By controlling the costs of finished products, merchants could extend their profit margin and control the internal markets. This powerful merchant class provided the capital necessary for the industrialization of European core states. The core regions benefited the most from the capitalist world economy. For the period under discussion, much of northwestern Europe developed as the first core region. Politically, the states within this part of Europe developed strong central governments, extensive bureaucracies, and large mercenary armies.
As a basis for comparison, Wallerstein proposes four different categories, core, semi-periphery, periphery, and external, into which all regions of the world can be placed. The categories describe each region’s relative position within the world economy as well as certain internal political and economic characteristics.
He has written widely on Marxism, socialism and the Korean economy. He is currently a Professor of Economics at Gyeongsang National University and editor of Marxism 21. At the bottom of the wealth pyramid are the 80% of the population who are left struggling to divide up the remaining 7% of the economy.
This permitted the local bourgeoisie to obtain control over international commerce and extract capital surpluses from this trade for their own benefit. As the rural population expanded, the small but increasing number of landless wage earners provided labor for farms and manufacturing activities. The switch from feudal obligations to money rents in the aftermath of the feudal crisis encouraged the rise of independent or yeoman farmers but squeezed out many other peasants off the land. These impoverished peasants often moved to the cities, providing cheap labor essential for the growth in urban manufacturing.
Agricultural productivity increased with the growing predominance of the commercially-oriented independent farmer, the rise of pastoralism, and improved farm technology. relationships between different regions as well as the types of labor conditions within each region. In this model, the type of political system was also directly related to each region’s placement within the world economy.
These include a distribution of People of Color and white people, Christians, Jews, Muslims, and Buddhists, seniors, middle-aged and youth, people with disabilities, cisgender and gender queer people, lesbians, gays, bisexuals, and heterosexuals. The people at the very bottom of the pyramid, those with zero or even negative wealth are primarily children and seniors, People of Color, people with disabilities, recent immigrants, Indigenous peoples, and the poorest white people. The middle 19% of the people control another 50% of the net financial wealth. We will call this group THE MANAGERIAL CLASS because this is the group that manages the needs of the ruling class. They are large business owners, corporate managers, foundation directors, corporate lawyers, doctors, architects, elite university professors, diplomats, politicians, and others who are paid a lot to carry out policies that benefit the ruling class.