Downside of Capitalism Mueller’s Critics

Virtue of Selfishness? Mueller: if everybody tries to accumulate as much as possible, the general interest is served Mueller: if everybody tries to accumulate as much as possible, the general interest is served But, what actually happens is exploitation But, what actually happens is exploitation Capitalists exploit employees Capitalists exploit employees Capitalists exploit customers Capitalists exploit customers

Capitalism and War At the root of almost all wars are markets At the root of almost all wars are markets The working class does not gain by war, only the capitalists gain The working class does not gain by war, only the capitalists gain Even the American revolution was a war to protect the rich colonists Even the American revolution was a war to protect the rich colonists

Capitalism is Insensitive Capitalism is insensitive to human needs Capitalism is insensitive to human needs For example, we take land out of production when much of the world is starving For example, we take land out of production when much of the world is starving Indeed, markets drive production, not human needs Indeed, markets drive production, not human needs

Capitalism is Short-term Oriented In capitalism, producers are concerned with providing to consumers in the short- run In capitalism, producers are concerned with providing to consumers in the short- run In the process, many long-term harms can be done In the process, many long-term harms can be done Big cars that pollute Big cars that pollute Disappearing farmland Disappearing farmland Extinction of wildlife Extinction of wildlife

Capitalism and Allocating Costs For example, who pays to recycle an automobile? For example, who pays to recycle an automobile? It is costly to recycle an auto because they were not made to recycle It is costly to recycle an auto because they were not made to recycle The producer of automobiles has no incentive to made them easy to recycle The producer of automobiles has no incentive to made them easy to recycle The cost of making the auto is separated from the cost of disposing of it The cost of making the auto is separated from the cost of disposing of it

Market Leader Advantage The market leader in an area has huge advantages over smaller competitors The market leader in an area has huge advantages over smaller competitors This can lead to takeovers, and eventually monopolies This can lead to takeovers, and eventually monopolies The small capitalists is driven from business The small capitalists is driven from business

Capitalism Creates Speculative Drones Too many people make their money by buying and selling stock, which is not doing anything ‘useful’; all they do is speculate in the market Too many people make their money by buying and selling stock, which is not doing anything ‘useful’; all they do is speculate in the market These people are no better to society than welfare bums These people are no better to society than welfare bums

Economic Only Focus Under capitalism, profit becomes the only motive for business decisions Under capitalism, profit becomes the only motive for business decisions We could produce enough AIDs medicine to ‘cure’ millions in Africa, but that would be unprofitable; the drug companies wouldn’t make a profit We could produce enough AIDs medicine to ‘cure’ millions in Africa, but that would be unprofitable; the drug companies wouldn’t make a profit

Ecology and Capitalism Capitalism has no regard for the environment—it is driven by growth Capitalism has no regard for the environment—it is driven by growth It has gotten so big that it is threatening the planet’s environment It has gotten so big that it is threatening the planet’s environment

Gravity of Money Under capitalism, money tends to flow to those with money Under capitalism, money tends to flow to those with money The rich get richer and the poor get poorer The rich get richer and the poor get poorer Rich countries get richer and poor countries poorer Rich countries get richer and poor countries poorer

Capitalist Markets are Unstable Capitalist economies regularly go through recessions and depressions, which hurt many innocent people Capitalist economies regularly go through recessions and depressions, which hurt many innocent people Even fast growth can hurt because it often brings on inflation which hurts fixed income people Even fast growth can hurt because it often brings on inflation which hurts fixed income people