Is there any fact that Capitalism needs poor communties in its system to survive.?

Question

And Is that why there are and have been ghettos where capitalism thrives?

Answer 1

Generally the poor are a drag on a capitalist economy. They do not have money to spend and the added value of their labor is low.

Skilled workers produce a higher percentage of added value and also serve as a market for other goods and services.

Answer 2

It is not capitalism that is required but CAPITAL.Capital scarcity is the stumbling block in development of poor countries.Internal resources are low.If external capital comes it may be of much help.Even the poorest in USA is "rich" if you compre to a poor man in Africa,in income and life style.A poor country is a country where per capita ANNUAL income is less than 1000 US$.

Answer 3

of course, the proof is all around us. Capitalism requires the minority to be poor for the majority to be rich. If everyone was rich who would man the factories, clean the streets and do all the general dirty work. Its about the distrabution of wealth and value of trade. Id advise reading some marx, as he is still the main say on capitalism and its intracicies. If everyone was rich it wouldnt workl its contradictary to what it is. As it is explotation incarnate. CApatilism is built for the rich, thats why tax is the same if your paid 40'000 pound or 4000000000000000000000pound, and in many cases is even less the more you get paid due to clever tax tricks.

Answer 4

First tenet of Capitalism is the profit motive. Companies make money by charging more for finished goods than it costs to make them. Labor is inherently cheap when the supply of labor is plentiful (witness the screams of anguish of factory workers (and now call center employees) with the rise of sanctioned (guest worker program, anyone) illegal immigration and 'outsourcing'.
Ghettos rise near factories as workers, not paid as well as owners, are forced to live near factories to save commuting costs. Landlords, knowing the workers are beholden to them and jobs they have, see no need to upgrade or maintain houses (hurts short term profits of building owners).
Your question is backward, in that poor communities are not needed, but they arise from unchecked profit motive.

Answer 5

The whole system is based on doing better than your peers (materialistically)..

If you took the poorest enchilon out of the equation the next poorest would simply become the new lowest point of reference.

What a lot of people don't realise is that a lot of people that simply despise capitalism reside in these communities and don't really care what capitalists think of them... In fact they are laughing their socks off at them.

Answer 6

Get rich quick schemes in the capitalist business world, (buyouts, IPOs, conglomerates, acquisitions, mergers, and the stock market), do not actually work. Remaining solvent does not actually exist within false economics capitalism.

Profit existing in the capitalist business world, or millionaires existing within capitalism, is pathological deception committed by the 21 organizations spying on the population with plain clothes agents, (with covert fake names and fake backgrounds).

Actual economics is the persons paying the monthly business loan payments of companies voting at work in order to control the property they are paying for.

Capitalism is the psychology of imaginary parents, false economics, and the criminal deception of employees that are paying the bills (including the stocks and bonds, or shares) of companies.

Anti-democracy republicanism is the psychology of imaginary parents and false government.

Answer 7

Absolutely.

Capitalism breeds greed... it breeds ppl that want to dominate others and say, "... look I live in THE BIG house.."

Without the working poor, these ppl can't be successful. It is the poor that does the service jobs for low wages that allows the rich to be rich and greedy.

Answer 8

Not at all. Capitalism works because the poor see the rich and work to be like them. It is a cycle that makes the poorest of the capitalist nation richer than the richest in other nations.

Answer 9

Yes.

The amount of money in the system is finite. For one person to be wealthy, many have to be poor. But like many people have pointed out, poor in America isn't necessarily a bad thing.

Answer 10

41% of the world's people live in abject poverty on less than $2 per day as they toil to produce the goods upon which the foundation of capitalism rests. This figure doesn't include those who live in the developed nations and earn far more than $2 per day but still toil in poverty to supply capitalism with the needed cheap labor.