- 06 Feb 2017 11:11
#14772845
In basic economics, as I’m sure you all know, there are 4 key factors of production, land, labour, enterprise, and capital. Broadly speaking, the different social classes control these factors; the lower classes control the labour; the middle classes control the enterprise and the upper classes control the land and capital. However, in the past few decades’ improvements in technology have been automating manual jobs which reduces the need for labour but increases the need for capital. This means that the stake which the lower classes have in production is reducing and so, naturally, their stake of the profits will reduce. However, the requirement for capital is also increased, thus increasing the stake of the profits that the upper classes have. With this in mind, is it any surprise that there is increasing social inequality? If the poor have less to give to production and the rich have more to give then the rich will get richer and poor will get poorer.
What are peoples thoughts on this?
What are peoples thoughts on this?