Posts Tagged ‘ethical


The Myth

Perhaps the greatest lie originating (and arguably, perpetuated by) Capitalism is the idea that the wealthy are wealthy because they are intelligent, disciplined, and hardworking and the poor are poor because they are ignorant and lazy. As a result, if a man in a business suit and flawless grammar knocks on your door and asks if he can use your bathroom, chances are you’ll let him. You probably wouldn’t do the same for a man in a ragged bathrobe whose grasp of the English language was sub-average. Indeed, the quality of treatment you offer people is usually determined by what social class they hail from. We make assumptions about people based on whether or not they seem to be poor, middle-class, or wealthy.

Quite simply, we’re bigots.

And not without reason either. If a person is less willing to let a homeless man into his house than a man who is (or at least, seems to be) doing quite well for himself, then the person’s fear is not completely unfounded. A wealthy man has less reason to rob you than a poor man. Crime rates, alcoholism, and drug abuse are highest among the lower classes. Likewise the poorer classes tend to have the lowest levels of education. Statistically speaking, yes, you are more likely to be mugged by a poor person than a rich one, but so what? Bigotry is never tolerable, no matter what. So what if you’re more likely to be mugged if you get a poor guy into your house instead of a rich one? You don’t know either man. Maybe the man in the bathrobe is an honest, honorable person who’s had a run of bad luck. Maybe the man in the suit is a sociopathic murderer or a con artist. Judging people according to how wealthy they are is, no matter how you look at it, wrong!

So why is it that we’re prejudiced to trust the middle-class and wealthy rather than the poor? Is it because the poor are ignorant and criminal while the wealthy are intelligent and decent? Of course not! The poor aren’t poor because they’re criminals; the poor have high crime levels because they are poor. Sure the poor man is more likely to mug you, but is that because of him or the fact that he’s cold and hungry? Obviously there are those who are poor because of their own issues- all humans have a propensity towards greed and indolence. At the same time, it is ridiculous to claim that the poor are only poor because they’re lazy. It’s the poorest of the poor who have the heaviest workload. Across Africa, Asia, Latin America and yes, even Europe, Australia, and North America there are millions of those who for ten hours a day for wages of less than a dollar a day! There’s a reason we call them the Proletariat– the working class! It’s because they’re the ones doing all the actual work. They do the farming, the mining, the sweeping, the building, the cleaning, the producing and manufacturing! Why on earth would we even dare to consider these people to be lazy?

Because we’re lazy.

As I’ve said, humans are lazy. More often than not we don’t take the time and effort to investigate something for ourselves; we simply make assumptions or believe whatever our leaders and the media feed us. Since the poor are poor and unable to afford decent (if any) healthcare, we immediately assume that the poor are simply dirty. Since the poor can’t afford decent (if any) educations, we immediately assume that the poor are ignorant and stupid. Since the poor are poor and can’t always afford food/medicine/etc., many are forced into lives of crime- we immediately assume that the poor are naturally criminal. But laziness isn’t the only reason we don’t ask why the poor live in poverty.

Humans are also naturally arrogant. The idea- no, the myth– that the poor are poor because they are lazy makes us feel better about ourselves. We’re where we are because of our efforts! We’re wealthy because of our intelligence, our skill! We’re where we are because of our work-ethic, our self-discipline, and our decency!

Egotistical lies.

We’re where we are because of our own efforts and the efforts of our parents and their parents before them and because of the state of the world we live in and the class we were born into. Personal effort makes up about ten percent of it- the rest is accident of birth and dumb luck. A person pulling himself to the top from nothing is such a rare event that we make a major Hollywood film out of it. If you’re born poor, chances are you’ll stay poor no matter how hard you work unless you get not one but a whole chain of lucky breaks. If you’re born into a middle-class family, you’re probably going to stay middle-class unless you get a bunch of lucky breaks (though less than if you were poor). If you’re born into wealth and privilege than you haven’t done anything to deserve your life and don’t have to do anything to maintain it. Like I said, it really comes down to accident of birth. If you’re lucky, you’re wealthy, if you’re not, you’re poor and probably will be poor for the rest of your life. The Caste System isn’t exclusive to Hinduism.

So in short, don’t believe in the fairy-tale that the wealthy are the best of society and the poor are the worst, or that the poor are poor only because of their own efforts. We are, for the most part, fixed in our place by statistical chance- individual effort has very little effect on us.

