What’s Wrong With Capitalism?

In the previous post I argued from the standpoint of the inter-subjective theory of consciousness that relationships predicated on domination are — if I may be so bold as to use the term — immoral (there are different methods which one may employ to arrive at immorality, but the basic idea is that, where domination is present, I can neither recognize myself as self nor the other as self, and, insofar as recognition of self-as-self and other-as-self is inherent to our nature, this is a problem.)  Assuming this evaluation is correct, the next reasonable question is, what about capitalism?  In the realm of political theories which would seek to eradicate the domination of the state, there are those who would argue that capitalism must also be eradicated (left-libertarians, libertarian socialists, social anarchists,etc.) and those who maintain that capitalism should be preserved (right-libertarians, minarchists, so-called anarcho-capitalists, etc).

Classical anarchism is rooted in socialism, which, by the end of the 19th century had split between anarchists of various stripes and Marxists (i.e., socialists who do not advocate the immediate elimination of the state).  What the two still held in common, however, was the conviction that capitalism must be abolished.  Marx understood capitalism as boiling down to two essential things: the accumulation of profit and private property.  Based upon this definition, an ethical critique of capitalism follows quite naturally.  While I do not consider myself a Marxist, the following is an excerpt from a paper I wrote over Marx’s critique of capitalism which I feel succinctly encapsulates my argument against capitalism.  The underlying assumption, as will become clear, is that individual human persons are inherently valuable, which immediately problematizes the ethical egoist foundation of capitalism, which reduces the value of individual persons to monetary gain and therefore, in principle, renders such concepts as human rights and social justice tertiary at best, and immoral at worst, should they conflict with the only absolute value which is profit maximization.

The goal of the accumulation of profit may be very briefly shown to naturally result in exploitation and alienation.  Quite simply, when the goal of opening a certain factory and hiring workers to work in that factory is to accumulate profit for the owner/employer, it is obvious that the worth of these workers will be valued insofar as they bring in profit.  Should a particular worker bring in (what is perceived as) too little profit, she will be swiftly let go and replaced by another who can ensure greater profit for the corporate elites, no matter what the negative consequences may be upon the worker who has been dismissed.  Had she brought in more profit, her employment would have been maintained and, essentially, she would have deserved the wages which will afford her food, housing, etc.  What this essentially boils down to is this: if the worker is not monetarily valuable to the employer, she does not deserve to eat, have a home, or any other of the basic necessities.  And not only this, but insofar as labor laws require corporations to spend more money to ensure the safety of its workers, in the absence of such laws these safety precautions will likely not be taken and thus the workers will be subjected to unsafe working conditions.  But because their labor is forced (as a result of the nature of the system), they must continue working under these conditions regardless (assuming they want to eat, of course).  [Note: many will argue that labor is not forced because the worker voluntary gives her labor to the capitalist in exchange for pay, and she could just as soon “take her work elsewhere”, as the saying goes.  This line of argument has problems, however.  First of all, because corporations are in competition with one another, they must produce the greatest amount of product, for the least possible cost, to gain the maximum amount of profit.  As a result, we have no reason to assume, should the laborer look elsewhere for employment, that the next employer would be any better than the first.  Secondly, what often happens is that one giant corporation monopolizes the market and destroys the competition.  When this happens, the laborer essentially has two options: work for this corporation, regardless of the conditions or pay, or don’t work at all, which means, in effect, give up the possibility of food, shelter, and livelihood.  It is a lose-lose situation.  Hence, labor is forced because it is performed out of necessity rather than desire.]

Now, to be fair, all of this assumes a rather libertarian-esque, laissez-faire economy, and one may reasonably argue that we now have laws in place which are meant to protect workers from these very dangers which result from the capitalist system.  However, to the mind of the present author, this is an absurd justification.  To say that the system should be maintained because, though the system naturally results in overwhelming amounts of exploitation and dehumanization, laws have been implemented to, in varying degrees, defend against this exploitation and dehumanization is hardly justification.  When the foundation of a home is causing problems we do not simply patch the roof and repaint the siding and call it good.  So too, following Marxian argumentation, capitalism should be abolished and an entirely new system adopted.

But this is not the only aspect of capitalism which results in alienation.  Private property, according to Marx, “is on the one hand the product of alienated labour, and on the other hand the means by which labour is alienated, the realization of this alienation” (308).  Specifically, a possession becomes private property when it brings profit to the owner, who does not himself work, but rather hires workers to work and earn profit for him.  And once this happens, the worker finds herself in the situation described above.

Obviously, what has been offered is only a brief argument against capitalism, but I think it is sufficient in demonstrating why it is, at best, not readily apparent that capitalism is a desirable system and, at worst, that it most certainly is not a desirable system.  There is much more which could still be said for the violence, oppression, coercion, racism, sexism, classism, etc. which is arguably also inherent to the capitalist system.  However, based upon the above argument, it is not difficult to see how such implications would naturally follow from capitalism.

Coupled with the previous post on inter-subjectivity, then, what has been offered is an argument in favor of a social structure predicated on anti-authoritarianism, anti-capitalism, and egalitarianism — that is to say, anarchism.


2 thoughts on “What’s Wrong With Capitalism?

  1. Right now I am reading Underwood on the sunny veranda of Hotel St. Francis in Santa Fe… what a wonderful vacation!

  2. Pingback: If We Want Democracy, We Need Socialism | Living the Greys

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