Is poverty necessary for capitalism?

Poverty is not a precondition for capitalism. In fact it requires at least some accumulation of wealth beyond subsistence to get started. Absolute poverty is not necessary for capitalism to work even after the fact. In fact, capitalism is the archenemy of absolute poverty.

How does poverty relate to capitalism?

As an economic system, one of the effects of capitalism is that it breeds competition between countries and perpetuates poverty among developing nations due to the individual interests of private corporations rather than the needs of their workers.

Why is poverty necessary to society?

Poverty helps with the recycling of goods and incompetent professionals. A population of poor helps uphold conventional norms. The poor more often get ‘caught’ in criminal activity, and most studies deal with crimes committed by the poor.

Why is poverty essential to capitalism?

Poverty is not essential to capitalism. It is not even a characteristic of capitalism. It reflects more the political and social realities where the capitalist undertakes their business. In fact, capitalism works very well in situations where poverty is low. Henry Ford understood this well.

Is poverty an essential part of the system?

In a purely capitalist society poverty is an essential part of the system. It is like the game Monopoly. Over time the rich continue to get richer while the poor get poorer, until the system maximizes misery for the poor.

What is the cause of poverty?

Poverty is not created in a vacuum. Socialists understand that poverty is caused by the natural workings of a capitalist marketplace that has always excluded a significant part of the population from decent jobs and, thus, from the ability to purchase on the private market goods necessary for a decent life for themselves and their children.

What is social socialism and how does it affect poverty?

Socialists understand that poverty is caused by the natural workings of a capitalist marketplace that has always excluded a significant part of the population from decent jobs and, thus, from the ability to purchase on the private market goods necessary for a decent life for themselves and their children.

https://www.youtube.com/watch?v=x9tS_D1nqPw