Posted 4 years ago on Jan. 2, 2012, 6:56 p.m. EST by FriendlyObserverA
This content is user submitted and not an official statement
Not everyone in a capitalist system is successful. in fact the line is drawn between employee and employer. Or perhaps the line is also drawn between consumer and retailer.
Capitalism , after all, is about making profit on capital, which directly compares to buy and sell of capital.
The manufacture of goods hires employees to produce the goods and the soul owner of the business owns the goods produced . Which than is usually distributed to wholesaler and retailer eventually to the final destination of consumer.
Everyone is a consumer. But not everyone is a capitalist.
The exchange of money earned by labor and eventually passed on to retailer is meant to circulate creating jobs and maintaining livlihoods. There are times when consumers will actually borrow money from banks with the promise to repay the loans through future earnings.
The problem comes in when retailers mark up there prices so high that sales actually fall . This causing layoff at manufacturing ..and job loss. Now with job loss those owing to banks can no longer make their payments. Usually loans on items of automobiles and homes, resulting in foreclosing and loss of property.
So why does the retailer not keep his markups low ? surely this would help sales and stimulate economy?
The idea that a retailer can affect so many lives over his decision as to what price he sets is a major flaw in capitalism.
Government intervention and regulation is needed to control retailer mark up and thus maintain a healthy capitalist society.