Karl Marx in his “Communist Manifesto” states that the wage gap will eventually result in working class revolutions around the world, and as a result the difference between the classes will be obliterated. Instead, Robert Reich in “Why the Rich Are Getting Richer and the Poor, Poorer” argues that the American economic development strategy, which is based on the expansion of production, will lead to the collapse of the American economy. However, the poor will suffer from various deprivations, the rich will find themselves in an even more unenviable situation in both cases. Furthermore, the scenario provided by Marx in his work proposes the worse position for the rich than the one described by Reich. First, the parity situations illustrated by both authors are the result of market overextension. This is due to the fact that trade relations are no longer bounded by national borders and companies sell their products not only in the specific region, but in every part of the globe, in order to obtain more profits. This concept of profit-seeking by manufacturers has also forced them to make the production process as cheap as possible. For example, high-volume production was moved from developed to developing countries with low-cost labor (Reich, p. 5), even when production was automated to exclude costs due to worker wages (Marx, p.44, Reich p. 17). According to Reich, the policy of the American national companies, which is to expand the distribution market, will end up triggering a slow but constant economic degradation. “And as American business sold its goods and services around the world, the purchasing power of American workers became far less relevant to its economic survival” (Reich, p.43). As a result of this, all classes in America have...... half the paper...... reducing the wage gap. Reich states that the economic crisis in America will result in a loss of wealth for the rich, but this problem will only affect wealthy people in America, therefore they will be able to emigrate to another country before becoming poor or investing in foreign companies. On the other hand, from Marx's point of view, wealthy people will be literally destroyed by the proletarians for three reasons. First, the proletarian revolution will be worldwide, so the rich will have nowhere to take refuge, everywhere there will be the same equal society. Secondly, the proletarian revolution is inevitable, so the rich man cannot stop the specter of communism. Finally, if the ex-rich man rises up against communism he will be punished. Therefore, in Marx's scenario of the sinking of the rich, they are doomed, since there is no way for them to avoid that state of affairs..
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