It isn’t fair, is it? Only a sadist or an idiot could honestly state that this is an ethical system. Most of us simply shrug our shoulders and say that “life isn’t fair” or “that’s just the way things are…”. I say that when someone’s been murdered, we can’t stick our hands in our pockets and say “life isn’t fair”. I say that when any injustice has been committed, no matter on what scale, the only ethical course of action is to establish justice. Yes, life isn’t fair- but maybe that’s because no one’s doing anything about it!


Et Vox Dei… (Part 2)

In the previous post, I described human nature and the supply-and-demand system- specifically how the supply-and-demand system is flawed since many of the demands that humans make should never, never be supplied. This of course goes against the fundamental principles of Capitalism, bringing up yet again the question of whether or not Capitalism and morality are compatible. Now there are two solutions to this issue (1) do as some (such as Ayn Rand) have done and redefine morality or (2) attempt to replace Capitalism with a system that can co-exist with ethics.

It is frequently said of Communism that the theory was based on the idea that humans are perfect- that Communism expects people to put away sin and selfishness and work solely towards the benefit of the whole. On the contrary, Communism was created because of human envy, murderousness, and depravity. It is because humans have a natural tendency to demand genocide, gluttony, and greed that Communism was created as a way of combating injustice, racism, exploitation, and imperialism.

For you see, therein lies the greatest difference between the Capitalist and Communist code of ethics. Capitalism fully acknowledges humanity’s issues- the greed, the  hate, the fear. Capitalism takes an almost-casual “come-as-you-are” attitude. Greed? Greed is a natural human feeling, don’t fight it, use it. Deception? Deception can be used against your fellow competitors to get them to slip up- deceive away. In short, selfishness, self-interest, and egoism aren’t treated as vices but rather as assets.

Communism, on the other hand, demands more of humanity than to act according to our base appetites. Just because Marxism accepts humanity’s inherent evil as natural doesn’t mean it considers it to be acceptable. Not remotely. Communism has no easy way out- there’s no cheating or deception and greed is never rewarded. If we take away greed then how do we motivate humanity to better itself, to be more than just animals in the jungle? A love of doing things for their own sake, a love of justice, a love of truth. Freedom from greed, is what is truly needed, not slavery to our weaknesses. And to those who would state that attempting to advance humanity beyond what we have now is a blasphemous attempt to become gods, I simply respond “I’m not a theologian but isn’t that what God would want? I doubt- as Galileo did- that the same God who has endowed us with sense, intellect, and reason would have us forgo their use!”. All in all, Capitalism states that humans ought to be greedy while Communism states that humans should be more- the voice of the people is not the voice of god. I for one would rather have a system that matches morality, than have to shred morality to make room the system.


The Many Faces of Capitalism

Throughout the blog I have been discussing various aspects of Capitalism, however, one must keep in mind that Capitalism isn’t so much an economic theory in and of itself but rather a general category of economic theories based around capital (money). For one to describe Capitalism without making note of the various schools of thought within the system would be the equivalent of describing Christianity without mentioned the beliefs of Catholics, Orthodox, and Protestants, or describing warfare without noting the invention of gunpowder. So, in the interests of clarity, listed below are the descriptions of the major classes of Capitalism.

Classical Capitalism

While the actual term “Capitalism” was coined by Karl Marx, the first comprehensive work on the subject of Capitalism (or “commerce”, as it was simply known as) was penned by British economist Adam Smith, in his The Wealth of Nations (considered by many to be the “Bible of Capitalism”. Smith’s essential argument was that humans ought to work in their self-interests which would create a strong and healthy society. Smith stated that if one person owns a product and attempts to sell it, the purchaser will buy it for whatever he deems it to be worth, leaving both seller and buyer richer and happier than before their transaction. Throughout his work, Smith advocates this concept of self-interest as the foundation of commerce, stating that “We address ourselves, not to their humanity, but to their self-love, and never talk to them of our own necessities, but of their advantages.”. Additionally, Smith claimed that it is in the best interests of the economy and the government for the government to interfere as little as possible with the economy (see “Free Trade” below).  Today, Adam Smith is viewed by many as the founding father of Capitalism and one of the most important economic theorists in the history of the world.


