The Myth of Capitalism 6

The Myth of Capitalism 6

Yesterday, we discussed why private enterprise is not necessarily more helpful in leading a good life than public services.

Today we will consider why Capitalism needs to be reined in.

Why capitalism needs to be governed

It is often said that Capitalism is the engine of democracy. This may be true. Capitalism is able to generate lots of goods and lots of profits. To the extent that democracy—or any system of living together with others—depends on goods and profits, then Capitalism fills the bill.

But since Capitalism is based on an act of force, as we showed last week, and since force is in itself unjust, it doesn’t make sense that Capitalism should accepted uncritically in society. The whole point of government, as Madison said, is justice. How can any activity rooted in injustice play a role in a just society?

As we saw earlier, the harmful effects of Capitalism’s basic injustice can be mitigated by decent people. So society could allow Capitalism to play a role, provided that its negative aspects were controlled. It would need strict oversight. Someone would have to watch and regulate the transactions of capitalists in order to prevent them from using the force inherent in the system to harm the workers, either intentionally or unintentionally.

If capitalism is the engine of democracy, it needs a governor.


Tomorrow we will see why “job creators” are unnecessary in a decent society.

Until tomorrow, then.


1 comment (Add your own)

1. Tom wrote:
You say force is unjust, so how do you reconcile that with your support of government regulation. The concept of the state is immoral. The state is force. Max Weber defined government at a legitimized monopoly on the initiation of force within a prescribed geographical territory. Anarcho capitalism is the only system in which capitalism actually works well. Government force used againstpeaceful individuals and groups of individuals is what makes our current system poor. How is capitalism force? It is voluntary. If I worker is unhappy he can leave and work somewhere else or start his/her own business, or lobby with other workers to the owner for better conditions. You seemingly would rather be owned by the state than have self-ownership.

13 April 2013 @ 12:59 PM

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