high degree of industrialization, and which enjoys the higher standards of living which wealth and technology make possible. ...
The terms First World, Second World, and Third World were used to divide the nations of Earth into three broad categories. ...
The pro-capitalist faction, as well as corporate spokespeople, argue that, in the absence of compulsion, the only way that corporations are able to secure adequate supplies of labor is to offer wages and benefits superior to preexisting options, and that the presence of workers in corporate factories indicates that the factories present options which are seen as better — by the workers themselves — than the other options available to them (see principle of revealed preference). Pioneered by American economist Paul Samuelson (1915- ), revealed preference theory is a method by which it is possible to discern the best possible option on the basis of consumer behaviour. ...
The anti-capitalist viewpoint responds that this is disingenuous, as the companies are in fact exploiting people by the terms of unequal human standards (applying lower standards to their "third world" workers than to their "first world" ones). Furthermore, the argument goes, if people choose to work for low wages and in unsafe conditions because it is their only alternative to starvation or scavenging from garbage dumps (the "preexisting options"), this cannot be seen as any kind of "free choice" on their part. This viewpoint also argues that if a company intends to sell its products in the first world, it should pay its workers by first world standards.
Anti-capitalists also point to secondary effects such as the dumping of government-subsidized corn on developing world markets which forces subsistence farmers off of their lands, sending them into the cities or across borders in order to survive.
More generally, some sort of international government regulation of transnational corporations is called for, such as the enforcement of the International Labor Organization's labor standards. A multinational corporation (MNC) or transnational corporation (TNC) is one that spans multiple nations; these corporations are often very large. ...
For other meanings of the ILO abbreviation, see ILO (disambiguation). ...
The pro-capitalist viewpoint responds that the workers do have other options besides starving: all of the options that existed before the corporations arrived, and which continue to exist (e.g. if workers feel exploited soldering motherboards, or sewing jackets in a factory, at given levels of salary, safety, etc., they are free to return to farming, fishing, or other traditional occupations). This ignores, of course, the way in which the commercialization of agriculture and other traditional sectors has led to the expulsion of much labor from these sectors, and the fact that increasing numbers of people are driven to the cities by the population boom, so that the option of returning to previous conditions is no longer available.
In the pro-capitalist view, the promotion of a greater scope for markets and competition (as advocated by the International Monetary Fund and World Bank) would solve any problem of corporate "exploitation". The argument that first-world wages should be paid to third-world workers is often countered by pointing out that if such wages were mandated, the corporations in question would have no incentives to export factories to the developing world, and would keep the factories in the developed world, which would deny third-world workers the option of working for these corporations. The anti-capitalist school replies in one of two ways: The first answer is that corporate incentives could be preserved by paying third-world workers wages that are not exactly the same as the first-world standard, but are a sizable fraction of it (e.g. 80%). The second, and perhaps more common, answer is that moving jobs to the third-world is a bad thing in the first place, and it would be good to remove incentives for such behaviour. The flag of the International Monetary Fund (IMF) The International Monetary Fund (IMF) is the international organization entrusted with overseeing the global financial system by monitoring foreign exchange rates and balance of payments, as well as offering technical and financial assistance when asked. ...
Logo of the World Bank The International Bank for Reconstruction and Development (IBRD, in Romance languages: BIRD), better known as the World Bank, is an international organization whose original mission was to finance the reconstruction of nations devastated by WWII. Now, its mission has expanded to fight poverty by means...
The anti-capitalist viewpoint also argues that corporate wealth can be a strong incentive in governments with weak human standards and rampant corruption, to persuade such governments to give various privileges to various corporations. Thus, the case is often made that a corporation shares complicity in human rights abuses when it enters into a working partnership with a tyrannical and abusive political government, to exploit the people for their labor. Such partnerships have involved the suppression of independent labor unions, the military suppression of strikes, and the torture of union activists. Wealth usually refers to money and property. ...
Theory
Some theories of exploitation (Marxian, new liberal) are structural, while others are organizational (neoclassical). Meanwhile, the pro-market school sees not only organizational exploitation by labor unions but also structural exploitation by the state.
Pro-market theories
The pro-market school postulates that exploitation can only exist where physical force is used as a tool of coercion. They deny that inbalances of power, concentration of wealth, unequal knowledge or lack of any alternatives for the workers can lead to exploitation. Following this train of thought, they argue that because only criminals and states arrogate to themselves the use of force as a tool of coercion, then only criminals, governments, and states are exploitative (in their view, labor unions are either criminal or sponsored by the state). The pro-market advocates claim that a state is a monopoly run by a special interest group, regularly interfering with markets and other processes which they see as free and natural, thus being a "parasite" on society. Their proposed solution is to move to a minimal state and absolute free market. A state is an organized political community occupying a definite territory, having an organized government, and possessing internal and external sovereignty. ... In economics, a monopoly (from the Greek monos, one + polein, to sell) is defined as a persistent market situation where there is only one provider of a kind of product or service. ... A special interest is a person or political organisation established to influence governmental policy or legislators in a specific area of policy. ... In civics, Minarchism, sometimes called minimal statism, is the view that government should be as small as possible. ... A free market is an idealized market, where all economic decisions and actions by individuals regarding transfer of money, goods, and services are voluntary, and are therefore devoid of coercion and theft (some definitions of coercion are inclusive of theft). Colloquially and loosely, a free market economy is an economy...
