Question

1- The labor theory of value states that giant corporations can only get rich if they succeed in making others poor. They do this by paying their workers less than they are worth. Do you think corporations like Wal-Mart get rich by making others poor? Why or why not?

2- Why would the island’s overall productive capacity fall if Able were a big bully and simply stole or took half of his neighbors catch every day? What is an example of this?

Answer 1

1..)

There are many instances where big corporate like Wal-Mart are involved in exploitation of labors. Labors are underpaid and made to work overtime without sufficient compensation. These firms sometimes do not pay legally binding minimum wage to its workers.

But still, these corporate are better than small and informal sector. Informal sector is relatively more exploitative than big corporate.

To some extent, we can say that big corporate resort to the exploitative practices only to survive market competition but still these corporate deliver better than the small and information sector where labors are exploited excessively.