Sake Etiek
1) Is Wal-Mart’s rapid rise to retail dominance a positive or negative economic development?
A) Karl Marx
Karl Marx’s theory is based on the surplus value (Karl Marx 's theories? .2008). According to Karl Marx capitalists are able to exploit workers(doing involuntarily labour as a mere means to an end and not as an end in itself) because they only have labour to offer and this could be their only source of income, thus resulting in workers getting paid less than value created by their labour. Through these exploitations capitalists are able to increase their profits. This will cause workers to become rebellious and in result refusal of being further exploited (Shaw.2011.149) Workers will then create a system that will fully benefit them all (ibid). These capitalists system contradicts Marx’s forecast. Even though it has tempered greedy, exploitive dispositions of early capitalism, these systems cannot prevent the alienation of workers caused by their unfulfilling work (ibid). The unequal positions of capitalist’s where workers must work for someone else thus satisfying others needs and leads to them feeling exploited(ibid).
Wal-Mart pays low wages and does not provide health insurance and other benefits for its employees (ibid), and by holding down on these spending, lowers labour costs. Workers thus have no benefits of being an employee of Wal-Mart emphasises the fact that Wal-Mart is exploiting its workers. Wal-Mart is also the cause of many businesses rivals closing down and resulting in unemployment. The unemployed workers will then cause an increase in demand in their search for employment (which Wal-Mart can provide them), thus causing downward pressure on Wal-Mart’s wages enabling them to maximize profit and will hire workers at lower wages.
Based on the above mentioned arguments, according to Karl Marx, Wal-Mart’s rapid rise to retail dominance would lead to negative economic development. B) Adam Smith
Adam Smith argued that if a market is
A) Karl Marx
Karl Marx’s theory is based on the surplus value (Karl Marx 's theories? .2008). According to Karl Marx capitalists are able to exploit workers(doing involuntarily labour as a mere means to an end and not as an end in itself) because they only have labour to offer and this could be their only source of income, thus resulting in workers getting paid less than value created by their labour. Through these exploitations capitalists are able to increase their profits. This will cause workers to become rebellious and in result refusal of being further exploited (Shaw.2011.149) Workers will then create a system that will fully benefit them all (ibid). These capitalists system contradicts Marx’s forecast. Even though it has tempered greedy, exploitive dispositions of early capitalism, these systems cannot prevent the alienation of workers caused by their unfulfilling work (ibid). The unequal positions of capitalist’s where workers must work for someone else thus satisfying others needs and leads to them feeling exploited(ibid).
Wal-Mart pays low wages and does not provide health insurance and other benefits for its employees (ibid), and by holding down on these spending, lowers labour costs. Workers thus have no benefits of being an employee of Wal-Mart emphasises the fact that Wal-Mart is exploiting its workers. Wal-Mart is also the cause of many businesses rivals closing down and resulting in unemployment. The unemployed workers will then cause an increase in demand in their search for employment (which Wal-Mart can provide them), thus causing downward pressure on Wal-Mart’s wages enabling them to maximize profit and will hire workers at lower wages.
Based on the above mentioned arguments, according to Karl Marx, Wal-Mart’s rapid rise to retail dominance would lead to negative economic development. B) Adam Smith
Adam Smith argued that if a market is
Bibliography: An Inquiry into the Nature and Causes of the Wealth of Nations (1776) McGregor BFA, 2011 Parkin, M. 2011.Microeconomics: Demand and Supply. University of Western Ontario. Pearson Education. Shaw, W H. 2011. Business Ethics. Boston. Wadsworth The Benefits of Foreign Investment in South Africa. 2012. [Online]. Available : http://www.cbn.co.za/pressoffice/wesgro/fullstory/3754.htm) Wal-Mart-Massmart merger poses risk to SA: ministers. 2011. [Online]. Available: http://www.timeslive.co.za/politics/2011/08/02/walmart-massmart-merger-poses-risk-to-sa-ministers