Greater minds than mine have addressed the issue of Capitalism, its flaws and future, with greater insight and sophistication than I presume to bring to the subject in these 10 posts. But at the end of the day, or millenium, or whatever, the fate of Capitalism will be determined, not by elegant postulations, but by the simple conclusion of whether it has done more good for society than damage. It don't make no nevermind how much chrome is on the car if the engine don't run. At this time, I submit that there is no reason to believe that Capitalism is immune to the fate of Communism.
But that is not destiny. If Capitalism is to survive in anything approaching its current form, it must evolve to a higher form of consciousness.
First, the Economic Elite must accept that Capitalism is not top-dog in the hierarchy of this country's social structure, improbable as that proposition may appear. Capitalism's place in this country's evolution is beholden to a political structure which in turn was formed by a social structure, largely comprised of a business oriented elite, but an enlightened elite. There is no evidence that the current business elite is enlightened, and the social structure has evolved and diversified considerably in 235 years. Capitalism still dominates the political structure and often bends it to its will, but it no longer controls the social structure. A paradigm that gives allegiance only to shareholders at the expense of its other stakeholders invites strong rebuke.
Second, the foundation of democratic Capitalism is an open and dynamic market system based on trust in the integrity of the market. The markets in this country have been rendered dysfunctional by none other than the agents of Capitalism themselves. If current conditions perpetuate, the system will devolve to feudal Capitalism and retreat behind its electronic moats to its 'private equity' castles and continue to hoard what it can from a declining economy. It will also become a more isolated target for the kind of popular unrest that it derides as class warfare. Fewer people will have a sense of stake in protecting capitalist institutions when it becomes glaringly evident that they offer no tangible benefit but an empty mythology of 'hope'. Merely another failed and abusive religion devoid of humanity.
In order to restore markets to their proper functioning in a democratic society, Capitalists must summon the wisdom to recognize the constructive role of good government in regulating a truly competitive and ethical business community. Our current economy is not competitive, but predatory for the purpose of conquest and consolidation.
Third, Capitalists must measure their success by more parameters than return on equity. They decry excessive regulation, but the answer is in their hands. Regulation is society's response to abuse. Whether the regulation is good or bad is a separate and secondary issue. Its necessity is the primary issue. Business which chooses to pursue profit at unjustifiable public expense invites regulation. The more abusive and abrasive its practices, the more emotional the political response, and the worse the likely regulatory product. Pollution is a tax which business imposes on society without benefit of society's consultation or consensus. Pollution takes many forms: environmental, ethical, moral, social. A business that hires illegals to ensure its profits is more criminal than the illegal alien it hires. The profits it reaps from cheap labor are at the expense of society which bears the social costs which ripple like the tossing of a stone in the water.
Finally, the Capitalist elite must come to understand that its wealth is but a transitory score-card. The health of Capitalism is built on the foundation of a growing and stable middle class. Grow the middle class and you grow society's possibilities. Grow the middle class and you build a shock absorber that can better manage the economy's evolutions and periodic disruptions. Capitalism is now strangling the middle class, and in so doing, is commiting suicide.
If the Economic Elite has any wise men among it (wise women are equally welcomed), this would be an auspicious time for them to step forward and lead their peer group to 'A New Consensus'. Capitalism has achieved much good. But its liabilities are rapidly increasing. The paradigm is approaching bankruptcy.
Onward.
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