April 29, 2008 - Posts

A kinder, gentler capitalism
It is not always easy to understand the thinking behind calls for a more 'humane' form of capitalism. These calls seem to arise mainly from the left and from corporate leaders who wish to seem compassionate. For example, recently the CEO of a large Finnish insurance company called for 'responsible ownership' and that companies shouldn't seek out only profits. What this exactly means wasn't specified.

A more recent example is a survey commissioned by the SAK (Central Organisation of Finnish Trade Unions), according to which 77 percent of Finns think state-owned (but not directly run by the state) companies should prioritize 'humane factors' over profitability. Again, what this means is left unclear. Which highlights a problem with public perception of the free market (or the corporatism they confuse to be the free market). Most people don't want socialism, but their perception of capitalism is too perverted to fully embrace it. The media offers the people a chimera of capitalism and Marx's theory of exploitation. The idea of mutual benefit is quite foreign to those listening to this message and they have to resort to muddled ideas of general niceness to find solace.

The real world manifestation of this desire for a kinder, gentler capitalism is almost always a call for perpetual job security. The greatest evil the capitalist can do is downsize. This is never done out of necessity in the eyes of the media, but out of 'short-term profit', as if maintaining the jobs would be always profitable in the long run. So it is not unusual for casual viewers to deduct malice on the part of the capitalist; that the capitalist is a shadowy, vampiric character that thrives on the suffering of others.

The end result of all this is rather pleasant for the state. They avoid being blamed for their meddling and they are seen as the hero that rides in and saves the day by slaying or at least reigning in the evil capitalist monster. As to how this results in a more humane capitalism is not clearly evident to me. I guess autarkic primitivism offers job security.

Posted: Tuesday, April 29, 2008 12:10 PM by Libertas est Veritas with no comments