Capitalism in America, Part 3

Dear Friends,

In the previous two posts, I have argued that capitalism as practiced in the United States has failed us both politically and economically.  I have also taken the position that the ultimate goal of any economic system must be to advance the economic interests and provide better living conditions for all in a sustainable manner.  In order to achieve this goal there must be a true equality of opportunity. Obviously in some ways there cannot be true equality of opportunity.  We are each born with certain abilities and limitations and not all parenting is equal.  However, as a society we must do all that we can to provide true equality of opportunity.

In my view there are certain things without which there can be no true equality of opportunity:
love and inclusion
food, shelter and clothing
health care
education
security
I want to examine each of these necessities and how they can be provided within a capitalist system.

Love and inclusion
When discussing basic necessities, love and inclusion are often overlooked, but the importance of these necessities cannot be overstated.  Historically, these necessities have been provided by family and community.  In America, we have seen an increase in gang activities, I think because the society is failing to provide people with love and inclusion in more traditional and helpful ways.  If you do not feel loved and included, you cannot achieve your potential, you will not feel the support you need to work to achieve your goals, and you will find no meaning in your life.  A society can be one that welcomes all regardless of similarities and differences, that celebrates diversity.

In the United States and many other countries, we are not inclusive and those in power maintain and enhance their power by dividing and not uniting.  Capitalism as an economic system cannot ensure that all people are loved and included, but capitalism as it is practiced in the United States has encouraged the creation of classes of people with artificial distinctions based on who is "entitled" or who has "earned" while at the same time creating an environment where those with wealth and power (and their offspring) retain and amass more power and wealth and those without (and their offspring) have less and less of each.  This terrible cycle of increasing wealth and power disparity and increasing exclusion of "others" can only be broken by providing everybody with equal opportunity.  To achieve that goal will require a significant change in capitalism as practiced in the United States.

Food, shelter and clothing
Capitalists argue that capitalism is the best way to provide goods and services, that a free market will create and allocate goods and services in the most efficient manner and that competition will ensure the appropriate pricing of them.  If there were such a thing as a completely free market and if everybody had true equal opportunity, I would agree with that argument.  Unfortunately, there can be no logical or intellectually honest argument that there is anything that remotely resembles a free market or equal opportunity in the United States today.

I believe that everybody in the United States should have these basic necessities and that the society should provide them by providing each person with a minimum income with which to purchase them.  I also believe that with appropriate controls, a capitalist economic system could facilitate the creation and allocation of these goods and services.  Today the United States fails miserably in providing these necessities.  Everybody must have good, healthy food; safe, comfortable and secure housing; and clothing that is appropriate for the climate and the society.

Healthcare
The United States spends more per capita and a larger percentage of GDP on healthcare than any other developed country in the world and yet has worse outcomes (here). Clearly a capitalist economic system is not successful at creating and allocating healthcare goods and services.  Consequently we need to move to a Medicare for all type system to provide healthcare for all people.  There are many models around the world for accomplishing this result all of which do a better job than the current United States system.  Some of those systems have care provided by private clinics, hospitals, etc. but in all case all people receive at least a minimum level of health care.

Education
Without great education for all, we can never have true equal opportunity.  The United States today has a system of public education that fails those who are not born with wealth and power and enhances the wealth and power of those who are born with them.  The wealthy can afford to send their children to private schools and rich communities can afford great public schools.  We need all public schools to be great schools.  No capitalist system will do that, the government must provide great schools.
In addition, great and free public education must begin well before a child is 5 or 6 years old and must continue at least through a college degree.  The data is clear that providing early childhood education is critical to long term learning.  It is just as clear that a high school diploma is no longer sufficient to provide access to good, well paying jobs.  The government must provide great free education pre-K through a college degree.

Security
We all need to feel secure in order to do our best.  Security includes the obvious things like police and fire protection and national security which no capitalist system will provide to all so they must be provided by government at various levels.  In addition, we must feel economically and emotionally secure.  Capitalism as practiced in the United States has clearly failed to provide any emotional or economic security to all.  People will feel these kinds of security if the essentials listed above are provided.

While well regulated capitalism can play a role in provided basic goods and services, a capitalist system will never actually provide the necessities for true equality of opportunity.  So why am I not joining the Democratic Socialists of America?  Maybe we will all find out when I write the next post.

Thanks for reading and please comment,
The Unabashed Liberal