Winston Churchill once famously said that "Democracy is the worst form of government, except for all the others." I wonder if we can say the same thing about capitalism? In light of our current economic situation, I've been thinking a lot about how much I hate capitalism as an economic philosophy.
The central organizing principle behind capitalism is simple: greed. Capitalism is premised on use of self-interest to (allegedly) serve the common good. The problem I have with this is that capitalism is mean, selfish, and heartless. It unabashedly preaches the accumulation of wealth as the most important attainment in life. No matter who you have to run over in the rat race, it is worth it if you come out on top. Here's a quote from Brigham Young:
"[Capitalists] put me in mind of some men I have seen who, when they had the chance to buy a widow's cow for ten cents on the dollar of her real value in cash, would then make the purchase, and then thank the Lord that he had so blessed them. Such men belong to the class of Christians referred to on one occasion by Charles Gunn; and, if you will excuse me, I will tell you what he said about them. He said that 'hell is full of such Christians' (Working Toward Zion, pg. 133)."
A good example of what really disgusts me is CEO pay. A recent Washington Post article ("The Blow the Working Class Saw Coming," 02/15/09) talked about hardworking Americans who are losing their jobs even as CEOs make millions. One paragraph speaks the words that millions are asking: "Does anyone really need a $20 million salary? If you have that salary, do you need a bonus? If you take that much, won't somebody else be deprived?" Is it right that in 1985 the average CEO made 40 times as much as the average worker, and today makes over 400 times as much? Do we really think this is a "good" system?
Don't get me wrong, forcing equality on people through socialism is wrong too. But it seems we've been presented with a false choice between capitalism and socialism. Shouldn't we be rooting for a kinder and fairer system than capitalism? Can't we make our society more equal without destroying liberty? I believe that a society full of faith can accomplish this, without destroying an appreciation for business talent. "The gospel does not oppose business ability, it seeks to transform the hearts of those who possess it" (WTZ, pg. 308).
One of my favorite books, which I've been quoting in this post, is Working Toward Zion - a college textbook for my social entrepreneurship class. I like it because it bashes on capitalism and socialism, and provides a third way - a way that views fellow workers as brothers and views business as a stewardship. The authors label this living a consecrated life, with our riches dedicated to the poor - they call such a society a "United Order." The book talks about individual and collective ways we can live the law of consecration - in other words, how to be a socialist in a capitalist world. "Consecration consists not only of financial contributions or physical property put in the storehouse, but in explicit choices to sacrifice, do without, and give of oneself to benefit others" (pg. 182, emphasis added). Such selflessness in antithetical to capitalism, but I believe it is the only eternal economic principle.
So, how can we throw off the shackles of capitalist oppression and move towards a better way? What policies can encourage this instead of encouraging greed? Is Capitalism really the best we can come up with? What are your thoughts?
It's sad that in today's world, if you won't pay a CEO bajillions, you can't get very good people to run your company, because they will go where they can get more. I think your penultimate paragraph has to be our answer: we need to change ourselves first and try to influence those around us and in our communities to live more Christlike economic principles. I don't know that it will every fully happen before the millenium, but I think any improvements will be better for everyone, especially those who make the changes. Of course, you probably won't be blessed financially, but you'll be blessed spiritually etc.
ReplyDeleteI wouldn't mind seeing a little bit more socialist capitalism in America, such as universal healthcare, but I think capitalism is the least bad economic system that can ever be lived by any group of more than about 2 people. Sucks, doesn't it?
You know, I basically agree with you. As I was reading your post, I just kept thinking of how one of our Founding Fathers talked about how the Constitution was only meant to govern a moral people--that it is wholly inadequate for the governing of any other.
ReplyDeleteI think it's true. You're going to have problems when people aren't moral enough to realize that... you know, like you said. $20 million is far in excess of a reasonable paycheck.
I don't think government is the answer, though--the answer has to come from inside the hearts of the people. That's why it's so important that we go on missions and be good examples and so forth. Government legislating things only makes it worse. Example: check out how much our leadership gives every year to charity. I remember reading that McCain gives routinely about 30-40% of his income to charity. Al Gore in 2007 gave $175. I know he could afford more than that. I read a quotation once--I wish I had the book with me so I could say who said it!--but it was some rich guy like the Netflix owner or something who basically defended his lack of giving as "I'm a socialist, and I don't pretend to be a Christian." In my observation, adherence to socialism leads to selfish people who need to be forced to give to others because they believe the responsibility is the government's to care for others. Personally, I think we all have a responsibility to care for each other--and less government intervention would allow us to all to, and inspire us to, help each other a little more.
Saying that "government isn't the answer" is a bit simple, isn't it? I don't think government is *all* the answer - but shouldn't it be *part* of the answer? Can't government create incentives and policies that will encourage good behavior? I think if government remains neutral, the evil part of capitalism wins by default.
ReplyDeleteI thought this was an interesting idea: http://approachingjustice.wordpress.com/2009/02/28/yunus-on-free-market-economy/
ReplyDeleteIn a perfect world, capitalism and socialism would have the same result -- capitalists would give more freely and socialists would work hard even if harder work wouldn't get them a greater reward. Unfortunately, we don't live in a perfect world. Therefore, capitalism is the best system we can have. It works pretty well even when people are selfish. It also preserves freedom, so good people that make lots of money can give to the poor as much as they want. But we need to preserve our freedom in capitalism! Otherwise we become socialistic, people are still greedy, and the system fails.
ReplyDeletehttp://www.fundamentalfinance.com/blogs/socialism-vs-capitalism.php
I don't necessarily agree that capitalism = freedom. It certainly does mean freedom for the rich, but not for those it crushes in the name of the greater good.
ReplyDeleteI agree with you. Capitalism is the worst form, except for all the others that have been tried. This is how I found your blog.
ReplyDeleteI am currently working on a project in Canada that is trying to create a new economic and social system that competes with the current one by creating a new job market for the homeless.
I've outlined the model in my blog.
http://anewplayingfield.blogspot.com/
Would love to know your thoughts.
Wow! I'm glad I'm not alone on this one. I've been thinking like this for a few years now. I was enlightened on this subject when I read "Approaching Zion" by Dr. Hugh Nibley.
ReplyDeleteI most certainly agree with the statement that "Capitalism is the Worst Economic System, Except for..." every other we've tried. I would never consider Socialism or Communism. They're much much worse. But I as a Latter Day Saint (mormon) I cannot understand when fellow mormons defend capitalism without recognizing that it too is evil as well.
I also agree that we are being presented with a false choice between Socialism and Capitalism. You hit it right on the head.
I commend you for this post and I commend most of the comments left here by other people. I'll be keeping tab on your blog. Thanks for posting.
Capitalism’s beginnings are ancient. When the first among Adam’s children wanted more than their siblings it began. It has been at the core of every self-serving endeavor in history, from the Pax Romana to the Viking invasions and every greed- motivated act, in every culture, before or since. The Industrial Revolution took it to new levels, and the modern corporation has made it a sordid art form. There really is only one solution, and only a handful achieved it: The City of Enoch and The People of Melchizedek (as far as we know). So many of today’s saints worry so much about collecting money they forget about the camel and his needle dilemma. Just a thought…
ReplyDeleteI like your comment. Thanks for sharing.
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