Final answer:
Conflict theorists believe that capitalism results in economic inequality with the wealthy dictating the lives of the poor, due to the inherent power imbalances and wealth accumulation in capitalist societies. These power dynamics lead to a stratified society and systemic social inequalities.
Step-by-step explanation:
People who believe in conflict theory claim that capitalism leads to less economic equality because the rich get to decide the actions of the poor. Conflict theory posits that social and economic institutions tend to benefit those who are in positions of power, often at the expense of the general population. This perspective views wealth accumulation within a capitalist society as inherently unequal, leading to a stratification of society where the wealthy hold disproportionate power and influence over the lives of the poor.
In a free-market economy, champions of capitalism argue that the 'invisible hand' of the market leads to efficiency and innovation. However, critics point to historical examples such as the Industrial Revolution, highlighting generalized suffering among the working class and growing poverty and inequality. These inefficiencies and social disparities are attributed to the capitalist mode of production that necessitates a working-class which is exploited for labor, leading to a concentration of wealth and power in the hands of a few. This has significant implications on the distribution of wealth and class systems that emphasize social inequalities, often resulting in circumstances where those at the top are perceived to have earned their status, while the impoverishment of the lower classes is viewed as a result of personal failings rather than systemic issues within capitalism.