Capitalism is a bit like science, or democracy. Potent, but imperfect as usually practiced. As Winston Churchill said, “Democracy is the worst form of government, except for all those other forms that have been tried from time to time.” He could just as easily have been talking about capitalism. Capitalism is a potent mechanism for improving human well being. But it doesn’t do so evenly, and there are (of course!) lots of opportunities for individuals operating within capitalist contexts to do bad things. And sometimes the blame gets aimed at capitalism itself, at the very idea. The commentary below tackles one such criticism. >>>
LINK: Does Capitalism Cause Poverty? (by RICARDO HAUSMANN at Project Syndicate)
…In poverty-stricken Bolivia, [Pope] Francis criticized “the mentality of profit at any price, with no concern for social exclusion or the destruction of nature,” along with “a crude and naive trust in the goodness of those wielding economic power and in the sacralized workings of the prevailing economic system.”
But this explanation of capitalism’s failure is wide of the mark. The world’s most profitable companies are not exploiting Bolivia. They are simply not there, because they find the place unprofitable. The developing world’s fundamental problem is that capitalism has not reorganized production and employment in the poorest countries and regions, leaving the bulk of the labor force outside its scope of operation…..
What do you think?