Thursday, March 27, 2014

Threats to capitalism [BP14]

 On march 15,2014 Jeremy Rifkin wrote an artical based off of his opinion on capitalism. The New York times took over the artical and it contained marginal cost which is the dollar amount associated with producing one additional item of a particular product.
 Each day the marginal cost is coming closer to zero and Rifkin believes that that is a threat to capitalism. Rifkins said that this is a paradox because eachday more products such as movies,music,and other goods are being produced but no profit is made from them. With the new technology that there is today people are able to download for free and all of the hard work goes to waiste in a way. If this was to keep happening people businesses would go downhill and cause bad market problems.
  The first problem that Rifkin reconized that was a big problem in market forces was napster. Napster was something that allowed people to download for free.With people downloading for free people could get with they want but all of the hard work that others did to succeed went away. To avoid this problem I believe that market forces should look into what they there items on.
  Adding things into the problems that businesses already face can better things but at the same time they can make things worst. With all of the new types of technology and phones people can hook there divices up to the computer and change whats on a site, and they can update and download for free. Them things can make stuff better and can hurt things.
  I agree with Rifkins analysis because bringing the marginal cost down closer to zero will cause some people to stop making money because certain things will drop down to being free. When the items become free its like a giveway no artist or company or site will be making a profit from all of the work that they put in. I also believe that capitalism will always take place in this world and we can only do things to help it but it will never totally be gone.

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