For anyone who can understand basic english and basic economics the following is obvious. For those who cannot, they will continue to lift the Union flag aloft and continue to be a poisonous thorn in the side of the UK public.
Thank you Jeremy Corbyn @jeremycorbyn Spot on.
— Jerry Hicks (@JerryHicksUnite) October 25, 2024
"It is classic blame the minority for the problems of the majority."
Jeremy Corbyn condemns Tommy Robinson ahead of a march on London tomorrow#StopTheFarRight #StopTommyRobinson pic.twitter.com/HQPK5QmKHt pic.twitter.com/QokVkG3hyo
The Real Cause Of Inequality? A System That Promotes Greed
Capitalism, as an economic and social system, is often portrayed as a force for innovation, opportunity, and prosperity. Yet, a closer examination reveals it also drives significant inequality and systemic poverty. The root causes of these disparities lie not in the characteristics, cultures, or behaviours of ethnic minorities, Black people, or Muslims, as often claimed by certain narratives. Instead, they are outcomes of how capitalism structures power, resources, and opportunities. This misattribution of economic struggle onto minorities obscures the role of capitalist dynamics, which concentrate wealth and exploit labour, reinforcing cycles of poverty and inequality. In Britain, a nation where class divides intersect with race and ethnicity, this analysis becomes essential to dispel myths and uncover how the capitalist system functions to maintain these inequities.
Under capitalism, wealth and resources are accumulated primarily by those who own means of production, such as factories, land, and technology, and not those who provide the labour. This ownership structure creates a wealth divide, as those with capital can generate profit from the work of others while those dependent on wages have less opportunity to accumulate wealth. This process is foundational to capitalism: profits depend on paying workers less than the value they create. As a result, the system tends to favour profit over equitable distribution, driving inequality on a large scale. British history provides examples of how this dynamic has evolved, with class stratification underpinning society since the Industrial Revolution. For example, large landowners reaped vast profits, while rural populations faced poverty and urban workers toiled under poor conditions. Today, this manifests in wealth accumulation by corporations and investors, with CEOs in Britain earning 119 times the average worker’s salary, illustrating the systemic gaps capitalism enforces.
A crucial aspect of how capitalism fosters inequality is its tendency to blame marginalised groups for poverty and lack of opportunity. In British society, this is evident in the frequent scapegoating of Black people, Muslims, and ethnic minorities in popular media and political rhetoric. This narrative shifts attention away from structural issues, such as underinvestment in public services and lack of fair wages, and instead attributes socioeconomic struggles to ethnic or cultural differences. For instance, politicians and media outlets have perpetuated stereotypes about ‘migrant job-takers’ or ‘welfare dependents’ within ethnic communities, ignoring how capitalism’s pursuit of cheap, flexible labour has driven outsourcing and weakened worker protections. A 2017 report by the Institute for Fiscal Studies found that minority ethnic groups in the UK were significantly more likely to be in insecure, low-wage jobs and thus at higher risk of poverty. Yet, the prevailing narrative frames their poverty as a cultural shortfall rather than a product of capitalist structures.
One illustrative example of this is the treatment of migrant workers in Britain. Migrants often fill low-paid, precarious jobs that citizens are reluctant to accept due to poor wages and conditions. These roles are essential to the functioning of many industries, including agriculture, healthcare, and hospitality, yet they offer limited opportunities for upward mobility. Despite the essential nature of their work, migrants are often vilified as a ‘drain’ on resources. This rhetoric diverts attention from how businesses profit by maintaining low wages, capitalising on migrant workers’ vulnerability, and using immigration status to limit workers’ rights and bargaining power. Thus, capitalism creates a racialised underclass while denying responsibility for their poverty. A 2019 Migration Observatory report found that migrants were more likely than UK-born citizens to work in industries with high job insecurity, such as cleaning and catering. This setup benefits capitalist interests while keeping minority workers in poverty, illustrating how inequality is systemically reinforced.
Another dimension of this inequality is the concept of ‘reserve labour’ in capitalist systems. Reserve labour refers to the segment of the population kept in a state of semi-unemployment or underemployment to control wages. Black people, Muslims, and other ethnic minorities are disproportionately represented in this group, which means they face higher unemployment rates and are more likely to accept low-paid work due to a lack of alternatives. According to the Office for National Statistics, Black people and ethnic minorities in the UK experience higher unemployment rates than white Britons, even when controlling for education and experience. The underlying cause is not personal failings or cultural incompatibility, as often suggested by prejudiced narratives, but structural barriers that capitalist economies impose to maximise profits. By maintaining a reserve labour force, employers can suppress wage growth and discourage collective bargaining, thereby increasing profits while keeping a significant portion of the population in economic precarity.
Moreover, housing, a fundamental human need, is treated as a commodity within capitalist economies, leading to severe consequences for low-income households. The housing market in Britain reflects these dynamics starkly, as property ownership and speculative investments have transformed housing into a means for wealth accumulation rather than shelter provision. Black and ethnic minority communities face higher barriers to homeownership due to lower wages, discriminatory lending practices, and over-representation in lower-paying jobs. As a result, they are more likely to rent, often in poorly maintained, high-cost housing. In 2020, Shelter reported that 63% of Black people in the UK rented their homes compared to only 29% of white people, reflecting how structural inequalities intersect to perpetuate poverty in ethnic communities. Capitalism’s prioritisation of profit over accessibility in housing markets means that landlords and property developers benefit from rising prices, while marginalised communities face housing insecurity, forced relocations, and overcrowding.
