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  • Essay / Communist Manifesto - 1234

    Karl Marx in his “Communist Manifesto” states that the wage gap will eventually lead to working class revolutions across the world and therefore class differences will disappear. While Robert Reich in “Why the Rich Get Richer and the Poor Get Poorer” argues that the American economic development strategy, based on the expansion of production, will lead to the collapse of the American economy. Although the poor will suffer various deprivations, the rich will find themselves in an even more unenviable situation in both cases. Furthermore, the scenario proposed by Marx in his work proposes for the rich the worse situation than that described by Reich. First of all, the situations of equality illustrated by the two authors are the result of an excessive extension of the market. This is due to the fact that business relations are no longer limited by national borders and companies sell their products not only in a specific region, but all over the world, in order to obtain more profits. This profit-seeking view of producers also forced them to make the production process as cheap as possible. For example, large volume production has been shifted from developed countries to developing countries with cheap labor (Reich, p. 5), also as production becomes automated to exclude costs due to workers' wages (Marx, p. 44, Reich p. 17). According to Reich, America's domestic corporate policy of expanding the distribution market will eventually trigger slow but steady economic degradation. “And as American business sold its goods and services around the world, the purchasing power of American workers became less and less relevant to its economic survival” (Reich, p. 43). As a result, all social classes in America fall to the middle of the paper and narrow the wage gap. Reich states that the economic crisis in America will cause a loss of wealth for the rich, but this problem will only affect wealthy people in America, therefore, they can either immigrate to another country before becoming poor or invest in businesses foreign. On the other hand, from Marx's point of view, the rich will literally be destroyed by the proletarians for three reasons. First, the proletarian revolution will be global, so the rich will have no place to flee, there will be the same egalitarian society everywhere. Second, proletarian revolution is inevitable, which is why rich men cannot stop the specter of communism. Finally, if the former rich person speaks out against communism, he will be punished. So, in Marx's scenario of the sinking of the rich, they are doomed, because they have no way of avoiding this state of affairs..