Laisseiz-faire (literally “Hands-off” or “Let-do”) can perhaps best be described as an aspect of Capitalism (Classical Capitalism, to be precise) rather than a school of Capitalism. Based on the works of Adam Smith, Laisseiz-faire is a philosophy that states that the government should never interfere or attempt to regulate the economy which- according to the advocates of Laisseiz-faire- functions best without outside influence. While developed separately from Adam Smith, the philosophy of Laisseiz-faire and Classical Capitalism are often combined or associated with each other. While Smith primarily objects to government tariffs, Laisseiz-faire has historically opposed government interference in the form of anti-monopoly laws, minimum wage, and unions.

Christian Capitalism

While the US and much of Europe has never had any theocratic rule since the end of the Renaissance, it is undeniable that in the West, a Christian concept of Capitalism has existed for some time. Of course, this “Christian Capitalism” by no means applies to all Christians, but the fact remains that this philosophy does indeed exist. Christian Capitalism attempts to reconcile the self-focused, competitive tenets of Classical Capitalism with the rather community-focused, anti-materialist teachings of the Christian religion. The end result is what one might call a “moralistic Capitalism”, where competition and materialism do exist, but are tempered by ethics. Those within the system are free to make a profit, but gouging the buyer, deceiving the competition, or tricking the seller is considered to be unacceptable. Charity is advocated but not mandated (as opposed to other religious economic theories to be discussed later). While this form of Capitalism is often considered to be the ideal, there are many split on issues of what is and is not moral (what are the limits when trying to outsell a competitor, for example).

Regulated Capitalism

Contrary to common belief, regulated Capitalism is not a form of Communism or Social but simple government interference. Regulated Capitalism, like Laisseiz-faire, isn’t so much a theory of Capitalism but an aspect of Capitalism. Teaching the very opposite of Laisseiz-faire, regulated Capitalism states that economies require some form of control in order to flourish. This “control” can range from basic laws on minimum wage and worker-safety (such as in post 1940s America) to major government control (as in 1920s and 1930s Italy). While regulation is often confused with Socialism, one must keep in mind that so long as the state does not own the company, the products it sells, and the revenue generated, it does not count as Socialism.

Keynesian Capitalism

British economist John Maynard Keynes could perhaps be described as the most anti-Capitalist Capitalist the world has ever known. Keynes held that Capitalism is “the astounding belief that the most wickedest [sic] of men will do the most wickedest of things for the greatest good of everyone.”, and yet was himself a Capitalist. From a philosophical standpoint, Keynes despised Capitalism and yet saw it as the only option. As a result of this, his economic theory (known as “Keynesian economics”) attempts to protect the public from Capitalism’s costs while maximizing its benefits. Keynes advocates government regulation to protect the public while stating that the public, in order to prevent recessions and depressions, should spend their money without excessive investment or saving. Currently, Keynesian economics are often criticized by other schools of Capitalism as requiring too much collective and government interference.

Ayn Rand Capitalism

Also called “tooth-and-claw Capitalism” “Anarchist/Anarcho-Capitalism”, and “Social Darwinism”, this form of economics focuses on individualism to the point of egotism (or as Rand dubbed it, rational self-interest). Theorized by novelist Ayn Rand (most famously in her books The Fountainhead and Atlas Shrugged), this form of Capitalism is perhaps the most brutal. Rand’s philosophy vehemently opposes all forms of government interference, charitable aid, altruism, and religion. While never explicitly stated in her works, Rand’s economic theory holds that the wealthy and privileged are wealthy and privileged because they earned it, while the poor and proletariat are at the bottom of the economic food-chain because they are lazy or simply choose to be poor. In her book Atlas Shrugged, Rand submits that the wealthy and powerful are the most productive and useful members of society, capable of bringing the world to a sudden halt by going on strike. While Rand’s theories are essentially Capitalist, many other schools of Capitalism look down on Rand’s theories as barbaric, excessively anti-charity, and basically flawed. Despite public criticism, many hold that Rand’s Capitalism is by far the most pure form of Capitalism.

Free Trade

Free trade, like regulated Capitalism and Laisseiz-faire Capitalism, is a concept- not a theory. Free trade essentially is the belief that international trade should not be regulated or controlled by governments. Outsourcing, the import/export of resources and goods, multinational corporations, and international investment are all aspects of Free Trade that its advocates state will produce higher profits, lower production costs, more jobs, more demand, and generally stronger economy.


Protection (perhaps more of a political concept than an economic one) demands the very opposite of Free Trade. Protectionists believe that jobs should go to citizens of the country the company is in, that resources and products should be obtained and produced locally and that massive export and import tariffs should be maintained for the purpose of preserving jobs for the citizens of the country. Protectionists will often also oppose immigration for the same reason.