by James Wallace Harris, 10/20/23
This month, several of my friends have separately expressed doubt about the future. I don’t hold much hope either. Our current world civilization seems to be falling apart. Capitalism is consuming the planet, but capitalism is the only economic system that creates enough jobs to end poverty. The only alternative to free market capitalism I can imagine is if we adapt capitalism to an ethical system. So, I’ve been keeping my eye open for signs of emerging ethical capitalism.
Here’s one: “The Workers Behind AI Rarely See Its Rewards. This Indian Startup Wants to Fix That” from Time Magazine (8/14/23). The article describes how AI startups need vast amounts of sample data from other languages for their large language models. In India, many data companies are exploiting poor people for their unique language data and keeping the profit, but one company, Karya, is giving the poor people they employ a larger share of the profits. This helps lift them out of poverty.
Capitalism has two dangerous side effects. It destroys the environment and creates inequality. For capitalism to become ethical it will need to be environmentally friendly, or at least neutral, and it will need to be more equitable. If we want to have hope for the future, we need to see more signs of that happening.
Right now, profits drive capitalism. Profits are used to expand a corporation’s ability to grow profits, and to make management and investors rich. Labor and environmental controls are seen as expenses that reduce profits. For a corporation to be ethical it will have to have a neutral or positive impact on the environment, and it will need to share more of its profits with labor.
Since the pandemic hourly wages have been going up, and so has inflation. If capitalism becomes more ethical, costs for environmentalism and labor will go up, thus ethical capitalism will be inflationary. Some people have gotten extraordinarily rich by making things cheap, but it’s also shifted labor and environmental costs away from corporations onto the government and the public. The price at the store does not reflect the actual cost of making what you buy. You pay the difference in taxes.
For ethical capitalism to come about things will need to be sold for what they cost to make. That will involve getting rid of governmental and corporate corruption. It will involve political change. And it will be inflationary until the new system stabilizes.
My guess is ethical capitalism will never come about. If I were writing a science fiction novel that envisioned life in the 2060s it would be very bleak. Life in America will be like what we see in failed states today. Back in the 1960s we often heard of the domino theory regarding communism. Failed states are falling like dominoes now. Environmental catastrophes, political unrest, dwindling natural resources, and viral inequality will homogenize our current world civilization. Either we work together to make it something good, or we’ll all just tear everything apart.
Civilization is something we should all shape by conscious design and not a byproduct of capitalistic greed.
We have all the knowledge we need to fix our problems, but we lack the self-control to apply it. I have some friends who think I’m a dope for even holding out a smidgen of hope. Maybe my belief that we could theoretically solve our problems is Pollyannish.
I have two theories that support that sliver of hope. One theory says humans have always been the same psychological for two hundred thousand years. In other words, our habits and passions don’t change. The other theory says we create cultures, languages, technologies, systems that can organize us into diverse kinds of social systems that control our behavior.
We could choose better systems to manage ourselves. However, we always vote by greed and self-interest. We need to vote for preserving all.
In other words, we don’t change on the inside, but we do change how we live on the outside. My sliver of hope is we’ll make laws and invent technology that will create a society based on ethical capitalism and we’ll adapt our personalities to it.
I know that’s a long shot, but it’s the only one I have.
I’m working to develop a new habit of reading one substantial article a day and breaking my bad habit of consuming dozens of useless tidbits of data that catch my eye as clickbait. In other words, one healthy meal of wisdom versus snacking all day on junk ideas. Wisdom doesn’t come packaged like cookies or chips.
JWH
