Monday, February 20, 2006

Exploitation

How does exploitation play into my definition of capitalism? How is it that capitalism exploits the environment, workers, and consumers? Most of us I'm sure have seen or heard reports of the horrific effects that the production of most goods have on our environment. From air pollution, and chemical and toxic run-off into water supplies, the slash-and burn deforestation of rain forests and wood lands around the globe it is relatively simple to conclude that to produce something on a large scale generally has adverse effects on the biosphere. It is also not uncommon to hear about the various atrocities suffered by workers world wide. Sweatshops and starvation-wages are some of the most common ways to exploit workers. It would be impossible for me to sum up the plight of the exploited worker in one simple blog, there have been thousands of books, articles and documentaries produced depicting the horrors of the 3rd world laborer. In a business sense however the explanation is very simple, to make the most profit you must produce your product or offer your service with the least amount of over-head possible. Low wages, poor benefits packages, and restrictions on over-time pay and sick leave (where available) are the most common ways to lower over-headed in relation to labor costs. In many situation where the bottom-line is the most important factor it is not uncommon to see lax or non-existent policies on workplace safety, and also less environmentally sound policies. In business, unfortunately, it isn't enough to simply produce at the lowest possible cost, to maximize profits you must also charge the highest possible amount which will be accepted by the consumer. This leads me to the often omitted exploitation of the consumer.

On a daily basis most American's are bombarded with advertisements. Billboards, television and radio commercials,and print ads in magazines and newspapers are traditional weapons used by marketing agencies in the war for market share. The basic purpose of most advertising campaigns is in effect to convince the consumer to buy an item or a service which they do not necessarily need to function or survive in society. Organizations and researchers have conducted many studies of the content of marketing campaigns in relation to the product being sold. Often times it has been concluded that most advertisements offer little information about the performance or product features and instead tantalizing the consumer with images designed to dazzle and hook potential buyer into a purchase. Advertisers exploit the pyschology of consumers to bolster sales and increase revenue.

One of my favorite examples of consumer exploitation and be found in the check outline. Cosomo, Red Book, Seventeen, Ladies Home Journal, Good House Keeping, all magazines with bright colors and attractive models, enticing us with their insights into the world of fashion, food, and entertainment. Priced acceptably around $4 each the magazines are a cheap and easy way for the busy college-student, working-mother or house-wife to catch up on the latest trends. However, do you really think these magazines pay the bills simply from magazine sales? These magazines have found their niche in our service based economy by providing a direct pipeline from manufactures to consumers. Companies pay hundreds of dollars to run full page ads attempting to pursued you to buy their products. After all, if Cosmo is allowing it in their magazine is must be worth buying! Designers and manufacturers also send hundreds of products to columnist simply as "perks" hoping to sway their opinions. So what are the effects of subscribing to this $4/issue pipeline? Well if the advertisers get their way that $4 will be multiplied tens and hundreds of times in your purchases of CD, movies, concert tickets, clothing, make-up, cleaning products, and technology.

In the end we realize that in everything we do we are either spending money or being persuaded to spend our money. This is just one way we the consumers are being exploited.

Other forms of consumer exploitation can be considered more devious and damaging. Every time a company releases a product with unknown side effects, or a product that may potentially harm us we are being exploited. Everytime a farmer injects an animal with grow hormones to speed growth and size of his profits we are being exploited. With girls sometimes as young as 9 or 10 menstruating and developing breasts and increased cancer rates we must conclude, in effect, that it is "something in the water". When a person or company decides to increase their wealth by providing goods or services to us, the consumers, they must be held accountable and it is our responsibility to be sure they are.

You don't have to take my word for it though. Research it for yourselves. Watch movies like The Corporation, read Karl Marx's Das Kapital he wrote about commodity fethishism and the dangers of capitalism almost 150 years ago, and simply look around you. Think about the things you see, hear and experience. How are you effected by capitalism both good and bad?

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