1.In Reading 4.3, Michael Parenti differentiates between owners and employees in describing the natural bifurcation of social class in terms of capital and labor possession. Owners are individuals or groups who own the means of production—businesses, land, or machinery—and gain wealth essentially from the fact that they own them. They gain from these things without necessarily doing actual physical labor themselves. An owner is a case of a CEO or big shareholder of a company like Amazon or Tesla. Employees, however, are individuals who do not own the means of production and must sell their labor for wages. They rely on their labor to survive and have little control over the wealth generated by the firm. A good representative example could be an office customer service representative or an Amazon warehouse employee. This comparison brings into sharp relief the disparity of power between those who exercise power over resources and money and those who provide the labor which enables them.
2.Adam Smith work argument is that commodities achieve real value through effort employed in production and selling and not through money. Effort employed in the acquisition of raw material, production, and selling provides a real value, he asserts. Effort employed in purchasing raw materials, production, and selling provides commodities with a real value. But the above passage is faulting capitalism on the grounds that the capitalist regime is such that the workers get hardly any share of the value which they produce. The remainder, i.e., the surplus value, is reaped by the masters and makes them rich at the expense of other individuals’ labor. This is exploiting workers who create enormous values compared to the sums they receive back in the form of wages, but their owners benefit from them without putting a whit of effort into it. The imbalance between the value that the workers producing value are worth and that which they receive in exchange is the disproportion at the very heart of capitalism, where wealth ends up for the most part in the owners’ pockets.
3.Paul Heideman, in Reading 4.4, disputes that class is an identity, but instead is a place within the structure determined by the dialectic between labor and capital. He disputes that individuals will associate with specific social classes by income or mode of living, but that class is actually determined by where one resides within the economic structure and not from one’s individual identification. That is, class is the relation of power between owners of the means of production and sellers of their labor, not something one identifies with. Heideman’s argument shifts the subject of debate from personal identity to class as a universal social and economic relation, as opposed to the idea that class is a question of personal perception. It reaffirms the assertion that class is deeply embedded within the very foundations of ca
pitalist structure, and understanding it means having a sense of the structural forces that are working to shape what people are doing economically, rather than who they believe they are.
4.In Reading 4.4, when it says that “class structures are built around a close form of dependency,” it is referring to how capitalists and workers are in close relationship with each other in a system of economic relations where the success of one depends on the labor of the other. This “near form of dependency” suggests that the capitalist class depends on the workers to yield profits, and workers depend on capitalists for a job and for wages. Interdependence is not mutual, but rather there exists a power discrepancy—the capitalist class holds the means and the profit, and workers depend on wages to survive. An example of such a dependent relationship is the one between workers and factory owners: the factory owners rely on workers for the production of goods and profit, while the workers rely on factory owners for a source of employment and income. In this situation, workers’ labor creates value but with most of the value taken by the owners, illustrating a dependent relationship that keeps the capitalist system afloat but widens inequality.