Hi all,
I’m seeing a lot of hate for capitalism here, and I’m wondering why that is and what the rationale behind it is. I’m pretty pro-capitalism myself, so I want to see the logic on the other side of the fence.
If this isn’t the right forum for a political/economic discussion-- I’m happy to take this somewhere else.
Cheers!
I don’t think we know that. Indeed, what we’re currently doing as a species to the environment is unsustainable. But it’s not clear to me how it’s the capitalism that’s the unsustainable part. My understanding is that capitalism is a system which allows us, as a society, to produce things very efficiently, and to distribute resources. It hasn’t failed in that role, has it?
I believe that, for example, if I wanted to open a bookshop, I should be able to. Or that if I wanted to rent a couple of 3D printers and sell widgets, that I should be able to. Or if I wanted to hire some dude on fiverr to write some music to my screenplay, I should be able to. This is capitalism. Do you disagree? This is what confuses me, and why I asked the question-- on my side of the fence, I don’t really understand what it means to be anti-capitalist. Hence why I asked.
Well no need to be rude! Of course I care! And yes, we’re headed towards disaster in terms of the environment. But I don’t understand, like I said above, how capitalism is causing it and how not-capitalism would solve it. We have 7 billion people on the planet and they all need to be fed. Capitalism is the most efficient system we know of to create and allocate resources. Should we… move to a less efficient system? Wouldn’t that be worse for the environment? How does that solve anything? This is my confusion.
This is an interesting question! I’m parsing it to mean “how can the current problems be solved within a capitalist system?”. It’s a good question, and I don’t have a 100% guaranteed answer. But I don’t see that any capitalism alternative has a good answer either, so still I don’t see how capitalism is the “bad guy”.
In any case, my answer is this: A side effect of all of capitalist driven efficient production is that the environment is harmed. Here, I think the governing bodies have failed in their roles: their role is to define what “capital” means and rules of ownership. They haven’t done that for environmental concerns, which is why capitalism isn’t taking it into account properly. My desired solution is that the government could define a “total amount of carbon emissions” that would be allowed by the country as a whole, and then distribute transferrable carbon credits on the open market. This turns “rights to emit carbon” into a form of capital, and capitalism will do what it do and optimize for it.
In essence, I believe that governments have done a bad job of using the tool of capitalism to solve the problem of pollution.
Great analogy! But… have we seen a lower minimum? What’s the rationale behind that system? That’s my question
This isn’t really capitalism, this is production/commerce. This is what capitalists (people who own capital) tell you capitalism is. Capitalism isn’t you buying a tool and using it. It’s buying the 3D printer, paying people to design and build widgets, paying people to sell the widgets, then taking most of the money for yourself. You might say you make and sell widgets for a living, but you don’t. You own a 3D printer for a living, and exploit the people who make widgets for a living.
You can hate capitalism and still make stuff. Anticapitalists usually aren’t interested in taking away your 3D printer. State Communism isn’t the only alternative, and most leftists hate that idea just as much. Some alternatives include worker coops and mutual aid.
I hate that I can work (with others) to build a company from the ground up and have nothing to show for it, because the owner is using us to fund his lifestyle. I hate that landlords can buy up all the homes, driving up the cost to the point no one can afford one, then rent them out and sit on their ass while I pay their mortgage. That’s capitalism. People profiting off of ownership. It inevitably ends with some people owning almost everything, and the majority owning nothing.
Yes, I agree that this should be possible. Of course, if I’m taking too much money, the capitalist system will encourage my competitors to defeat me. Meaning that there a dis-incentive in place for doing bad/selfish things. Sounds like a pretty good system!
Yes I agree! I hate these things too. But capitalism doesn’t prohibit every bad thing. Bad things can still happen under capitalism. I’m just saying that such things are harder to do under capitalism than any other system. For example, you mention landlords have to buy up every home before they can take advantage of you through their monopoly. That’s way harder than other systems, where the government already owns all the homes, and can simply drive up the cost whenever they want :/
When was the last time you voted for your landlord?
That would be the last time I moved, so about a year ago.
Also, I happen to very much like my landlord. This is because they’re heavily incentivized to address my concerns because otherwise I’d leave a bad review which they care about. Examples are: they fixed a couple of times the laundry facilities were broken, they fixed broken windows a couple of times, etc. etc.
EDIT: Actually, you’re making a very good point which I didn’t address properly! You’re saying that voting gives society more power than prices do. This is a good point, but I disagree. I think prices control production more than any government can, because it allows a much more granular decision-making. For example, every single individual can “vote” that their apartment is too expensive by leaving and finding cheaper places, driving prices down.
I’m glad you have enough financial stability where you can pick and choose your landlord. It’s unfortunate that there are plenty of people who can’t “vote with their wallet” on account of not having all that much cash in there. And plenty of landlords who don’t fear bad reviews because there’s no place they can even be reviewed at, and even if they were to receive such a review housing is an inelastic good and in too short of supply for people to be picky about it.
Additionally, the government has no incentive to charge you more that what it costs to run public housing, whereas the landlord has a profit motive. Even if the government charges you more than how much it costs to build and maintain buildings, this money isn’t send to a pit - it is used to build roads, railroads, sidewalks, provide healthcare, and to build so much more infrastructure and provide various different essential services. If you give it to a landlord, it’s used to fund martinis and vacations on Ibiza. What’s the better deal?
Respectfully I think a point that is often missed with your mindset is how your capital is giving you your voting power. Market Socialist policy aims to even out that exact voting power and more labor focused socialism does the same without market forces. The issue is the hoard and the power that hoard is giving individuals (and firms) over us.
I’m in a similar position to you and I can see many of these policies would hurt me directly, but can also see the historical patterns and current material conditions. We need to build a future for everyone, everyone who agrees with that is a socialist if you argue with them long enough
The TLDR:
They hate capitalism because they’re losers and they think that under a different system they wouldn’t be such a loser. But they would be.
You’d like Marxism. The whole point is that Capitalism is our dominant ideology because it was more efficient than feudalism, but now e have the tools to build a system more efficient than capitalism and we should build that instead. Capitalism is the most efficient system we’ve built so far, but it’s very obviously not the most efficient system we can build.
I don’t see how that’s obvious. Can you give me the rationale for this other system?
The rationale for capitalism is, essentially, the information problem. Basically, no one person has enough information to decide where a society’s resources should be distributed. An analogy I’ve heard is: how should society decide whether they should build a bridge or a tunnel (one takes more wood, the other takes more steel)? The answer is extremely complicated, depending on society’s capacity for producing wood and steel, people’s desire for either a bridge or tunnel, and future expectations of the need for wood or steel. The answer is given by prices, which encode this information and incentivize making the right choice.
If wood is cheaper, it means there’s more wood available and no one expects a huge need of wood to pop up soon. The same for steel, labor, land, and all the other resources that go into building a tunnel or bridge. Society is incentivized to build it for the lowest cost, which also happens to be the most efficient way to do it.
Is there a system which can do better? Would love to hear about it.
And also, I’m very scared when people suggest “down with capitalism!” because it’s a pretty decent system and I worry about tearing society down unless we have very good reasons to believe it’ll be better for it.