The underlying problems in the system that make Capitalism harmful rather than beneficial.
Problem: The theories of Capitalism presume the consumer and the free labor populations are rational individuals making rational choices. This is not the case in the present system.
Rational thought is a disciplined process that requires specific education and training. Critical thinking skills are essential but not sufficient in establishing a rational individual. The current education system does not focus on the goal of training rational individuals to participate in the Capitalist economy.
Question: What is the goal of the current education system?
Problem: The mixed market in place leans towards a free market economy where goods and services are created by consumer demand. At present the majority of consumers are not rational individuals making "good" choices that benefit all.
Problem: The investor/capitalist sector of our system are educated sufficiently in critical thinking and can be supposed to be rational individuals making choices that benefit their interests using the profit motive. This motive focuses on the making a profit on investment as good and the loss of return on investment as bad. There are no other moral or ethical considerations in place guide action. The rational choices of the majority are dictated by the profit motive alone.
Problem: There is no demand in the general consumer market for improved education, which discourages private sector investment and innovation in education.
Problem: Creating a rational consumer and free labor population is against the interests of the private sector and the capitalists (owners of ways and means of production) because it will radically restructure and redefine demand in the market in such a way that catastrophic loss of profit will be the short term result. Under the profit motive, loss is bad. The profit motive is the single most influential guiding principle in Capitalism.
Problem: Moral and Ethical systems that guide individual behavior which interfere with consumer spending and free labor demands in such a way that hurts profit are suppressed and vigorously argued against as untrue.
Problem: Owners of ways and means of production and investment capital are using their resources to influence government policy. This is rational self interest behavior guided by the profit motive.
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