Capitalism

The Dominant System: Capitalism and Its Successes

Capitalism has been the dominant economic system on our planet for approximately 10,000 years, since its emergence during the Agricultural Age. This free market system allows individuals or groups to operate independently without government intervention, fostering innovation and growth.

As a result of capitalism’s prevalence, significant improvements have been made in human well-being. For instance, average life expectancy has increased dramatically from 31 years in 1900 to 72.6 years in 2020.

However, despite these successes, our planet is facing an alarming decline in its health and ability to support humanity. Unfortunately, many people remain unaware of this reality, and as a democratic world, we continue on the same path without making significant changes.

Capitalism’s primary objective is to maximise shareholder value. It is about money and nothing else.

It’s astonishing that the will of shareholders hasn’t prioritized considering people, animals, and the planet in guiding the direction of companies. Despite warnings about climate change dating back to the 1930s, discussions on necessary changes have been ongoing since the late 1980s. The first global summit took place as far back as 1996. Yet, year after year, we witness record-breaking global temperatures, alarming species extinction rates, and more. Unfortunately, nothing has changed. Capitalism’s misaligned incentives render it incapable of addressing these pressing issues.

Capitalism’s primary beneficiaries are those who already possess capital, allowing them to accumulate wealth more easily while those at the bottom of the socioeconomic ladder struggle to advance. Although taxation aims to redistribute wealth, the wealthy often exploit loopholes in the tax system to their advantage.

The fall of the Berlin Wall

The fall of the Berlin Wall on November 9, 1989, marked a significant turning point in world history, leading to the end of the Cold War and the collapse of communism as a dominant ideology. This event paved the way for the rise of capitalism globally.

Here are some key factors that contributed to the growth of capitalism after the fall of the Berlin Wall:

End of the Soviet Union: The USSR’s dissolution in 1991 removed a major ideological rival, allowing Western-style democracy and market-based economies to spread.

Globalization: As trade barriers fell, international commerce increased, connecting markets worldwide. This facilitated the exchange of goods, services, ideas, and capital across borders.

Privatization: Many state-owned enterprises in Eastern Europe were privatized, introducing private ownership and competition into previously socialist economies.

Free market reforms: Countries like Poland, Hungary, and Czechoslovakia implemented free market-oriented policies to stimulate economic growth and attract foreign investment.

International financial institutions: Organizations like the International Monetary Fund (IMF), World Bank, and European Union provided support for transition countries through loans, technical assistance, and policy advice.

Investment and entrepreneurship: As markets opened up, entrepreneurs and investors from around the world saw opportunities to establish businesses in Eastern Europe, contributing to economic growth.

The rise of capitalism after the fall of the Berlin Wall led to:

Economic growth: Many transition countries experienced rapid GDP growth rates, with some achieving double-digit increases.

Increased trade: International trade expanded significantly as new markets opened up and existing ones became more integrated.

Rise of multinational corporations: Global companies like Coca-Cola, McDonald’s, and IBM entered the newly open markets, bringing jobs, technology, and management expertise.

New industries and sectors: Emerging economies in Eastern Europe saw growth in service-oriented sectors like finance, tourism, and IT.

However, this period also brought challenges:

Social inequality: The transition to a market-based economy often led to increased income disparities between the wealthy and poor.

Unemployment: As state-owned enterprises were privatized or downsized, many workers lost their jobs, leading to higher unemployment rates in some countries.

Corruption: The lack of effective governance structures and regulatory frameworks allowed corruption to flourish in some transition economies.

Free market economies

Free market economies have several benefits that contribute to their success:

1. Incentivizes innovation: In a free market, individuals and businesses are motivated to innovate and improve products or services because they can profit from their efforts.
2. Efficient allocation of resources: The price mechanism helps allocate resources efficiently by guiding production towards areas with high demand and away from those with low demand.
3. Competition fosters quality improvement: Competition among firms drives innovation, improves product quality, and reduces prices as companies strive to attract customers.
4. Economic growth: Free markets tend to experience faster economic growth rates compared to planned economies or command-and-control systems.
5. Improved standard of living: As the economy grows, people’s purchasing power increases, allowing them to enjoy a higher standard of living with access to more goods and services.
6. Reduced poverty: By creating jobs and opportunities for entrepreneurship, free markets can help reduce poverty rates as individuals have better prospects for improving their economic situation.
7. Increased consumer choice: With many firms competing in the market, consumers benefit from a wider range of products and services at competitive prices.
8. Government accountability: In a free market economy, government is held accountable by citizens who vote with their wallets (by choosing which businesses to support) rather than relying solely on political processes.
9. Encourages entrepreneurship: The freedom to start new businesses and pursue innovative ideas encourages entrepreneurs to take risks, leading to the creation of new industries and job opportunities.
10. Less government intervention: Free markets tend to have less government interference in economic decisions, allowing individuals and businesses more autonomy to make choices that benefit them.

Joyism continues to encourage free markets.

