Eugene Harold Krabs, owner of the Krusty Krab eatery establishment in Bikini Bottom, once said, “I like money.” Therein lies the American story. For decades of our history, people have inextricably linked the United States with capitalism — the triumphant economic system. However, Gallup, an analytics company based in Washington D.C., recently released a survey that showed that this might be changing with the new generation. According to the poll, as many Millennials and Gen Z — those born between 1981 and 2012 — have a positive view of socialism as have a positive view of capitalism. This is a stark difference from Gen Xers, where the split is 60/40, and Baby Boomers, whose split is 70/30. At the same time, the new generation’s view of “big business” and “free enterprise” is becoming more negative.
There is one notion that all people of all political views agree upon — capitalism is driven by the primal force of wanting more. More wealth. More assets. More money. In other words, greed. From this common knowledge, the difference of opinion becomes this — what should the dominant drive of an economy be? Should a market be governed by the rules of self-interest, as in many western countries? Or should they be driven by other means?
Those who advocate for socialism often argue that capitalist systems are unethical. In essence, redistribution of wealth should go a long way in making free markets more ethical. Upon closer inspection, however, the evidence seems to suggest that capitalism inspires unselfish behavior in its participants. Whether you loathe the coercive excesses of the state or love the practices of private, money-hungry companies, capitalism always seems to lead to greater prosperity for everyone. Almost by accident, it appears that the system characterized by greed turns out to be the most moral of the bunch.
But why just discuss it in principle? Let’s get practical, and a little heartbreaking. Corporations don’t care about you. The primary objective of any firm in a capitalist economy is to make a profit. Every corporate chain has a board of directors deliberating 12 hours a day on how to generate as much revenue as possible. So why is it that companies, especially during the pandemic, are practically shoveling money into the maw of charity? Apple donated 20 million masks to healthcare workers. Facebook pledged 100 million dollars in aid to journalists. Cell phone networks paused monthly fees for essential workers. Beyond Meat donated over one million of its patties to food banks and hospitals, and, most impressively of all, Twitter CEO Jack Dorsey pledged one billion dollars of his own wealth to fight the coronavirus — all in the first months of the pandemic. This is great!
But why care? What do companies stand to gain from this seemingly ill-advised charity? To be honest with you, I have no idea. Other than an elite cabal of C-level executives, no one can definitively say whether charitable giving is actually net positive for a business. But we do have some incredibly compelling evidence: the fact that companies keep on doing it, over and over and over again. But how is this possible? Wasn’t the whole point of capitalism that it’s facilitated by greed? Well, yes. But very often, capitalism encourages benevolent actions. Not because people become nicer when the economy is freer, but because the system is set up in such a way that engaging in generous acts is in everyone’s self-interest.
In a socialist system, we must also remember that it isn’t left up to the individual what is fair and what is not. Say you, dear reader, are in favor of socialism. You believe, generally speaking, that shared prosperity is fairer for everyone. Great! Unfortunately, in this system, it’s the government which gets to decide what’s fair for you. Agents of the state use coercive force to expropriate your assets and to allocate those resources wherever they deem necessary. They determine what’s “moral” using your money without your consent. Nations have used this wealth to wage war, carry out genocide, and commit other mass atrocities. Rarely do the state’s actions line up with the desires of its people.
Thus, we arrive at our conclusion: shockingly, capitalism is the most moral system! And in order to prevent the propagation of a socialist system, that’s what we must continue reminding young people. This free enterprise system, popularized by economists like Adam Smith, has greatly contributed to the prosperity of the United States. And despite all that rabble, the fact remains that capitalism is freedom. You can be an accountant, a nurse, a programmer, a hippie, a mountain climber, a movie maker, a clown, or even a Deerfield student. In socialism, you can only do what the state allows. Doesn’t seem very moral to me.
