American Economy (40%)
Since the Great Recession, this country’s economy is still recovering and for the last ten years, there has been a low level of unemployment. That is, finding a place to work has been easy. Conversely, I have noted that the benefits of a tight labor market have not been felt by most of the workers of my middle class. Given that this country has a capitalist economy, it is only those at the top who benefit from higher corporate profits and wealth. Further, judging from personal experience, my wage as a middle-class worker has remained relatively flat for over a decade (personal position in the economy).
The largest population comprise of people who can work and engage themselves in different economic activities (Employed or Self-Managed ). However, this does not imply that everybody is working in America (Awan, 2016). For instance, in our resident estate, I have observed that there are those people who spend most of the time in their apartments. The largest of the population are women as they are engaged with house courses. In America, gender is one of the factors that influence the distribution of labor in both the private and public sectors. For instance, during the military recruitment, most of the candidates are males. The decision of labor distribution is based on the perception that there are jobs that one gender can perform well than the other gender (Mohun and Veneziani, 2017). Similarly, most of the airline companies in the U.S. hire females as air hostess compared to males.
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An Ideal Economy/Perfect Economy (60%)
From the experience of a capitalist economy, lack of labor mobility denies the largest number of population opportunities for exploiting their working capacities. In this contention, I believe that improving labor mobility would be one of the ways I would achieve an ideal economy. This will be an economy where laborers have the freedom to move around either in terms of geographic or occupation. With this, mobility everyone will be in a position to be self-employed or employed regardless of their gender. For instance, the women spent most of the time doing house duties without any other economic activities, they may engage themselves in crafting and knitting. Later, they can market their crafted products through online platforms while still in their apartments. Further, with labor mobility in the economy, people will be able to exploit their working capacity to the maximum. This means there is no one or controls to determine the work that one can do. Unlike in other economies such as capitalists where working capacity is determined by the time one can work, gender and level of education.
In this perfect economy, I would still hold on the Labor Theory of Value to compensate. This theory suggests that the value of labor (wages) should compensate for the effort it takes to prepare to get the capacity to deliver as expected ( Qian, 2018). Therefore, the determinant of the compensation would be the output or the performance of the laborer. For instance, the salary of the sales and marketing manager will depend on how sales of the company are improving over time. The basic reason is to achieve the labor value where the effort of the laborer is equally compensated. Most importantly, this reward system will ensure fairness.
Further, in this economy, I would still embrace management responsibilities as they are key inputs in an economy. This means there will be managers. However, work will be organized based on the capacity and skills of the laborer. Another important aspect of this economy is to recommend temporary work positions and organizations. With this, it will be easy to change managers' positions and their duties depending on how they perform in the previous working periods. Therefore, I would maintain control of how to work and duties are organized. As aforementioned, all the reward systems regardless of the work position will be based on the Labor Theory of Value. Lastly, like any other economy, consumers bargaining is always high. The product to be created in this ideal economy depends on the nature of the needs, taste, and preferences of consumers. Therefore, it is the consumers who will be deciding the kinds of products to be created. In conclusion, labor in the market is also a commodity . However, I believe that if it is distributed based on need rather than the deed, an ideal economy will not be achieved. This means the absorption of a laborer in this economy is decided from what they have achieved or can achieve.
References
Awan, A. G. (2016). Wave of Anti-Globalization and Capitalism and its impact on World Economy. Global Journal of Management and Social Sciences , 2 (4), 1-21.
Mohun, S., & Veneziani, R. (2017). Equal and Unequal Exchange in the Labor Theory of Value: Comments on Moseley. International Journal of Political Economy , 46 (1), 35-42.
Qian, F. E. N. G. (2018). A Review on Marxist Labor Theory of Value Since 21st Century. On Economic Problems , (2), 5.