Strangely, there is sometimes convergence between "pro-capitalist" and "anti-capitalist" thinkers. The view that the state is an exploitative organization run by or for a special-interest group is shared by Marxists and anarchists (also known as libertarian socialists). They see the state as being operated either for the capitalist class or in coalition with it, while capitalists are seen as a special interest group, exploiting the working class both through economic means and through their control of the state. Marxism is the political practice and social theory based on the works of Karl Marx, a 19th century German philosopher, economist, journalist, and revolutionary, along with Friedrich Engels. ...
Anarchists can refer to one of two things: The movie Anarchists Supporters of the principles of anarchism A List_of_anarchists This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ...
Libertarian socialism is any one of a group of political philosophies dedicated to opposing coercive forms of authority and social hierarchy, in particular the institutions of capitalism and the state. ...
In economics, a capitalist is someone who owns capital, presumably within the economic system of capitalism. ...
A special interest is a person or political organisation established to influence governmental policy or legislators in a specific area of policy. ...
The term working class is used to denote a social class. ...
Marxist theory
In Marxist theory, corporate exploitation is usually called "superexploitation" — exploitation that goes beyond the normal standards of exploitation prevalent in capitalist society. While other theories emphasize the exploitation of one individual by an organization, the Marxist theory concerns the exploitation of an entire segment or class of society by another. This kind of exploitation is seen as being an inherent feature and key element of capitalism and free markets. In fact, in Das Kapital, Karl Marx typically assumed the existence of purely competitive markets. In general, it is argued that the greater the "freedom" of the market, the greater the exploitation. The perceived problem is with the structural context in which free markets operate (detailed below). The proposed solution is the abolition of capitalism and its replacement by a better, non-exploitative, system of production and distribution (first socialism, and then, after a certain period of time, communism). Marxism is the political practice and social theory based on the works of Karl Marx, a 19th century philosopher, economist, journalist, and revolutionary, along with Friedrich Engels. ... Marxism is the political practice and social theory based on the works of Karl Marx, a 19th century philosopher, economist, journalist, and revolutionary, along with Friedrich Engels. ... In economics, a capitalist is someone who owns capital, presumably within the economic system of capitalism. ... The term class, when used by itself, has several meanings in English. ... Das Kapital (Capital) is a very large treatise of political economy written by Karl Marx. ... Karl Marx Karl Marx (May 5, 1818 Trier, Germany – March 14, 1883 London, UK) was an influential German philosopher, political economist, and revolutionary organizer of the International Workingmens Association. ... The color red and particularly the red flag are traditional symbols of Socialism. ... This article is about communism as a form of society built around a gift economy, as an ideology that advocates that form of society, and as a popular movement. ...
In the Marxist view, "normal" exploitation is based in three structural characteristics of capitalist society:
- the ownership of the means of production by a small minority in society, the capitalists;
- the inability of non-property-owners (the workers, proletarians) to survive without selling their labor-time to the capitalists (in other words, without being employed as wage laborers);
- the state, which uses its strength to protect the unequal distribution of power and property in society.
// General Means of production generally refers to productive assets which are inputs in a production process. ... A state is an organized political community occupying a definite territory, having an organized government, and possessing internal and external sovereignty. ...
New liberal theories
For others, i.e., a minority of "new liberals", exploitation naturally coexists with free markets. As in Marxist theory, the problem is structural rather than organizational and can coexist with free markets: given their special position in society (controlling an important asset), an interest group can shift the distribution of income in its direction, impoverishing the rest, even though their role serves no reasonable purpose. While Henry George pointed to land-owners, John Maynard Keynes saw rentiers (non-working owners of financial wealth) as fitting this picture. The first receive land-rent while the second receive interest, even though, according to the proponents of this theory, they contribute nothing to society. They merely own a certain asset and have the ability to make money from that asset without actually doing any work themselves. While George argued for a "single tax" on land-rent to solve this problem, Keynes hoped that interest rates could be driven to zero. New liberalism (also called modern liberalism or social liberalism) is a stance in political economy that argues for extensive government regulation and partial intervention in the economy, though much less than what is advocated by social democrats. ... In economic theory, perfect competition is a market form in which no producer or consumer has the power to influence prices in the market. ... In economic theory, perfect competition is a market form in which no producer or consumer has the power to influence prices in the market. ... A special interest is a person, group, or organization attempting to influence legislators or other public officials in favor of one particular interest or issue. ... Henry George (September 2, 1839 – October 29, 1897) was an American political economist, and the most influential proponent of the Single Tax on land. ... John Maynard Keynes John Maynard Keynes, 1st Baron Keynes of Tilton (pronounced Kaynes) (June 5, 1883 – April 21, 1946) was an English economist, whose radical ideas had a major impact on modern economic and political theory as well as Franklin D. Roosevelts New Deal. ...
In some ways, these theories are similar to the Marxist one discussed above. However, they deal with the power and influence of special interests in society (and within the capitalist class) rather than dealing with a structural difference in class position of the Marxian sort. Further, while Marx saw exploitation as raising the total amount of production in capitalist society, in these theories exploitation represents a form of waste or inefficiency, hurting growth under capitalism. Therefore, according to this view, abolishing rent or interest would make capitalism operate better. Marxism is the political practice and social theory based on the works of Karl Marx, a 19th century philosopher, economist, journalist, and revolutionary, along with Friedrich Engels. ...
A special interest is a person, group, or organization attempting to influence legislators or other public officials in favor of one particular interest or issue. ...
The term class, when used by itself, has several meanings in English. ...
The term inefficiency has several meanings depending on the context in which its used: Economic inefficiency refers to a situation where we could be doing a better job, i. ...
External Links
- Third World Workers Need Western Jobs by Radley Balko
- Stanford Encyclopedia of Philosophy entry