Capitalism has a unrelenting drive for perpetual growth

Capitalism’s inherent drive for perpetual growth is a fundamental aspect of its nature. This growth-oriented mindset has been instrumental in driving innovation, increasing productivity, and improving living standards over time.

However, this relentless pursuit of growth can lead to unintended consequences when the limits of resources, environmental capacity, or social tolerance are reached. In recent years, we’ve seen signs that these limits may be being approached:

1. Environmental degradation: The rapid depletion of natural resources, pollution, and climate change have become pressing concerns.

2. Inequality and wealth concentration: As growth has accelerated, the gap between the rich and poor has widened, leading to social unrest and political instability.

3. Resource scarcity: Depletion of non-renewable resources (e.g., fossil fuels) and increasing competition for renewable ones (e.g., water, land) have raised concerns about sustainability.

When these limits are reached or approached, capitalism’s growth-oriented nature can lead to

1. Unsustainable practices: The pursuit of short-term gains may prioritize profit over long-term environmental and social well-being.
2. Inefficient allocation of resources: As resources become scarce, the market mechanism may not efficiently allocate them towards sustainable uses.
3. Social unrest and instability: Growing inequality and resource scarcity can lead to social tensions, political upheaval, or even conflict.

To address these challenges, some argue that capitalism needs to evolve by:

1. Integrating environmental costs: Accounting for ecological impacts in economic decision-making could encourage more sustainable practices.
2. Promoting inclusive growth: Policies aimed at reducing inequality and promoting shared prosperity might help mitigate social tensions.
3. Fostering circular economies: Encouraging the reuse, recycling, or upcycling of resources can reduce waste and promote sustainability.

Capitalism cannot evolve in such ways

The relentless pursuit of growth and increasing wealth at all costs can hinder the evolution of a capitalist system in several ways:

1. Short-term thinking: The focus on short-term gains and profits can lead decision-makers to prioritize immediate returns over long-term sustainability, making it difficult to invest in research, development, or social programs that might not yield quick results.
2. Inefficient allocation of resources: When the primary goal is growth and profit maximization, resources may be misallocated towards projects with high potential for short-term gains, even if they are environmentally or socially unsustainable.
3. Resistance to change: The status quo in a capitalist system can be difficult to disrupt due to the power held by those who benefit from it. This resistance to change can prevent necessary reforms and innovations that could address challenges like environmental degradation or social inequality.
4. Prioritization of shareholder value over stakeholder interests: In a growth-oriented capitalism, shareholders’ interests are often prioritized above other stakeholders’, such as employees, customers, suppliers, or the environment. This focus on short-term profits can lead to exploitation and neglect of these other important groups.
5. Lack of accountability for externalities: The pursuit of growth and profit maximization can result in a lack of accountability for negative environmental and social impacts (externalities). As long as companies are allowed to externalize costs, they may not be incentivized to adopt sustainable practices or invest in solutions that address these challenges.
6. Inadequate regulation and oversight: The emphasis on growth and profit maximization can lead to inadequate regulation and oversight, allowing harmful activities to continue unchecked. This lack of effective governance can perpetuate unsustainable practices and hinder the development of more equitable systems.
7. Increased income inequality: The relentless pursuit of wealth at all costs can exacerbate income inequality by concentrating wealth among a small elite while leaving many others behind. This growing divide can create social unrest, political instability, and decreased trust in institutions.

The relentless pursuit of consumption perpetuates a cycle of waste and resource depletion, leading to environmental degradation and pollution. The incessant quest for cheaper goods fuels the demand for cheap labor, resembling a form of modern-day slavery. This consumerist culture fosters greed and materialism, prioritizing monetary possessions over empathy for fellow humans and the environment.

As wealth concentrates in the hands of the few, monopolies emerge, stifling competition and innovation. What was once a dynamic economy marked by diverse competition devolves into a landscape dominated by a select few corporations, capable of producing subpar goods at exorbitant prices. These dominant entities engage in anti-competitive tactics, undermining both economic fairness and democratic processes. Examples include media conglomerates shaping public opinion to suit their interests and industrial agriculture exerting political influence to maintain market dominance in specific regions.

Under capitalism, the practice of externalizing costs is common, wherein expenses like resource extraction and pollution are borne by society or the environment, while profits are internalized by the responsible businesses.

Externalities lead to - climate change, pollution, resource depletion, overpopulation, species extinction, habitat destruction, the proliferation of invasive species and social ills such as underpaid and slave labor, or worse.

Year after year, every nation on earth uses their yearly resource budget well before the end of the year. In 2024, the USA consumed it’s allocation in March. This is the Earth Overshoot Day - the date when humanity’s demand for ecological resources and services in a given year exceeds what Earth can regenerate in that year.

Why is this capitalisms fault? Because capitalism demands extracting value, capitalism demands growth at all costs and because everyone believes in it. It has become the new religion.

