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Greed
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Capitalism doesn't create greed. The greed already exists without it. Greed is prevalent in all economic systems. Capitalism may benefit from greed, but if properly instituted it is a system that controls greed.
This is similar to how roads and traffic signals encourage driving, while at the same time encouraging passengers to be safe and organized. Capitalism has rules in place like anti-trust laws, anti-dumping rules and insider trading laws that encourage transparency and fair competition.
The failure of our current system has been that our government, the SEC and international trade partners (i.e. China) have abandoned these rules. Since certain parties have unfair advantages the system starts is falling apart and abuse is widespread. We need to find ways to create more transparency and ensure that everyone has a stake in our system. The net result should be mutually beneficial trade that creates wealth and prosperity to all.
I've heard someone compare it to marriage dealing with lust. Marriage doesn't completely "control" it, but it doesn't deny lust, either. What it does is allow a person to have a basic need met in a way that benefits both people.
To me, the benefit of our society is checks and balances and separation of powers. Politically, we are best when things are mixed. Economically, we work best when we have a "mixed" economy. Pure capitalism seems to end with economic anarchy like we had in a guilded age.
I'm more of a free-market guy myself, but there does need to be procedures to make it work. Pure freedom is anarchy. It's finding the balance between freedom and safety that's a challenge.
Any system that rewards an extractive economy and depends on growth for success promotes greed and ultimately collapses under its own weight.
I'd spell out my whole thesis, but I don't think comment sections can handle 23,457 pages of text.
Cheers!
(I'll be pushing your book soon--I love it!)
I had a feeling this would spark a dialogue :)
I've heard really intelligent ideas on both sides of this issue. I know that a command-based economy typically leads to just as much an extractive economy, so it's hard for me to consider alternatives.
I do see a potential for sustainable capitalism - which might sound ridiculous to some. More shared resources. More local control. Profits still exist, but less speculation. I suppose that's why I'm pegged as a left-leaning libertarian.
I have zero expertise in economics, but I have plenty of opinions about wealth and value.
Capitalism seems to work best when individual players honor two goals: (1) individual success and (2) health of the system.
If my goal as a player in the capitalism game is to add value, then I think it's fair to expect compensation for the work that I do, and to focus on work that is fairly compensated. (Why am I a public school teacher?)
If my goal is to extract the most value possible from the system, then I may feel successful in the short term, but ultimately the system will identify me as a parasite and process me out. Either I need to extract a lot of value very quickly and then get out, or I need to create the appearance of adding value just long enough to get paid, and then get out.
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