The Capitalist Manifesto
POSTED BY: Yulaw
UPDATED: Wednesday, February 1, 2006 08:34
VIEWED: 1943
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A specter is haunting the World - the specter of Capitalism. All the powers of the Welfare State have entered into a "progressive alliance" to exercise this specter: Social Democrats and Greens, UN and EU, bureaucrats and lobbyists, intellectuals and media.
Where is the champion of free markets who has not been decried as a right-wing extremist or worse by his opponents in power? Where are the defenders of the Welfare State who have not hurled the branding reproaches of being greedy, insensitive and uncompassionate against those of us who oppose ever-increasing taxes, transfers and government programs?
Two things result from this fact.
I. Capitalism is already acknowledged by all socialist powers to be itself a power.
II. It is high time that Capitalists should openly, in the face of the whole world, publish our views, our aims, our tendencies, and meet this nursery tale about the specter of Capitalism with a Manifesto announcing its goals.
To these ends, a Capitalist of democratic values has acted to sketch the following Manifesto.
Overview
Capitalism is a trinity of systems in one - an economy based predominantly on markets and incentives, a democratic polity, and a moral-cultural system that is pluralistic and liberal. The free-market system fosters economic growth, social mobility, and self-reliance. Political liberty introduces pluralism, democracy, and the idea of a constitutional government. The moral-cultural system is buttressed by the mediating structures of family, church, and other voluntary associations.
The key component of capitalism is freedom. No other system has produced an equivalent system of liberties, loosened the bonds of station and immobility, and so valued the individual. Capitalism is a system of natural liberty that forms the basis of genuine community. People are free to associate (i.e., to form innumerable voluntary associations). Capitalism destroys old static patterns of community but creates instead a more fluid form of communitarian free association. For example, the corporation (a voluntary association) unites people in a common goal and gives them a sense of meaning and purpose. The cooperative institution of the corporation illustrates that the spirit of democratic capitalism is far from the anarchic individualism that critics might claim it to be. In fact, the system's antidote for social uprootedness is the corporation, in which populations of mobile workers are organized into teams of task-oriented colleagues.
Capitalism assumes pluralism, recognizes that individuals have differing opinions and interests, and allows them to associate in order to further those interests. Pluralism assumes the reality of sin. Pluralism's multiple groups provide a balance of power. The chief purpose of pluralism is to fragment and check power.
Capitalism taps individual creativity and initiative and relies on self-interest, not in the sense of individual greed but to benefit others, the principal other being the family. Capitalism offers an outlet for greed and reinforces habits of prudence, thrift, industry, tolerance, and restraint in everyday life.
Socialism is based on a number of assumptions similar to those underlying traditional society, which helps to explain its appeal in Third World countries. Both socialism and traditional society have "zero-sum" concepts of man, nature, and wealth. This view implies that no gain can be realized without cost. (As an example, no one can earn money without it being taken from someone else). It follows that without strong control by government, religion, and tradition there would be a war of all against all. Control is thus needed to prevent excessive individualism. Both traditionalism and socialism represent rigid, closed societies that stifle individuality and creativity.
Under the socialist view:
(1) capitalists become wealthy by exploiting workers,
(2) capitalist nations exploit Third World nations, and
(3) the elimination of private property will end such exploitation.
Socialism is especially appealing to three g
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A fairly interesting read. A few things popped up in my head as I was reading though:
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Corporations are not political communities, are not at all like states, and that their self-governance is not at all like that of a national government. In states, power is feared and, therefore, checks and balances are appropriate. In government, the point is to prevent leaders from achieving something beyond their stated powers. Checks and balances are not appropriate for the corporation where the point is to create something new - to achieve something. Within a corporation no one should desire a "separation of powers." Whereas in government we need judiciousness and deliberation in the pursuit of general goals in a relatively static organization, in corporations we value instinct, intuition, and quick action in the pursuit of specific goals in a dynamic organization.
While the notion of removing the restrictions within corporation may promote creativity and individual progress, it opens an enormous gap for personal abuse. Corporations, while social structures, are controlled and directed by human beings, and as such, if unchecked, are succeptible to the same vices. With the great power weilded by a corporation - control of 100,000s of jobs, billions of dollars worth of resources, political and social influence, vital commodities and links to other corporations, an uncontrolled individual directing it can destroy all the good the corporation may have created. Relying on the person to be naturally good (social good - help rather than harm), rational (see the benefits of further development of the corporation), empathetic (concern for people up and down the corporate structure) and up to moral standards is idealistic at best. Hoping that the directing person is all those is exactly what makes makes socialism an unexecutable practice. The idealistic approach to individual freedom within a corporation is a fundamental conflict to the realistic capitalist view. There are only two possibilities for a control system - it either exists or it doesn't. A corporation with an internal control system will restrict individual creativity - it's benefit to society will come through much slower, and in some cases - a good idea will be completely ignored. The silver lining is the control system is a barrier which any destructive action (intentional or unintentional) must overcome. And while the corporate world has brought so much to society, the Western society has become completely dependent on it. A collapse due to 'individual liberty' within a corporation has historically wrought much social upheaval and hardships.
