Aeon Based RC- 7 | Verbal Ability (VA) & Reading Comprehension (RC) - CAT PDF Download

In Youngstown, Ohio, the contrast between the renaissance revivalist Mahoning County Courthouse and the modern federal courthouse symbolizes a shift in the region's fortunes. The story of Youngstown's steel industry and its decline is a poignant example of the contradictions inherent in liberalism, particularly when juxtaposed with capitalism.

Judge Thomas Lambros, a key figure in a lawsuit filed by laid-off steelworkers in 1979-80, suggested that the community might have a 'community property right' to the steel mill due to its integral role in local life. However, this suit ultimately failed, highlighting the tension between the ideals of liberalism and the realities of capitalist ownership.

Liberalism promises a society of equals, where personal and political liberties are protected. However, when combined with capitalism, where private entities own production means, this promise seems compromised. The division of labor in capitalist societies leads to a class-stratified society, where capitalists make crucial decisions, often at the expense of workers' autonomy and equality.

The closure of Youngstown Works and the rise of globalization have reignited debates about how society organizes production. Critics from both the left and the right question whether recent legislative efforts truly address the root problems of capitalism. This brings into focus the concept of liberal anticapitalism, which challenges the notion that liberalism and capitalism are inseparable.

John Rawls, a prominent philosopher, argued that even the most humane form of capitalism is incompatible with liberalism's aim of a society of equals. He believed that capitalism inherently creates a class-based society and division of labor that undermines social equality and political liberty. Rawls's critique focuses on the obstacles that a class-stratified society poses to a genuinely cooperative and emancipatory liberal society.

Rawls identified capitalism's three defining features: private property in production means, market-based access to property, and a labor market where workers sell their labor to capitalists. This structure, according to Rawls, violates the principles of social equality and extensive political liberty. He argued that reforms that leave the capitalist core intact are unlikely to be stable.

Rawls's liberal anticapitalism targets the social domination inherent in capitalism and the political power imbalance it creates. He suggested that addressing these issues requires altering the legal definition of property rights and preventing excessive concentrations of property and wealth.

In conclusion, Rawls's critique of capitalism underlines the need for a moral compass in addressing the challenges of political economy. He envisioned two possible just regimes: a property-owning democracy and market socialism, both aiming to balance private ownership with social equality and political liberty.
Q1: What was the central issue in the lawsuit presided over by Judge Thomas Lambros?
(a) The legality of globalization
(b) The community's right to the steel mill
(c) The protection of personal liberties
(d) The implementation of liberal anticapitalism
Ans: (b)
The lawsuit revolved around the idea that the community might have a 'community property right' to the steel mill, a concept suggested by Judge Lambros. This was due to the steel mill's integral role in the community's life and economy. Options A, C, and D are not directly related to the specific legal issue at hand in the lawsuit.

Q2: According to the passage, what contradiction does liberalism face when combined with capitalism?
(a) Inability to protect personal liberties
(b) Failure to deliver a society of equals
(c) Ineffectiveness in global economic policies
(d) Lack of support for industrial policies
Ans: (b)
The passage highlights that while liberalism aims to create a society of equals with protected liberties, its combination with capitalism, where private entities control production, leads to a class-stratified society. This undermines the liberal goal of equality, as capitalists often have disproportionate power and decision-making authority over workers.

Q3: What does John Rawls identify as the core features of capitalism?
(a) Market-based economies and political liberties
(b) Private property in production means, market-based access to property, and a labor market
(c) Globalization and liberal economic policies
(d) Social equality and extensive political liberty
Ans: (b)
Rawls defines capitalism by three main features: private property in the means of production, allocation of access to property primarily via markets, and a labor market where workers sell their labor to capitalists. These features create a class-based society and division of labor, which Rawls argues are antithetical to the ideals of liberalism.

Q4: What is the primary concern of Rawls's liberal anticapitalism?
(a) The inefficiency of capitalist economies
(b) The social and political inequalities created by capitalism
(c) The decline of personal liberties in capitalist societies
(d) The failure of globalization in capitalist systems
Ans: (b)
Rawls's liberal anticapitalism is primarily concerned with the social and political inequalities that arise from capitalism. He argues that capitalism's class-stratified society and division of labor prevent the realization of a society of equals, undermining social equality and political liberty.

Q5: According to the passage, what does Rawls suggest is necessary to align liberalism with its core values?
(a) Strengthening global economic policies
(b) Focusing on personal liberties
(c) Altering the legal definition of property rights and preventing excessive concentrations of wealth
(d) Implementing strict market regulations
Ans: (c)
Rawls argues that to achieve the goals of liberalism, it is necessary to address the issues of property rights and wealth concentration. He suggests altering the legal definition of property rights and taking measures to prevent excessive concentrations of property and wealth, as these are fundamental to addressing the class stratification and social domination inherent in capitalism.

Q6: What are the two just regimes envisioned by Rawls as alternatives to capitalism?
(a) Globalization and free markets
(b) Property-owning democracy and market socialism
(c) Liberal economic policies and social welfare
(d) Technocratic governance and political liberalism
Ans: (b)
Rawls envisions two possible just regimes as alternatives to capitalism: a property-owning democracy and market socialism. A property-owning democracy involves spreading out ownership of productive assets and ensuring robust human capital, while market socialism combines state control of the economy with competition among worker-managed firms. These regimes aim to balance private ownership with social equality and political liberty.