Communitarian Identification of Flaws in Unrestricted Capitalism


(Carl Cohen: The history of capitalism is a history of slavery, child labor, war, and environmental pollution.)

1. The tragedy of the commons I: environmental degradation.

2. Profits maximized by economies of scale (big is better); the drive to monopolization (market freedom as, in the long run, self-defeating).

3. Exploitation of human needs (advertising as exciting baser drives; commercialization of every dimension of life)

4. The inhumanity of markets

 

a. cycles of boom and bust

b. unemployment (endemic at all times; excessive in the bust phase of a business cycle)

c. inflation

d. war (business as war, literally as well as figuratively)

e. occasional insanity of markets: e.g., the Great Depression

5. The tragedy of the commons II: loss of co-operative opportunities (in science, art, exploration, education, etc.).

6. Unjust distribution of wealth

a. unlevel playing field: questionable justice of inheritance, etc.

b. unfair system of distribution (labor as a commodity)

7. Encouragement of selfishness.

 


Alleged merits of (unrestrained) capitalism:

1. Liberty

2. Efficient allocation of resources (prosperity)

a. personal incentive

b. privileged perspective

c. the efficiency of demand


 

Mainstream communitarian (i.e., socialist) recommendations:

1. Unjust distribution of wealth rectified by social welfare programs, inheritance taxes, graduated income tax, etc., and programs such as public education aimed at equal opportunity

2. Encouragement of selfishness mediated by co-operative programs

3. The commons as a co-operative venture (in education, etc., as well as in environmental regulations: everyone comes out ahead)

4. Monopolization prevented by anti-trust laws.

5. Inhumanity of the market.

a. cycles of boom and bust met by government stimulus programs, regulation of the money supply

b. unemployment met by unemployment insurance, job training programs

c. inflation corrected by regulation of the money supply

d. pollution controlled by government regulations

e. war checked by fair business codes and international law

f. harmful advertising regulated or banned

6. Insanity of the market (e.g. the Great Depression) mitigated by activist  government and  central banks.

 


 

Liberty within the limits imposed by making possible the realization of other values, including, in some cases, greater liberty itself (e.g., the discipline of education).