Capitalism, Consumerism, and Free Market Ethics Examined

Economists will defend capitalism and the free market system as democratic and beneficial to all people. However, competitive consumerism has a negative effect on society, and there may be alternatives to the way the system currently stands that would have more benefits for every person, not just the wealthy.

Some businesspeople are greedy and do not have a conscience; however, Wilder believes that capitalism does not necessarily require greed. According to Barbara Wilder in her article "Greed Despoils Capitalism," ethical business practices are the only way to ensure that everyone does not come away a loser from business. Wilder believes that Adam Smith, the father of Western capitalism, would be outraged and disgusted by the unethical business practices that corporations have displayed in recent years.

Ethics, dignity, and character are associated, in an ideal world, with wealth and capitalism. Democracy and capitalism are philosophically intertwined, and the American Dream itself depends on capitalism to thrive. Capitalism thrives through the people, regardless of the system at large, and the businesses and jobs created by a capitalistic system provide wealth for all. When big-business CEOs behave unethically, it is not the fault of capitalism but rather a direct dismissal of capitalism's core values. The economy of the future must be based not on greed or fear, but on integrity and care for all people.

While hugely successful entrepreneurs have often been criticized as ruthless, greedy, and unethical, some economists believe that the successful entrepreneurs of American history — such as Ford or Carnegie — are symbols of the free-market system. Many people believe that capitalism is inherently corrupt, and that the spirit of enterprise is equal to the spirit of greed. However, Don Matthews, in his article "The True Spirit of Enterprise," asserts that enterprise is about creativity, building, discovery, and innovation. Economic growth and development cannot exist without individuals creating wealth. The greatest American business leaders have been diverse, unique individuals — a sign that business and enterprise in America is diverse and accessible to all. Without capitalism, America would not have cars, railroads, or computers today.

The behavior of consumers in a free-market system has far-reaching effects. In their article, Joseph Heath and Andrew Potter discuss the complexities of the free-market system. Anti-consumerism has been a very popular philosophy among people of all walks of life, yet statistics show that people continue to be consumerists and keep indulging in consumer goods. Anti-consumerist films such as American Beauty and Fight Club, and publications such as Adbusters, are all widely popular — but they are also part of the very consumerist system they critique. These works present critiques of mass society that appear to be anti-consumer but actually reinforce consumerism.

The theory that capitalism requires conformity to succeed has been very popular, but Heath and Potter argue that it is simply a theory that does not hold up under scrutiny. Competitive consumerism is, in fact, what creates waste. Legislation that would curb the brand wars encouraging competitive consumerism — such as ending the tax-deductibility of advertising expenses — could help address this problem.

David Korten shares his belief that the values of the free-market system are not necessarily consistent with "the good life." Business policies and practices undermine justice and economic stability for the majority of the population. The American economy is not serving both our materialistic needs and our ethical and spiritual ones. Sacrificing the best interests of others — and of the community and nation itself — is what generates wealth and success for the few. Political agendas support this corrupted arrangement.

Korten identifies several myths that sustain this basic philosophy. There is a myth that growth in aggregate economic output is a valid measure of human well-being and progress. In actuality, events such as gun sales to minors and the cleanup of oil spills generate economic activity, yet they are not beneficial to human progress or well-being. There is a myth that technology frees us from environmental restraints on economic growth. However, increased economic output has burdened the environment, and finite resources are reaching their limits.

There is a myth that an open and unregulated "free" market is the fairest and most efficient way to allocate society's resources. In reality, a market economy responds only to those with money and ignores those without, which is not democratic. There is a myth that the only alternative to a free-market economy is a state-planned command economy — yet even in post-World War II America, a democratic process designed a framework of rules for the market. There is a myth that trade agreements are simply about trade, that open economic borders benefit everyone, and that economic globalization is the consequence of immutable historical forces. In truth, most trade agreements are about the rights of corporations, and greater rights for corporations mean fewer rights for individual people.