The Two Most Popular Economic Systems are Capitalism and Socialism

The Two Most Popular Economic Systems are Capitalism and Socialism
Since time immemorial, human nature has been characterized by the need for production, allocation of resources, the distribution of goods and services, and consumption. These needs have always inevitably given rise to different types of economic systems. Initially, the ancient people primarily relied on traditional economic systems until the advent of modern economic systems. Modern economic theories were inspired mainly by a political economist known as Adam Smith (Ucaka, 2015). Today, the two most popular economic systems are capitalism and socialism. The capitalistic system embraces private production and ownership of property. On the contrary, socialism espouses a collectively owned production, usually with respective governments acting as the central entities. This piece explores, in detail, racial capitalism.
Racial capitalism was originated by Cedric Robinson, who developed the term to deconstruct the notion that the largesse of European society would bring rationality to social relations (Melamed, 2015). Further, Cedric argued that capital could only be termed as such when it accumulates. Accumulation, according to him, can only be through producing and moving through glaring inequality among people from different groups or ethnicities. In this regard, many economic pundits have associated racial capitalism with aspects of white supremacist capitalist development. These aspects include slavery, colonialism, genocides, and migrant exploitation (Melamed, 2015). The economists also hold that racialism and capitalism are joined in the hip; they are inseparable. In essence, racial capitalism is inherently discriminatory.
Elements of Racial Capitalism
Getting the real meaning of racial capitalism has been a complex undertaking, and there has been a variety of definitions in the existing literature. However, there is a consensus that the term was first used by South African Marxists, Leggasick and Hemson, and the National Union of South African Students in 1976 (Go, 2020). These intellectuals primarily used the term to specify and condemn apartheid. This is in contrast to Robinson, who deployed it later to refer to global capitalism. In addition, despite the variations in defining the term, shared features are possibly identifiable.
To begin with, the term implies the existence of a possible profound relationship between racial inequality and capitalism. For instance, many economic commentators have sought to establish a connection between slavery and capitalist development. On the other hand, South African intellectuals seek to prove, beyond a shred of doubt, how apartheid and the South African economy were mutually interdependent. They explore how whites exploited non-whites to gain economic traction. Similarly, some scholars have deployed the term to denote the yawning disparities within the working class. In the same breath, others stress how capitalism pegs its existence on violence and deprivation. In a word, all these observers show that racial capitalism cannot happen in ideal situations.
Secondly, racial capitalism has a global outlook as opposed to a single national establishment. For instance, the South African intellectuals aforementioned argued that apartheid was not endemic to the country only. They contended that the practice is duplicated worldwide, though in different forms. As Besteman (2019) puts it, global apartheid has created a racialized world order. It has also created a hierarchical labor market that largely depends on disparate access to mobility. In addition, history is replete with accounts of imperialism, colonialism, and wanton dispossession of property. In short, the concept is spread globally, where the underprivileged continue to be subject to unrelenting exploitation for material gain. The other aspect incorporated in this line of thought is the transatlantic slave trade which significantly contributed to global capitalism. The despicable trade, which fuelled colonialism, was motivated by commerce to a substantial degree (Thiaw & Mack, 2020). On the other hand, colonization was predicated on Europeans' rather ridiculous views of the rest of the world. Their view that they were superior to other global races, especially black Africans, culminated in the expansion of colonization. Colonization was built on disparate relations and discrimination.
The other notable common feature is that racial capitalism has had political implications over the years. In instances where white individuals or major white institutions derive value from non-white racial identity, there have been far-reaching negative repercussions for individuals and society. This is because racial capitalism reduces the racial identity into something that can be sold or bought (Leong, 2013). By all accounts, the trend is dehumanizing and has resulted in racial resentment since non-white people feel used and exploited. By extension, the resentment has degenerated into combative and bloody confrontations like the ones experienced in South Africa and the American Civil War. In addition, racial capitalism should be apportioned blame for the countless political assassinations that have rocked the world over the years.
Last but not least, capitalism is rooted in feudal European societies with deep ethnic, religious, and national divisions. The system of feudalism consisted of a three-tier hierarchy. In the system, the monarchy owned all land or fiefs. It also owned the discretion to portion the land to the nobles in exchange for military service. In the middle of the hierarchy were knights who were tenants of the nobles. At the bottom of the tier were peasants. These were constrained to work the land by virtue of their social standing. In exchange for protection, the peasants paid homage and shared their produce with their lords. The system substantially escalated these divisions and inflated forms of social difference to nurture racial pecking orders. Some scholars have faulted the system by contending that the peasants suffered untold exploitation. On the flip side, others hold that the system was symbiotic, with every entity being an integral part and benefitting all in one way or another. For instance, despite the peasants being under the constraints of having to do the donkey's work, they received protection, in turn. The latter group has considered the system as a forerunner of capitalism. This is because it emphasizes the importance of collaboration between different social groups to achieve development (Leon, 2018). Finally, the group holds the conviction that feudalism gave rise to the slavery trade ostensibly because poverty and slavery have a strong connection.
Four Stages of Racial Capitalism
According to Robinson, who owns the bragging rights of originating the term, racial discrimination has four main distinguishable stages of consolidation. Top on the list of the four stages is the role played by indispensable immigrants in Europe. These immigrants, including Slavs, Jews, Irish, and Tartars, have been viewed as racialized outsiders within Europe. The Jews, for instance, emigrated from their homeland into Europe between the 5th and 15th centuries. Their movement into Europe, especially central Europe, was primarily precipitated by military aggressions, among other factors. While it is true that many countries visited untold hostilities against the Jews, others accorded them protection, mainly for economic reasons. Taxation records in Italy, for example, show that the Jewish community contributed vastly to the state budget by paying taxes. The situation was no different in France, where Jews received protection, mainly due to their profitability to royalty. A similar fate befell Slavs and Tartars, who had to offer some service to get protection. In a word, these communities went through various exploitations to guarantee their existence.
The second stage, according to Robinson, is the Islamic conquest of Mediterranean Europe and the equation of blackness with Islam that continues to ensue. According to Berger (2014), Europeans have always regarded Islamists with a measure of apprehension since the latter began their conquests. This is because many Europeans feel that Islam represents different value systems. In addition, they contend that Islams are naturally aggressive. This has inevitably put the two diverse groups on a collision course. (Berger, 2014). On a positive note, however, the two sides have had their fair share of intellectual interactions. They have not necessarily always been at loggerheads. During the Islamic conquests, Islam dominated the Europeans despite being inferior numerically. In some instances, the conquests dictated that Europeans pay special poll taxes. In addition, some were shipped away into slavery in North Africa. The slave trade was a crucial part of the relations between the two sides. In actual fact, it yielded to intense negotiations and economic treaties.
The third stage of racial capitalism was the colonization of Africa, Asia, and the Americas. Colonization, the general domination of one country by another, began in earnest in Africa at the turn of the 19th century (Ocheni & Nwankwo, 2012). Several factors necessitated the phenomenon of colonization. Chief among them was the emergence of the industrial revolution, which enhanced technology and socio-economic transformations. The industrial revolution also scaled up production. However, a major problem arose because the industrial process was moving at a much faster rate...