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Legalised Exploitation – Stocks and Shares

The idea of owning a business is a ingrained part of our society, however the organisation of business today is a legalised form of exploitation which make the poor poorer and the rich richer.

If the business is created by more than one person, then those people share the profits of the business in a partnership.

After the setup of the business, any new workers that join the business are not usually entitled to any profit generated, only their wage which is set by the employer.

This is were the problem starts.

Workers are exploited by their employers whom benefit entirely from the profits created from their labour. This is a form of unearned income, which is the process of those with capital controlling the means of production to extort capital from the workers.

This is the system of capitalism, which dominates the world today.

In small to medium sized business, where the owners of the business are usually also employees within the business; the owners primary motivation is profit, but because they are also employees they usually care about the well being of the workers and the social responsibility of the business.

As the business grows and the founders have extorted a significant amount of capital from the workers, they often retire and live entirely off there capital generated by the workers labour.

Because the workers never get their rightful share of the profits, the amount of capital they can save to start their own business is limited, and ultimately they would have to find wealthy investors to finance their own business.

Investors give capital to entrepreneurs, and in return they want a share of the ownership of the business, and a share of the profits.

This reduces the share of the profits the founder of the business recieves, so they are encouraged to reduce the pay and working conditions of the workers to compensate, exploiting the workers even more.

To generate more unearned income, the wealthy elite (Bourgeoisie) encourage a “free market” where they can invest money in all different types of companies and exploit workers to fund their extravagant lifestyle.

The ultimate form of capitalism is slavery, where the the owners of the plantations also owned the workers, and extorted the maximum amount of profit, becoming incredibly rich and powerful.

This is why today some countries are rich and some are poor. The poor countries were the ones where the workers were exploited and enslaved, and the rich countries are the ones which did the exploiting using brute force and barbarian tactics.

What’s the alternative?

The alternative to the exploitative business model are co-operatives.

In a co-operative, the workers and consumers all own the business, which means they get to share equally in the profits the business makes, and have full control over how it is run.

This benefits the workers, because they receive better pay and working conditions. It benefits consumers, because they get products they need. It benefits the wider community because business decisions made will take into consideration the needs of the community and the effects the business has on society – making it possible reduce carbon emissions, promote fair trade and invest in community projects.

These types of businesses already exist, so you can make a difference today by trying to purchase from them whenever you can.

Further reading:
What’s the Problem With Unearned Income?

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