06
Jun
09

Capitalism Defined

While Communism may summon unbidden images of dictatorships, oppression, and poverty; Capitalism brings to mind images of freedom, wealth, and luxury. Like Communism, Capitalism does not deserve the reputation it has.

Capitalism, in its simplest definition, is this- a social system in which the end purpose of politics, labor, business (and indeed, life in general) is capital, i.e. money. When a person works, he or she works for the highest wages possible. When a business sells a product, the product is sold for the highest profit possible. When a government acts, it acts in such a way as to create the highest inflow of cash possible (though admittedly, Smith states that the best way for this to happen is for the government to stay out of economy altogether).

According to Capitalism’s advocates, this system creates a healthy, strong society where everyone is rewarded according to their individual efforts and intelligence. The inventive and hard-working move to the top while the stupid and lazy are left behind.

Now in theory this sounds like a good system, but how does it work when put into practice?

In reality, this system creates a survival-of-the-fittest that not even Darwin would’ve imagined possible. Individuals engage in brutal competition with each other for high-paying jobs, businesses war with each other to sell their products and services, and so on. Even Smith himself states that “But man has almost constant occasion for the help of his brethren, and it is in vain for him to expect it from their benevolence only. He will be more likely to prevail if he can interest their self-love in his favour, and shew them that it is for their own advantage to do for him what he requires of them… Every man is, no doubt, by nature, first and principally recommended to his own care; and as he is fitter to take care of himself than of any other person, it is fit and right that it should be so… Every man is… first and principally recommended to his own care… it is fit and right that it should be so.”. In other words, “let each and every person act in his own interests”.

“Harsh but fair.” you might argue, “it is a jungle out there and it’s only natural that the fittest survive.”

That’s all good if you’ve got a steady occupation and decent health- but what if that changes? If you suddenly were fired (maybe the company can make a better profit without you) then survival-of-the-fittest system doesn’t sound so great anymore. If you come down with some disease and the treatment is expensive, what are you going to do if you can’t come up with the cash? This is Capitalism- you can’t expect the doctor to save your life out of human compassion! Or worse yet, what if you’re born to a lower class? In that case, you’re stunted from birth- cursed with a worse education than your bourgeois and elite counterparts (after all, education’s a marketable service- the best educations go only to those who can afford it). You’ll be lucky to get a job at all.

Capitalism still sound great? It gets worse.

With all of this going on, now add on the fact that you yourself don’t count as a person in grander scheme of things. For the employer, you don’t exist as a person but as a source of revenue- a money-machine. If you “break down” or if an “upgrade” comes along, you can be replaced. That means in addition to struggling to keep your head above water in a system where you’re being squeezed for every penny, you have to fight tooth-and-claw with your fellow man for each and every opportunity. If you and a co-worker are competing for sales, what’s to stop the co-worker from lying about the product to potential buyers in order to ensure that the product is sold? He’s making money for himself and for his bosses and if the buyer’s a gullible enough to fooled, then that’s just Capitalism. The smart (or at least, those who could afford an education) and hard-working (or unscrupulous) move ahead and the stupid (or those who couldn’t afford college) and lazy (or those with mental/physical disabilities or those who simply won’t lie and cheat) are left in the dust. And what about cases where a profit can be made from direct exploitation, such as prostitution, pornography, sweat-shops, and pure and simple slavery? Since the end goal is money, is is justified to con a person or to bribe a public official for profit?

Does Capitalism still truly deserve its reputation? I submit that it does not.

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1 Response to “Capitalism Defined”


  1. June 24, 2009 at 5:24 am

    JUST TODAY I SAW A QUOTE (AND OF COURSE I CANNOT REMEMBER IT FOR THE LIFE OF ME) THAT SAID SOMETHING TO THE AFFECT THAT TO BE A CAPITALIST YOU MUST BE GREEDY. AT LEAST I THINK I SAW THAT, MAYBE I DREAMED IT. MAYBE YOU ALL SAID IT THE OTHER NIGHT…GOOD LUCK ON YOUR BLOG.


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