Economics’ theorist, Adam smith theorized that in order for the society to prosper, the market system has to be left alone with minimal intervention by the authorities. This way, people have the freedom to pursue their wealth; no longer will they be bounded by the authorities.
Years later, the effect of it is very much evident in the world. In the previous write up, it has been clearly demonstrated how such theory has brought catastrophic results to the world: The rich getting richer, the poor getting poorer( or just stayed poor). Smith also mentioned about the fact that in order for the economy to prosper, it has to have a division of labor. This largely agreed to the industrial revolution where craftsmanship become obsolete. Rather than having one person taking 10 days to make one product, industrialist rather have 10 person making 20 products in let’s say on day. This new found efficiency got farmers(or those in the agrarian sector) flocking to the cities in search for a better life.
What the farmers got was a rude shock. Long hours, monotonous work and terrible working conditions. This is simply isn’t something that would constitute as a better life if compared to what they had. These farmers-turned-industrial workers were ver expendable in the eyes of their employers. At any time, if given the right conditions(if they decide to demand for better wages or working conditions), they would simply be sacked and a replacement would be found almost immediately. This was due to the fact of high unemployment rate. At the first instance that an employment opportunity opened up to them, it would be snatched in almost a blink of an eye. This was the time of industrial revolution.
Things are not much different these days. Capitalist are still on the search of yielding huge profits for themselves. It does not get circulated among the society in contrary to Smith’s theory. Instead, the capitalist would find new means of creating more money for themselves. How would that be achieved? Firstly, these money-hungry mongrels would scan for a country that would provide very cheap labours. Developing countries would be the best bet for them. Then, using cheap labour, they would produce products that would benefit themselves and the society that they came from at very high prices. However, once the labour in that country gets expensive, they will just jump to another country that will offer them much cheaper labour than the previous country which they had their manufacturing plant in.
This is very evident in a country like ours. Companies which used to have manufacturing plants in our country island (which contributed to our economic growth) have shifted to countries like India and China when the wages that the labourers here were getting were demanded to be increased. Such is the cruelty of Multinational Companies and the Free Trade Agreement.
If that was not bad enough, these companies even employed child labourers to manufacture their products. Children in Pakistan are stiching the soccer balls that loyal consumers of brands like Nike, are kick about on soccer fields. Furthermore, these children are paid so little but yet, they were put to work under such terrible conditions. MNCs take advantage of these children because poverty had driven these children to work to support their family. They are paid so little yet they are not aware of it. Such is the innocence of the child. An innocence that is being raped.
Adam Smith did point out that his theory might be catastrophic as capitalist take advantage of the masses if kept unchecked. Marx amplified this view in his book. Yet, there is little being done about such a phenomenan. If such an issue was to be resolved, like wealth, enough simply isnt enough. More has to be done about it.