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Corporate executives must represent stockholders rather than "stakeholders." A war is still being waged to socialize the American corporation. Business leaders must be wary of modern attempts to recycle socialist ideas. When reformers demand that corporations become more responsible and accountable, they mean dedicated to causes dear to statists such as "saving the environment", restraints on executive compensation, "empowering workers", constraints on internationalization, and the demand for "public interest" corporate directors. Executives must not give intellectual appeasement or funding to the enemies of freedom, including anti-business and special interest groups. To sum it up, corporations serve a moral and social importance in a free society.
While I agree with the view that a cry for "social responsibility" from a corporation is a mask for a special interest, the idea that executives should focus ONLY on the interests of the shareholders is unacceptable in the context of human rights and liberties, social benefit and societal good.
Yes, there are tangible benefits to the shareholders from considering the interests of other stakeholders. But such realizations often come through only after the damage to society has been done. Case in point - James Hardie Industries has used carcinogenic materials to build buildings. Several thousand workers got lung cancer and other mortal afflict
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Quote:Isn't that what collateral damage is all about?
Originally posted by Kaneski:
I cannot imagine any liberal, capitalist society accepting the necessary deaths of individuals, even for the sake of public good.
Just a question.
Terse Chrisisall
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Yulaw:
It’s a very long post, and was interesting reading. I have a few exceptions:
Quote:
Originally posted by Yulaw:
The free-market system fosters economic growth, social mobility, and self-reliance.
I've picked this statement as the opener for my reply as it seems to quite succinctly sum up your thoughts on the Free-market system.
If we take a look at the world at the moment America is the nation that most closely follows the Free-market system, and Britain is a nation that employs aspects of both capitalism and socialism. It is reasonable to assume that if you are correct Britain should have a lower social mobility, and one would assume a greater gap between rich and poor than America.
Unfortunately for your supposition this isn't the case. Social mobility in Britain is higher (though still not great) than America and the gap between rich and poor (which is still a gulf) is also less.
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The key component of capitalism is freedom.
I would say that this is the idealism, how it actual ends up working is (to butcher Orwell) All people are free, but some people are more free than others.
Take a look at 19th Century Britain, a far more capitalist place than today. There was far less restrictions on free enterprise than today. Do you know what you ended up with?
Let’s kick off with some examples. A man works all his life, literally Man and Boy, in a textile mill as a sweeper. He works 12-14 hours a day six days a week (yes these were the working hours). He couldn't refuse because there are plenty of people who are desperate enough for work to work for these hours. After working these hours year in year out, his hand is crushed in the machinery of the automated weave. He can no longer work, and so is useless to the mill owner, who just sacks him and employs another sweeper. The man has no job, and no prospects of getting a job, being essentially a cripple. He dies in a debtor’s prison or a workhouse.
This scenario is played out over and over again through out the 18th/19th centuries, and is nothing to do with a shadowy socialist influence, and everything to do with unfettered capitalism and the free market system. Is this man free?
Consider the food sellers, some of whom (that is the most successful usually) would cut their food with all sorts of nasty substances.
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Frederick Accum circa 1820
Vegetable substances, preserved in a state called pickles, whose sale frequently depends greatly upon a fine lively green color, are sometimes intentionally colored by means of copper. A young lady amused herself by eating pickles impregnated with copper. She soon complained of a pain in the stomach. In nine days after eating the pickle, death relieved her of her suffering.
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Spent tea leaves and coffee grounds could be bought for a few pence per pound from London hotels and coffee shops. The used tea leaves were boiled with copperas (ferrous sulphate) and sheep’s dung, then coloured with prussian blue (ferric ferrocyanide), verdigris (basic copper acetate), logwood, tannin or carbon black, before being resold.
http://www.rsc.org/Education/EiC/issues/2005Mar/Thefightagainstfoodadu
lteration.asp
These people didn't adulterate food because they were particularly evil, or because they wanted to kill people, they did it because it meant more profits for them. They did it for capitalism.
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No other system has produced an equivalent system of liberties, loosened the bonds of station and immobility, and so valued the individual.
Actually you’re mixing up democracy and capitalism a bit here, and they aren’t the same thing and do not need to exist hand in hand. Further more people were actually quite free under feudalism.
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This view implies that no gain can be realized without cost. (As an example, no one can earn money without it being taken from someone else).
Okay so people don’t have to get money from others. Firstly where do companies profits come from? The sky, the tooth fairy?
What are all tho
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There is nothing intrinsic in Capitalism that means that it HAS to be exploitative. Like a lot of things how it works in practice depends on the individuals involved.
