Cause Of The Situation Of Worldwide Advantaged Capital And Disadvantaged Labor And The Countermeasures Of China

According to the theory of the Marxism, the situation of advantaged capital and disadvantaged labor, decided by private ownership of means of production, is really a normality of the capitalist world. However, during the"Golden Times"of capitalism after warⅡ, due to the rouse and opposition of labor and the democratization of politics, the industrialized countries universally optimized the social insurance to coordinate the relationship between labor and capital. On this background, the advantage of capital was restrained, and the interest of labor was safeguarded well, thus that was a relatively harmonious period between labor and capital. Since 1980s, ongoing economic globalization, characterized by the free flow of capital and integration of market, caused the expansion of free flow of international capital as well as the rising demand for capital in developing countries, naturally making capital in an rising advantaged place and labor in an rising disadvantaged position due to their inconvenient movement. Furthermore, the writer defines this prominent phenomenon as"the worldwide situation of advantaged capital and disadvantaged labor".In this paper, the writer mainly researched the causes of the worldwide situation of advantaged capital and disadvantaged labor. There are four main reasons, which lead to this situation. Firstly, the free movement of the international capital leads to a bigger fluctuation in unemployment rate, which results in a higher risk in labor's income. Secondly, the foreign direct investment brings about inequity in human capital in a country, and widens the wage gap among people, so make the non-skilled workers disadvantaged. Thirdly, the accelerated flow of international capital and the blocked international movement of the labor make the labor in an inferior position. Fourthly, the decline in unions'densities reduced the unions'negotiating ability, therefore weakening the rights and interests of labor.China is an important part of world economy, as well as significant impetus in economic globalization, and also China has been affected by the worldwide situation of advantaged capital and disadvantaged labor. Although the emergence of this situation is inevitable according to our economic analysis, it dose not mean that we have no policy to release its negative effect, and the writer think the government can take measures to protect the labor. Especially for China, the writer give some suggestions to the government, such as utilizing the international capital reasonably, protecting the rights and interests of labor by law, making the labor union work in a more effective way.