Capitalism

Capitalism incentivizes pyramid schemes

Capitalism is great. We've all bought a lot of cool stuff thanks to capitalism. Only naïve, ahistorical ideologues want to get rid of capitalism completely.

"In the Soviet Union, capitalism triumphed over communism. In this country, capitalism triumphed over democracy." -Fran Lebowitz

Due to perverse incentives and short-sighted economic benchmarks like GDP, capitalism does not always march in the direction of more happiness and well-being for society.

The Problem(s) With Capitalism

The zeitgeist is keenly aware of the problems with capitalism. These problems have been fixated on to the point where many reject it completely. This type of revolutionary and utopian thinking is well-intentioned but poorly planned. It is possible to move towards economic justice incrementally and democratically as long as we can present a holistic vision that is persuasive to the majority.

When it comes to utilitarian human flourishing, which should be our goal, capitalism incentivizes many beliefs and behaviors that are contrary to this goal. Since money is a proxy for happiness, and becomes a less reliable predictor the further away from poverty you get, a system that successfully maximizes GDP will get progressively worse and improving happiness.

Society needs to align its goals with the goals of its brains.

What would be different about an economy that prioritizes flourishing communities over increased profits? A lot. So much of society is built with profit maximization as the goal, and so much of the culture accepts this as a self-evident inevitability. Regardless of whether people personally believe in profits over people, the metrics that drive institutional behavior do. If the government uses GDP as its meterstick for success, then the culture does, too.

Making this simple change in our goals forms a new generating equation, reflecting a quality of life over quantity of life mindset. Think about how many policy decisions would be reconsidered if the pursuit of Gross National Happiness was as ubiquitous as GDP is today. The change would eventually be radical, but it will be democratic and incremental, not revolutionary.

The Ideal Economy is Mixed

The ideal economic system combines a free market economy for industry and commerce with socialist institutions where the free market incentives break down. Established industries should have significant worker ownership, while startups leverage private capital and entrepreneurship. Strong unions and social safety nets should protect workers and ensure they get a fair share of profits. While this represents significantly more socialism than currently exists in most countries, it still provides plenty of space for the free market to innovate and thrive where it is most effective.

Defining Capitalism and Socialism

In order to bridge the gap between the academic definition of Capitalism and the common understanding and usage of the term, this wiki will considers any system that offers private property ownership and the ability for individuals to buy and sell shares in public companies to be Capitalism. Only when 100% of all capital is controlled by workers or the state should we say that we no longer have Capitalism, only Socialism. Any system that isn't 100% private or 100% public is a mixed or hybrid economy.

Don't Worry--Hybrid Economies Still Have Capitalism

Since any actual economic system has some worker ownership, some state ownership, and some private ownership, we should really consider all of them to be hybrids of Capitalism and Socialism and all debate should be over how much control over capital the state and workers should have relative to the capitalists, and which mechanisms will allow for equitable sharing of capital and profits while minimizing negative consequences (i.e. major social upheaval).

Acknowledging the fact that a mixed economy is still Capitalism even if we were to implement every economic policy advocated by mainstream Social Democrats will go a long way towards easing the fears of the millions of people that have have a Pavlovian negative reaction to anything Socialist.

Making Capitalism Work for Everyone

There are many examples of new corporate governance structures, ethical investment vehicles, and other strategies that seek to bend the incentives of capitalism towards equality and sustainability. Articles, podcasts, and videos with examples of these should go here.

• Jonathan Haidt on Capitalism and Morality
• Ethics, Values and Corporate Governance
• In this Spanish town, capitalism actually works for the workers

Scott Galloway's Professor G Show podcast provides a balanced view of capitalism similar to the perspective being presented here. He celebrates business and success in a healthy way that stops short of monetary addiction.

Much like social drinking can help you bond with your community, creating a successful new business also builds community. When either turns into addiction, they destroys community. Picture your typical private equity firm as the seedy bar from Barfly or a Trainspotting shooting gallery, and you'll have a more accurate analogy for what happens there and its benefits to society.

Drink from the keg of capitalism and be merry, but know when to say when. If you know someone with monetary addiction issues, encourage them to seek treatment.

Monetized Videos Criticizing Capitalism

You can't criticize capitalism without money.

What is Capitalism?

What does "Late Stage Capitalism" Mean?

You Are Witnessing the Death of American Capitalism

Slavoj Žižek: Why There Are No Viable Political Alternatives to Unbridled Capitalism

Bernie Sanders Meets Frankie Boyle - It’s OK To Be Angry About Capitalism

Capitalism in Music

Different cultural norms around the celebration of wealth and monetary addiction can be seen in the evolution of music from the 1950s and 1960s to the present day. For decades, no respectable musician would ever consider having their work played in a commercial. Today, this taboo no longer exists.

Garfunkel and Oates - Save the Rich