The impact of capitalism on both the rich and the poor has been a subject of discussion for many years. The rich have often suggested that capitalism is the best economic system given that it tends to encourage the people to work hard as stipulated by the theory of objectivism. On the other hand, poor people have argued that capitalism encourages their exploitation by the rich. This is because capitalism encourages the free will of choice. This has encouraged the rich to exploit the poor through cheap labor (Giddens, 2002).
It is clear that poverty and hunger are the paramount problems faced by the young generation. Capitalism imposes the systemic denial of the various basic needs to a vast majority of people. Even as a small population enjoys extensive wealth, there has been a continued scarcity of clean drinking water, housing facilities, food, clothing, basic educations, and healthcare facilities. The increasing poverty rate of the universe at this time has been encouraged by capitalism which explores poverty as unending source of cheap labor. Karl Max in his Marxism theory asserts that capitalism was majorly meant to ensure that the ruling class remained rich as the majority proletariats languish in poverty. Poor children and women have been subjected to inhuman working conditions for over eight hours a day in factories owned by the wealthy people only to be underpaid. This also happens in most of the third world countries which were influenced by colonialism. Most of these countries are damaged by the capitalism practices which facilitate economic control by international organizations as well as multinational companies (Giddens, 2002).
One may argue that capitalism does not inhibit the poor to make fortunes for themselves. Further, some people may say that it is unethical to get the wealth owned by the ruling class and distributing it equitably to the poor. This is seen as encouraging the poor to be lazy whilst extorting the wealthy people something that is discouraged by the theory of Social Darwinism. But from a critical point of view, capitalism has put forth many regulations that act as an impediment to in the way of poor people struggling to make ends meet. High tariffs have been imposed on business licenses and subsidies are given to those that have already developed. From this perspective, it is clear that capitalism is meant to encourage the affluent to get richer while oppressing the poor (Giddens, 2002).Most nations of the world are poor and this means that many people being poor despite their respective countries using the capitalist economic systems. From this observation it is clear that this system does not represent the interest of the vast majority since they are still hungry and poor. Capitalism only encourages people to be ambitious for great things that are not achievable under these conditions. In most countries powerful organizations such as banks have continued to flourish while the majority their clients have continuously languished in poverty. This is because capitalism allows the banks to impose interests of their choice to money that is loaned to people. The poor have been the ones that have suffered under such situations given that they are the ones that are dependent on the loans. This has also been the case with poor countries that have borrowed from poor countries. The end result has been the increase of poverty among the locals. This clearly indicates that capitalism is directly related to the increasing poverty among various societies (Giddens, 2002).
In conclusion, capitalism has immensely contributed to the ever increasing poverty rates across the globe. This is because through capitalism, the rich have continuously exploited the poor through cheap labor. Furthermore, the rich countries have used capitalism to exploit the poor nations through imposing undesirable condition for any financial aid that is offered. This has resulted to poor living standards of the people living in underdeveloped nation.