All humans on earth living under the capitalist system (which is almost everyone on the planet now due to the advancement of western capitalism) are now part of the problem. The relentless pursuit of growth and increasing wealth at all costs has led to a plethora of issues that hinder the evolution of capitalism.

Each individual is now tasked with reaching the same outcome for themselves - to break free from the cycle of consumption, waste, and resource depletion.

This requires a fundamental shift in mindset, prioritizing empathy, sustainability, and social responsibility over material possessions and short-term gains.

The status quo must be disrupted, and individuals must take ownership of their role in perpetuating these problems. By acknowledging our collective complicity in the issues listed above, we can begin to work towards creating a more equitable, sustainable, and just society for all.

And that’s not all - you get two steak knives!

There are even more pressing concerns that need to be addressed. The discussion so far has only scratched the surface of the darker aspects of capitalist systems. For instance, many corporations operating under capitalism have been accused of perpetuating dystopian realities marked by mass surveillance (surveillance capitalism) and the erosion of privacy. This raises serious questions about individual freedoms and autonomy.

Furthermore, we haven’t yet delved into the role that capitalism plays in fueling the war machine. The pursuit of profit and power can lead to a never-ending cycle of violence, displacement, and suffering. Wars and conflicts are often driven by economic interests, resulting in devastating consequences for innocent civilians. This includes not only physical harm but also emotional trauma, hate, fear, and anger.

The impact of capitalism on global conflict is staggering:

• Massive human toll: Countless lives lost or irreparably changed due to war.
• Displacement and migration: Millions forced from their homes, leading to social unrest and economic instability.
• Economic exploitation: Resources extracted at the expense of local communities, perpetuating cycles of poverty.

It’s essential that we acknowledge these issues and work towards creating a more just and equitable world where profit doesn’t come at the cost of human life or dignity.

Let’s leave it at that.

Joyism: Embracing Love as the Key to Unity

We don’t need to revolutionize everything; instead, let’s build upon the progress and benefits that capitalism has brought us. What we truly require is an injection of unconditional love into our lives. By spreading this kind of love, we can bridge the gaps between communities and foster a sense of unity among all individuals.

In this vision, every person loves one another without exception – even those creatures that may seem threatening or toxic at first glance. Yes, it’s possible to love them from a safe distance! The key is to recognize that our capacity for love knows no bounds.

Moreover, many of the psychological struggles we face as humans can be attributed to a lack of love and connection in our lives. By prioritizing love and compassion, we can create a more harmonious world where everyone feels seen, heard, and valued.

Love, connection, and unity are essential components that can bring numerous benefits to individuals, communities, and societies as a whole. Here are some of the most significant advantages:

• Healing and resilience: Love and connection have been shown to have a profound impact on our physical and emotional well-being. When we feel loved and supported, our bodies respond by releasing stress-reducing hormones like oxytocin and dopamine.
• Conflict resolution: Unity and cooperation can help resolve conflicts more effectively than competition or individualism. By working together towards common goals, individuals can build trust, empathy, and understanding.
• Empathy and compassion: When we connect with others on a deeper level, we become more empathetic and compassionate. This fosters a sense of community and encourages us to support one another in times of need.
• Improved mental health: Studies have shown that social connections are crucial for our mental well-being. Feeling loved, supported, and connected can reduce symptoms of anxiety and depression.
• Increased creativity and innovation: Collaboration and unity can stimulate creative thinking and problem-solving by bringing diverse perspectives together.
• Better decision-making: When we work together towards a common goal, we’re more likely to make informed decisions that benefit everyone involved.
• Enhanced sense of belonging: Feeling part of a community or group can give us a strong sense of belonging, which is essential for our emotional and psychological well-being.
• Increased self-esteem: When we feel loved, supported, and connected, it boosts our self-worth and confidence.
• More effective communication: Unity and connection encourage open, honest, and respectful communication, leading to stronger relationships and a more harmonious environment.
• A brighter future: By working together towards common goals, we can create a better world for ourselves and future generations.

In the face of global challenges like climate change, inequality, and social injustice, love, connection, and unity are essential tools that can help us build bridges, foster cooperation, and work towards a more just and sustainable society.

A Simple yet Powerful Starting Point: Considering the Greater Good

To make more compassionate decisions, start by asking yourself this simple question whenever making a choice or considering an action: “Who or what will be negatively affected?” If your answer reveals that someone or something will be harmed, then it’s likely not the right decision. Instead, reframe the problem to prioritize the well-being of all involved.

To truly create positive change, we must also address the pervasive influence of money in our lives. As long as the love of wealth continues to trump love for everything else, meaningful progress is unlikely. We need to gradually shift away from a transactional mindset that pervades even our most intimate relationships.

Joyism: A New Economic System Rooted in Love

At its core, Joyism is not only an ideology but also a new economic system designed around the principles of love and compassion. By recognizing the inherent value of every individual and the interconnectedness of all living things, we can create a more just and harmonious world.

See The Thread Of Life, Joyism and The Harmony Manifesto.