Another sector where capitalism amplifies inequality is education. In theory, education can be a vehicle for social mobility, offering individuals the chance to improve their circumstances. In practice, however, capitalism has commodified education, privileging those with financial means and reinforcing class and race-based divides. Tuition fees and the high costs associated with higher education disproportionately impact low-income families, many of whom belong to ethnic minorities. According to a report from the Social Mobility Commission, ethnic minority students face significant challenges in accessing quality education and securing high-paying jobs post-graduation. Capitalism’s focus on profit has also led to the privatisation and underfunding of state schools, which affects predominantly Black and ethnic minority communities that rely on these institutions. By depriving these communities of quality education, capitalism limits their economic mobility, ensuring that poverty and inequality persist across generations.
The COVID-19 pandemic further exposed capitalism’s inequitable structure and its disproportionate impact on ethnic minorities. As the pandemic strained healthcare systems and economic sectors, minority workers were often on the front lines, occupying ‘essential’ yet low-paying roles in healthcare, transportation, and retail. These workers faced higher risks of exposure to the virus while lacking adequate financial protection or healthcare benefits, a disparity exacerbated by long-standing underfunding of public health services under neoliberal economic policies. Data from Public Health England revealed that Black and ethnic minority people were at a significantly higher risk of death from COVID-19 due to their disproportionate presence in high-risk jobs and crowded living conditions. This outcome is not a reflection of personal choice or cultural factors but an indictment of a capitalist system that sacrifices worker safety for profit, with marginalised communities bearing the brunt.
The austerity measures implemented in Britain over the past decade provide further evidence of capitalism’s role in perpetuating poverty among ethnic minorities. After the 2008 financial crisis, austerity policies were introduced, cutting funding for social services, welfare programs, and public housing. These cuts disproportionately affected low-income communities and ethnic minorities, who are more reliant on public services due to systemic economic disadvantages. A report by the Runnymede Trust highlighted how austerity worsened racial inequality, with Black and minority households experiencing higher levels of poverty and destitution as a result of reduced access to benefits and social support. Instead of addressing the structural issues that led to the crisis, such as deregulation and financial speculation, the government chose to protect capitalist interests by shifting the burden onto vulnerable communities, reinforcing cycles of poverty that are more pronounced among ethnic minorities.
The criminal justice system in capitalist societies further demonstrates how inequality is entrenched. Ethnic minorities in Britain face disproportionately high rates of policing, criminalisation, and incarceration, which impacts their economic and social opportunities. Racial profiling and stop-and-search practices disproportionately target Black and minority communities, leading to criminal records that can hinder future employment and social mobility. Data from the Ministry of Justice shows that Black people in England and Wales are almost nine times more likely to be stopped and searched than white people, despite evidence suggesting that these practices have little impact on crime reduction. This criminalisation of poverty and ethnic identity serves capitalist interests by stigmatising marginalised groups, limiting their employment prospects, and justifying further policing and surveillance. As a result, these communities are trapped in cycles of poverty, criminalisation, and exclusion, reinforcing the very inequality capitalism generates.
It is essential to note that capitalist systems often create poverty not only among marginalised groups but also among the working class as a whole. However, minorities frequently bear the brunt due to intersecting racial and economic biases. When social or economic crises arise, minorities are frequently scapegoated to divert attention from systemic issues. For example, in periods of economic downturn, right-wing narratives often attribute unemployment or scarcity of resources to immigration, using ethnic minorities as scapegoats for the failures of capitalist policies. This narrative is rooted in ‘divide and rule’ tactics, encouraging social division that distracts from class solidarity and prevents unified efforts to demand systemic change. By attributing poverty to ethnic or religious identities, capitalism maintains a facade of meritocracy and individual responsibility, deflecting scrutiny from its role in perpetuating economic inequality.
A solution to the inequities engendered by capitalism requires a systemic shift in focus from profit to people. Wealth redistribution policies, such as progressive taxation, universal basic income, and investment in public services, are essential in addressing the structural inequalities that capitalism enforces. Moreover, addressing racial inequality in Britain demands comprehensive anti-discrimination policies and economic reforms that target the roots of poverty rather than its symptoms. Capitalism’s emphasis on accumulation has proven incompatible with equitable development, as it prioritises profit over collective well-being, with ethnic minorities disproportionately shouldering the resultant socio-economic burdens.
Capitalism’s role in creating inequality and poverty is not accidental but fundamental to its structure. The system’s profit-driven nature necessitates a division between those who control resources and those who produce value, leading to an unequal distribution of wealth. Minority groups face additional structural barriers that compound their economic struggles, yet these challenges are too often misattributed to cultural factors or individual failings. A critical examination reveals that it is capitalism, not ethnic identity, that sustains poverty and inequality across generations, making systemic reform crucial for achieving genuine social equity.
