Capitalism refers to an economic system that allows private actors to control and own property to meet their interests, where the system of demand and supply is the critical pricing mechanism, which ensures that the best interests of the society are considered ( Marable, 2015) . The modern capitalism in the United States grants individuals greater freedom to manage or operate property that enables them to get profits from competitive conditions. Capitalism creates an environment where every individual is concerned about wealth creation; hence, in the recent times, the U.S. has experienced significant growth in the number of workers as more people are embracing education, progress, and experimentation, and mobility, therefore enabling the economy to grow.
In the U.S., the working class comprises approximately 30% to 35% of the total population, mainly including young adults and individuals from the lower economic classes, who are mostly people of color ( Bonilla-Silva, 2013) . The industrial sector employs only 37% of the working people in the country, while the bulk of the working class, estimated at 76% perform service jobs in health care or retail ( Bonilla-Silva, 2013) . The larger group of workers in the service jobs category demonstrates significant racial inequalities, where the white workers make up only 59% of the working class, yet the total adult population is estimated at 64%. However, it is estimated that the people of color will comprise the majority in the services labor force by 2032 ( Bonilla-Silva, 2013) .
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Work under the modern capitalism in the U.S. is compensated through salaries and wages, as determined through the fair compensation policies that are passed by governments. However, compensation is not as fair as it expected as men continue to earn more than women and whites often earn more than the people of color. The income inequalities emanate from the nature of work that people do. For instance, men engage in industrial jobs, which are better paying compared to the service jobs where women are concentrated, therefore bringing about income inequalities in the context of gender ( Marable, 2015) . On the other hand, whites have lower poverty levels and have more significant opportunities for pursuing higher levels of education, a factor that gives them an advantage in acquiring highly paying jobs as well as managerial positions, unlike the people of color.
Work is mainly organized into tasks or clearly defined activities that are assigned to the workers. Workers are supervised by managers, who are compensated through salaries and wages. Managers are often employed on a permanent basis; however, in some cases, they are hired on a contractual basis, therefore, indicating that their role can be temporary ( Larcker & Tayan, 2015) . The kinds of products that labor in the U.S. creates include goods and services that seek to address the needs of the citizens. Hence, the consumer market plays a critical role in determining the products that the economy produces. The products of labor in the U.S. are commonly distributed by deed as illustrated in the principles of modern capitalism. The proprietors or owners of capital gain the largest share of the profits, as their goal is majorly to maximize profits.
In conclusion, the modern capitalism in the U.S. encourages unequal distribution of wealth as the system allows the owners of capital to earn more than the actual workers. The main problem associated with this aspect is that individuals who own 40% of America’s wealth comprise only 1% ( Bonilla-Silva, 2013) . The major challenge with this element is that the poor wealth distribution encourages continued poverty among some populations, particularly the people of color and increases opportunities for wealth creation among the whites. Hence, in the future, the minority groups are likely to comprise the more significant percentage of the working class, while the whites will mainly form the ruling class, bringing about social risks such as increased racial discrimination among others.
References
Bonilla-Silva, E. (2013). “New racism,” color-blind racism, and the future of Whiteness in America. In White Out (pp. 268-281). Routledge.
Larcker, D., & Tayan, B. (2015). Corporate governance matters A closer look at organizational choices and their consequences . Pearson Education.
Marable, M. (2015). How capitalism underdeveloped Black America: Problems in race, political economy, and society . Haymarket Books.
