Who Will Save the World? Why the Do-gooder Market Capitalism, of Course
Posted: Thursday, June 18, 2009
by Jeff Brown
Inner Projection
Central planning or the byproduct of socialism as many have known for
some time is a failed idea that which has been confirmed by the fall of
the Berlin wall and breakup of communist Russia. So what's the next
best option? Open market capitalism. Better, of course, but certainly
not perfect. So why is it our economic savior? Let's examine the issue
in some detail historically to begin.
When the Berlin Wall came down in 1989, central planning was
exposed for the obvious failure it was and is. Along with the fall of
communist Russia around the same time, thanks to the somewhat hands off
approach of Mikhail Gorbachev (ie: not sending troops in E. Germany or
Poland as they moved toward democracy), communism and central planning
or frozen markets were mostly history. Even China as early as 1978,
South Korea, Hong Kong, Singapore, Taiwan, India and others stepped
into the open waters of the free markets.
Because so much of the world has begun to interact on a large, free open scale this has changed the economic picture considerably. It has not only shifted a significant share of the world's gross domestic product (GDP) to the developing world but has caused a rift of fundamental economic uncertainty as this new world economic order plays out. Economists are still dealing with what is called market "noise" or change that may or may not be of significance (for more on this read When World Markets Collide by Mohamed El Erian).
But what are the specifics of this majority shift to competitive markets? For the obvious, it has created greater savings (undeveloped countries don't have the capitol to do so), health, and wealth. But it has also helped to suppress interest rates and rates of inflation for all developing countries. And according to the Economist, "having grown at an annual rate of 3.2% per head since 2000, the world economy is over halfway towards notching up its best decade ever" (2006).
Bottom line, people want to enjoy life. Open or competitive markets optimize opportunities for people to do things they not only want but need: mobility, interaction, enhancement of self-esteem and self-worth, and general enjoyment of life. The world wide open markets have created an entrepreneurial gold rush where more and more people are creating businesses not only to make money but to express and find themselves. In America, for instance, 1 out of 6 own a business in some form. Through these opportunities people are going beyond just fulfilling the basic needs of sustenance, shelter, and comfort, but they are working toward what Maslow called human actualization. Through open markets people are fulfilling their psychological needs, self-actualizing even obtaining peek experiences.
Certainly there is the problem of the few having the wealth, like in India which ranked 12 th in GDP yet almost 50% of its people live in poverty, but that is a matter of the few being in political control, an issue that certainly has to be addressed by a worldwide community if this free market experiment is to prosper. However, all in all free market enterprise with proper regulation and management can and will be the super hero it is made out to be.
May this do-gooder make us all rich in mind, body, spirit, and soul and less dependent on the state, family, friends and poor paying jobs to provide the basics and to employ the excess in coming to the aid of our fellow man ala Bill Gates.
Because so much of the world has begun to interact on a large, free open scale this has changed the economic picture considerably. It has not only shifted a significant share of the world's gross domestic product (GDP) to the developing world but has caused a rift of fundamental economic uncertainty as this new world economic order plays out. Economists are still dealing with what is called market "noise" or change that may or may not be of significance (for more on this read When World Markets Collide by Mohamed El Erian).
But what are the specifics of this majority shift to competitive markets? For the obvious, it has created greater savings (undeveloped countries don't have the capitol to do so), health, and wealth. But it has also helped to suppress interest rates and rates of inflation for all developing countries. And according to the Economist, "having grown at an annual rate of 3.2% per head since 2000, the world economy is over halfway towards notching up its best decade ever" (2006).
Bottom line, people want to enjoy life. Open or competitive markets optimize opportunities for people to do things they not only want but need: mobility, interaction, enhancement of self-esteem and self-worth, and general enjoyment of life. The world wide open markets have created an entrepreneurial gold rush where more and more people are creating businesses not only to make money but to express and find themselves. In America, for instance, 1 out of 6 own a business in some form. Through these opportunities people are going beyond just fulfilling the basic needs of sustenance, shelter, and comfort, but they are working toward what Maslow called human actualization. Through open markets people are fulfilling their psychological needs, self-actualizing even obtaining peek experiences.
Certainly there is the problem of the few having the wealth, like in India which ranked 12 th in GDP yet almost 50% of its people live in poverty, but that is a matter of the few being in political control, an issue that certainly has to be addressed by a worldwide community if this free market experiment is to prosper. However, all in all free market enterprise with proper regulation and management can and will be the super hero it is made out to be.
May this do-gooder make us all rich in mind, body, spirit, and soul and less dependent on the state, family, friends and poor paying jobs to provide the basics and to employ the excess in coming to the aid of our fellow man ala Bill Gates.
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Top-level comments on this article: (7 total)Hear hear! Great article Jeff. I can't imagine any other earthly entity that has done more good for society than capitalism.Yes, unless you're one of those people who yell things like "Capitalist pig!" Those guys have their own agenda. But when properly regulated (and we know what happens when it's too hands off--see early 90s, 2007, 2008) and managed, it can do a lot of good. Not perfect but it's the best tool we have for giving as many we can a path to wealth and betterment.
Very well written, Jeff. I agree with you, and yet there are many (too many, actually) who believe the only way to wealth is through theft. That is, the rich only get rich on the backs of the poor. Sad it is, to think here we are in the 21st century and people still do not understand that capitalism is directly tied to free will. I certainly hope we in America have a chance to practice capitalism in the coming years.Yes, people should look at the fact to see all the good its done not just the negative, which in actuality is minimal. Americans should just look around to the great conveniences and opportunity and safety that abounds in this country.
Excellent article Jeff. Great points and so true, it is not perfect, but still the best option. Blessings to you! TeresaThanks Teresa.
It's sad that India's GDP is ranked so high, and, yet, the majority of the people live in such povertyYeah, one of the downfalls of those in power not looking to distribute the wealth.
Great article. Well done.I once read in succession the Communist Manifesto followed by Adam Smith's The Wealth of Nations. What I found was that the Communist Manifesto was a rant against rich people and "idealistic" blithering whereas The Wealth of Nations had very detailed explanations and proved how communism could not work before it was invented.Overall, I can only say I agree with you - long live Capitalism. It won't please everyone but at least it is less likely to descend into a despotic regime like in Animal Farm.Yes, the last thing we need is an Orwellian society coming to life. Viva capitalism!
I really enjoyed reading this. I also enjoyed reading about all you have been involved in including comedy. would be interested in reading funny commentaries. thanks!I've written the odd humorous article here and there. Maybe another one is short coming. Thanks for reading.
Hi Jeff.An excellent, informative article. Thank you for writing about the "enterpreneurial gold rush". Thank you for sharing your thoughts.Best regards,NenitaThanks Nenita.
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