Inequality is a natural outcome of capitalism from "summary" of 23 Things They Don't Tell You About Capitalism by Ha-Joon Chang
Capitalism is often defended on the grounds that it creates wealth and promotes prosperity, but what is often overlooked is the fact that it also generates inequality. This is not a mere coincidence or unintended consequence, but rather a natural outcome of how capitalism operates. In a capitalist system, wealth tends to concentrate in the hands of a few, while the majority of the population struggles to make ends meet. One reason for this is that capitalism rewards certain skills and attributes more than others. Those who possess valuable skills or talents are able to command higher wages and accumulate wealth, while those with less marketable skills are left behind. This leads to a widening gap between the rich and the poor, as those at the top continue to amass wealth at the expense of those at the bottom. Another factor that contributes to inequality in capitalism is the unequal distribution of resources. Those who already have wealth and power are better positioned to take advantage of economic opportunities, while those who are starting from a disadvantaged position face greater barriers to success. This perpetuates a cycle of inequality, as the gap between the haves and the have-nots continues to grow over time. Furthermore, capitalism is driven by competition, which can also exacerbate inequality. In a competitive market, those who are able to outperform their competitors can gain a larger share of the market and reap greater rewards. This can lead to the consolidation of wealth and power in the hands of a few dominant players, while smaller businesses and individuals struggle to compete.- It is clear that inequality is not just a byproduct of capitalism, but an inherent feature of the system. As long as capitalism continues to prioritize profit over people and competition over cooperation, inequality will remain a fundamental aspect of our economic system. It is essential to recognize this reality in order to address the root causes of inequality and create a more equitable society.
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