Capitalism Quote by SWEEZY Paul M. BARAN Paul A
““At the root of capitalism poverty one always finds unemployment and underemployment what Mark called the industrial reserve army which directly deprive their victims of income and undermine the security and bargaining power of those with whom the unemployed compete for scarce jobs.””
About This Quote
Capitalism’s structural flaw creates a reserve of unemployed labor, which depresses wages and weakens workers’ bargaining power, perpetuating poverty and insecurity.
In simple terms: Unemployment undermines workers’ power.
Key Takeaway
Labor surplus erodes wages.
Themes
economics
labor markets
capitalism
inequality
Mood
critical
analytical
Type
economic critique
social commentary
When to use this quote
- Policy debates on minimum wage
- Union negotiations
- Social safety‑net design
Key Concepts
reserve army of labor
structural unemployment
Practical Applications
- Implement job‑creation programs
- Strengthen collective bargaining
Questions to Reflect On
- How can policy reduce the reserve army effect?
- What alternatives to capitalism address this issue?
A Different Perspective
Not all unemployment stems from capitalist reserve forces; technological change and skill mismatches also play roles.
![“Neither Italian fascism nor German national "socialism" have anything in common with such a [Soviet socialistic] society, primarily because private ownership of factories, plants, lands, banks, means of transportation, etc., remain untouched there, and, therefore, capitalism in Germany and Italy…” quote by Joseph Stalin](https://sms4smile.com/quotes/img-quotes/411/joseph-stalin-1734_capitalism_neither-italian-fascism-nor-german-natio_1430.jpg)
