Answer to Question #163198 in Economics for Anon

Question

What is the relationship between globalization and capitalism? And how do globalization affect the working class and the business class?

Answer 1

Let us first recall the everyday meaning of the word globalization. It comes from the Latin word Globo (globe). Globalization is a process starting from the early stages of the development of civilizations. The exchange of cultural products (skills and technical means, plants, and animals) created mankind.

Modern globalization waves have determined the planetary spread of new technological orders, new types of technology.

The computer, the Internet, the mobile phone - all these recent inventions have already become firmly established in human life in different parts of the world. Thanks to globalization, standards of quality of life (and not only material ones) have been set. On their basis, norms have been developed to protect human dignity. A person, thanks to modern communication technologies and modern transport, has received ample opportunities to be included in the treasury of world culture.

Most often, they talk about globalization as a new type of world order, which removes barriers that hinder the movement of flows of things, money, ideas, and social forms.

 the broad use of the concept of "globalization" is believed to have entered with the light hand of Margaret Thatcher. It is significant what meaning the "iron lady" put into this term. Already leaving "big politics", she gave a detailed explanation on this score. Margaret Thatcher pointed out that she does not agree with those who believe that the state is over. The institution of the state, in her opinion, should be preserved, but in the form of a state of a certain type, correlated with the Western concept of democracy. As for the world globalization order, it is revealed by the following statements made by Thatcher: “In fact, the Western model of freedom is real and universal, and its variations are due only to cultural and other characteristics ... Certain conclusions regarding international politics follow from these reflections. Only America has the moral right, as well as the material foundation, to take the place of the world leader. America's destiny is inextricably linked to upholding the values ​​of freedom on a global scale. America's closest allies, especially those in the English-speaking world, should see America's mission as the basis for developing its own mission ... Whether you like it or not, the West was victorious in the Cold War. Yet the main winner is the United States. Only America has what it takes to lead, in accordance with its historical and philosophical destiny, the cause of the struggle for freedom, and I welcome that. "

Thus, in the practice of globalization since ancient times, two components, unjustifiably identified, were discovered. The first component is a communication one, associated with scientific and technological progress, objectively expanding the speed and space of communications, overcoming the isolation of individual communities. The second component of globalization is an ideological project.

It should be noted that the concept of capitalism today no longer reflects the prevailing reality. A new categorical language is needed to describe the modern system of world order. This new system could be roughly defined as "post-capitalism." If the economy of classical capitalism is based on competition and a free market (the so-called "Manchester capitalism"), then the new model is characterized by global manageability. The social system of classical capitalism was described by Karl Marx as the antagonism of two classes - the bourgeoisie and the proletariat. The new social model is being built like a pyramid of the global corporatocracy. The financial system of capitalism was considered through the formula Money-Commodity-Money (stroke). Modern financial schemes for global emission are built differently - Money - Money (line 1) –Money (line 2). Politically, capitalism was correlated, speaking in terms of Marx, with bourgeois democracy.

The new political model has nothing to do with democracy, in its classical understanding as a democracy by the people. The institution of the state itself was actually privatized by the new political class of the global oligarchy. An axiological inversion also took place. Classical capitalism connotated with the spirit of bourgeois entrepreneurship, the cult of money, which has become an intrinsic value. The axiology of post-capitalism is the axiology of consumption, hedonism.