Is There an Ethical Case for Capitalism? Essay

Capitalism

Currently, capitalism has entrenched in the minds of the global community as a leading economic system allowing for intense development in all realms of human potential. Nevertheless, the word “capitalism” evokes negative associations in many people, even among those who succeed in such an environment. This perception is primarily connected with inherent side effects of this system, including the contrast between rich and poor, regularly emerging financial disturbances, crises, and others. This paper aims at arguing that capitalism can be both ethical and unethical and that its direction immensely pivots on participants, especially leaders, and their definite steps.

Brief Description

Before arguing particular positions, it is worth providing the definition of capitalism and describing its fundamental provisions. Capitalism is often regarded as an economic system where private persons own and dispose of property according to their interests, and supply and demand control prices in markets. The most essential feature of capitalism is the incentive to make a profit based on the canonical principles, including private property, self-interest, competition, market mechanism, freedom of choice, and the limited role of the state (Halliday and John 5). In other words, in a capitalist economy, fixed entities such as factories, mines, and railways can be privately owned and controlled, and labor is bought for money in the form of wages and other stimuli. Moreover, capital gains go to private owners, and prices distribute capital and labor between competing uses.

Opposing Views

Presently, public and scientific communities have evolved two main critical views on the influence of capitalism on mankind’s progress. One of them is categorical, stating that this system is the core source of evil and generates all major concerns and problems in society. The proponents of this position are partly right since, undeniably, capitalism considerably promotes economic inequality, market volatility, a high probability of crises, and prolonged recessions. As evidence, they even provide recent apparent examples, mainly the Financial crisis of 2007–2008 and the Great Depression. However, capitalism has made the most substantial contribution to world poverty eradication; namely, over the last 200 years, the global extreme poverty reduced from 85 percent to 16 percent (Bergman 1). Furthermore, the system has significantly favored human freedom, doubled average life expectancy, and become the chief bearers of root scientific and cultural innovations.

The second opinion is that unlike socialism and communism, capitalism cannot be neither ethical nor unethical and does not pretend to definitely solve the vital universal problems. It inherently does not target fulfilling spiritual aspirations or ending poverty, inequality, racism, war, sexual promiscuity, and environmental pollution. Moreover, the free market never promises a blissful future for all of humanity. Nonetheless, many entrepreneurs clearly understand that the prosperity of their companies and the overall business is directly linked to the welfare of people, their purchasing power, and the states of international or local markets. Thus, capitalists have to consider these aspects and bear some responsibility before society.

Answer to the Question

As has been indicated above, capitalism cannot be regarded as a source of misfortunes since it has demonstrated tangible benefit for society, especially by decreasing poverty and stimulating innovations. This system cannot also function independently on the public because capitalists currently play a significant role in social relationships, politics, economics, and national well-being overall. Indeed, great international corporations such as Amazon, Google, Facebook, and many others, possesses tremendous material, technological, and educational resources enabling them to impact global processes and the mind of millions. Herewith, this influence can be beneficial, leading people to a more prosperous, conscious, and equal society or vice versa.

In this regard, it is worth giving several instances that will show the profitability of the ethical behavior for capitalists. The first obvious example is environmental issues, primarily global warming and massive pollution, the main contributors of which are undoubtedly big companies, especially those involved in the mining, chemical, automobile, and electric power industries. Since these organizations are substantially guilty of this problem and have immense capacities, they should be accountable for developing and implementing ecologically friendly instruments and policies. Such an approach will benefit big corporations because ecological catastrophes and calamities strike the whole society, including them.

A charity in all human activity areas, especially those that acutely need aid, can be another promising direction. In particular, companies can invest in creating new jobs for the disadvantaged, support healthcare, and help poor children diversely. An excellent illustration of an organization with high corporate social responsibility is Henry Schein, recognized as a Fortune World’s Most Admired Company and helping nearly 4.5 million children obtain free oral healthcare (Bergman 2). This will definitely result in increased purchasing power, a more qualified labor force, and a more sustainable society.

Conclusion

The paper has argued that capitalism can be both ethical and unethical because its direction immensely pivots on participants, especially leaders, and their definite decisions. In particular, public and scholar communities hold two main critical positions concerning capitalism’s influence on mankind’s progress. One of them is radical, asserting that capitalism is the core source of evil, while another is moderate, claiming that this system cannot be neither ethical nor unethical. Nevertheless, capitalism has made the most considerable contribution to world poverty reduction and technological progress. Moreover, international corporations own tremendous resources, which conditions their substantial social responsibility. In summary, it is worth indicating that governments should assume a role in creating fair market rules via various appropriate regulations and laws to ensure the steady development of social well-being.

References

Bergman, Stanley N. “Ethical Capitalism? It’s Worth a Try.”HuffPost, 2014. Web.

Halliday, Daniel and John Thrasher. “Is there an ethical case for capitalism?”ABC Religion & Ethics, 2020. Web.