For example, while out shopping I stop off at a cafe for a cup of tea. I could have chosen to have something else or wait until I got home. Instead I feel like having tea so I consult the menu, determine the price being asked, decide to buy tea and do so. Some of the cost of that tea covers costs of raw materials, some pays a little towards the wages for the nice young lady that makes the tea, some goes in fixed costs, some is profit for the cafe owner. So who's being exploited? I chose to pay the asking price, if it was too high I would walk by. I am not being exploited. The girl that makes the tea gets paid a wage, making tea is not difficult, cups of tea are not expensive, so it is probable that the girl's wages are modest. However, she is free to find better paying work and the amount she can be paid is related to how much I am willing to pay for tea. In short a result of "market forces." The owner of the cafe probably makes modest profits given the time, effort and capital invested in the business. I dont think however that he was exploited either.
I'm sure that if you look hard enough you can find some part of the global tea business that is not equitable, but the parties involved in this small example of trade have an equitable capitalist relationship.
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We're talking reality, not idealism, and frankly on a small scale like this Socialism also works. All the big capitalist world players are where they are through exploitation of those beneath them. That's how capitalism ends up working in the real world. By saying this is because of socialists, or too much control over the perfect free market system is pure fantasy.
If any nation implemented pure free-market capitalism it would collapse as surely as pure communism, and it would be exploitative.
More insane ramblings by the people who brought you beeeer milkshakes!
The statistics on sanity are that one out of every four persons is suffering from some sort of mental illness. Think of your three best friends -- if they're okay, then it's you.
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I've read the "it's those damned Socialists ruining it all theories before (especially here where some people relabel almost anything "socialist") but you are in danger of making the same mistake with Capitalism.
Capitalisms "problem" is that as a system it's intrinsically neutral, it isn't trying to build a better world or a fairer world or an equitable world, it just sets up a framework to determine the value of commodities and allow them to be traded. Those commodities can be anything from tonnes of steel, to orange juice to man hours. Morally the best kind of trade is an equitable one where both parties have equal power and the agreement is mutually benefitial. However, as stated capitalism as a system is neutral it does not enforce equitable trades and cannot of itself protect the weak from the strong. There is nothing in the system that says they strong must win, but there is also nothing to stop them and no inherent protection for the weak. That's just what it is.
And Capitalism DOES allow for the distribution of wealth, it just doesn't distribute it on the basis on need or social ethics. That it distrubutes it SO unfairly is often the result of distortions of the system rather than the system itself. In addition modern corporate capitalism sets up mechanism that if Al Capone had thought of them would be considered illegal. For example, the modern stock market is based on speculation where things very rarely reflect their real world values. If the mob had invented such a game for a Vegas casino people would have shut it down, You have instruments with an arbitary value being traded where people that own the most effectively set the value. No wonder the Jersey mob runs internet pump-and-dump scams, the mafia knows a racket when it sees one.
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Fletch, that's kinda my point.
The ideal of Socialism is one thing, and the reality is another. I see pure free-market capitalism in exactly the same way, for all you can say:
"All we have to do is remove any stops and regulations and let the capitalists do what they want and the world will be a land of milk and honey" don't make it true.
Frankly a lot of evil can be done within capitalism, that doesn't mean that I think capitalism is evil; it means that I think the last thing we want is a 'free-market revolution', because things aren't going to be better.
All it'll do is give the money and power hungry sociopaths that run this little asylum that we call the Earth more power over the rest of us.
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Originally posted by Fletch2:
And Capitalism DOES allow for the distribution of wealth
Then what is the explanation for 99% of the world’s wealth being in the hands of 1% of the population?
You know I don't think we can call socialism evil for what has happened in Communist/Socialist nations, but I also don't think we should implement it, because WE corrupt it.
Just like WE corrupt capitalism.
I promise you if free-market capitalism is implemented anywhere in the way Yulaw seems to want you're not going to have a very pretty result.
More insane ramblings by the people who brought you beeeer milkshakes!
The statistics on sanity are that one out of every four persons is suffering from some sort of mental illness. Think of your three best friends -- if they're okay, then it's you.
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Quote:
Originally posted by citizen:
Then what is the explanation for 99% of the world’s wealth being in the hands of 1% of the population?
Exactly, it was moved there, redistributed from the various interests that generated it. Capitalism just creates and distributes wealth it isn't nescessarily fair. People with money distort the system to get more money because they HAVE the money to distort the system.
That's the interesting thing about what you can do with capital, it's like magic, it lets you change the governing rules to suit your own agenda. Americans have the right petition their government but who do you think has more success, the 80 year old ex school teacher in a retirement home in Iowa or the guy that can drop Abramoff $10M?
Not capitalism, just plain ordinary graft.
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And pure capitalism makes that process easier and easier and easier the more regulations and stop gaps are removed, so we want to implement pure free market capitalism, why?
I still take issue with capitalism distributes wealth though. It's always held up as distributing it more equally amongst the population, which is plainly not the case. It does concentrate wealth, and although the ideal maybe somewhat more even than the reality of 99% in the hands of 1, that doesn't make it any less concentrated.
More insane ramblings by the people who brought you beeeer milkshakes!
The statistics on sanity are that one out of every four persons is suffering from some sort of mental illness. Think of your three best friends -- if they're okay, then it's you.
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