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Debunking “Capitalism Ends Poverty”

Proponents of capitalism regularly claim that “capitalism ends poverty." However, the truth and reality do not back up their claim.
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Capitalism does not “end poverty”. That has never been the goal of capitalism and it will never be achieved by capitalism. Capitalism is an economic system wherein the profit-motive drives the capitalist class who possesses the privately owned means of production. It does not produce or allocate according to the needs and wants of humanity, but instead profit and profitability. The goal is to profit, expand, make greater profits, expand more, profit even more, etc. At this point in capitalist development, we have reached a point where there is enough food produced in order to feed the entire world and have leftovers. However, as noted before, hundreds of millions of people starve and millions die every year. It is because it is more profitable for the capitalist to destroy edible food than it is to end hunger. There is a lot of money that goes into boxing up food properly, transporting it safely, maintaining it, distributing it, etc to people who cannot replace that cost that it would take, and the capitalist will lose more money doing that than he will if he just throws it away. Therefore he destroys food and allows people to starve, in order to maximize profits. It is not that it’s impossible by means such as logistics, it’s about the profit incentive. The capitalist gets richer and secures greater profits because he condemns people to starve, to go without medicine (such as insulin), to go without safe housing, etc — in effect, capitalism condemns billions to poverty because it is profitable.

Michael Parenti explains how imperialism benefits the imperial countries economically, propping up their economies by exporting capital to imperialized countries with relatively cheap access to labor markets, with plentiful resources, etc, and extracting wealth from these oppressed countries.

This article was originally published in Greanville Post.

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