The Problems with Capitalism

Introduction:
We have been socialized as a people to accept the rules of capitalism and have been led to believe it is the only economic system that can actually function successfully. This, however, is simply not true. Capitalism has several major flaws that I wish to point out:

1) Capitalism supports inequality.
In a capitalist system, the overall goal is to yield the greatest amount of profit. To do this, a corporation seeks out the cheapest most efficient way to produce goods and services. This done with litte regard for the environment or the well being of humanity. Because of this, a divide is created globally between those who hold power and investment in corporations and those who exist outside this world...the laborers involved with manufacturing and production. So...those who control the means of prodcution gain more wealth, while the rest lose wealth as corporations seek out cheaper resources and labor.

Examples of this can be seen in many modern countries. In the United States, the socioeconomic gap is actually getting worse...and is losing the middle class. In China, although financially the country is increasing in status and wealth...it, too, is facing its largest socioeconomic gap in its entire history.

In laymens terms...for one nation to succeed at capitalism...another must lose.

2.) Overaccumulation of Capital
Yielding capital (or profit) is the ultimate goal of the capitalist system. However, that profit must be reinvested in order to keep the cycle of capitalist prosperity going. To reinvest capital, corporations seek out new markets and new areas in which to invest. The problem lies in the fact that capitalism has grown out of control and as the world becomes more globalized there are less places in which to expand the market. So...what is happening is that profits are being yielded faster than they can be reinvested. It's like a farmer trying to harvest a 1,000 crops, but only replanting a few hundred. This creates instability in the market and can lead to corporations making even riskier investments.

3.) Political power of corporations
Many multinational corporations have grown so large and control so much wealth, that they actually have as much purchasing power and global influence as a nation-state. However, they are not regulated the way states are. Corporations use this power and influence to control congressional decision makers and to push for their own vested interest. So instead of the government being used a means to protect and support the people, it is being used as a tool to build up corporate power.

4.) Environmental Degradation
Manufacturing and production require raw materials (natural resources). However, these raw materials are interconnected with an abundance of wildlife and ecosystems. When they are consumed at such high levels at a such fast rates as modern production, the environment does not have adequate time to replenish the loss. As a result, ecosystems breakdown, including ecosystems which are of vital importance to the human species.

In addition, many corporations use chemicals in the production process, whether it be chemicals used in farm/animal products or chemicals used in manufacturing products like plastics. These chemicals are not thoroughly regulated and can have harmful affects on both the environment and the local peoples around them.

5.) Lack of open, free markets
Capitalism prides itself on the idea of a free market. The idea that by having multiple companies and manufacturers involved with production, the "market forces" will guide prices and production on their own. However, modern capitalism consists of the domination of industry by only a select few major corporations. These corporations use their wealth and power to block smaller competition from ever getting a fair chance in the "free" market. Meaning that competition is eliminated and the domination of the many by the few comes into play.

The Solution:
The power to address the problems of capitalism lies within society itself and starts with you, the individual.

First, when you purchase products at the store...you become the consumer. You are the last link on the commodity chain. If you refuse to buy a product, that is going to affect the profits of a corporation. If a whole group stands up and does the same thing...the corporation will have no choice but to change its policies.

So...do your research. Go online and research environmentally friendly companies and look for companies that have good humanitarian records. Boycott products/companies that bring about inequality and environmental instability.

For example, most chocolate production is accomplished through the use of child slaves (not child labor--child slavery--as in they don't have a choice). Boycotting chocolate would send a HUGE message to those companies and let them know if you want us to buy your product you will have to end the child slavery used to produce chocolate.

Consumer pressure is the BEST way to bring about REAL change...so do the research...get involced...stand up for your fellow human beings and the future of your environment.