by Shah Gilani, Money Morning
Special Report from Money Morning
Last week at the South by Southwest (SXSW) Conference & Festival in Austin, Texas, freshman New York congresswoman Alexandria Ocasio-Cortez (AOC, for short) pronounced capitalism as being “irredeemable“.
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That’s nonsense and, frankly, dangerous talk.
Here’s why capitalism is not irredeemable and what’s dangerous about what AOC is saying…
AOC at SXSW
At SXSW, AOC said:
“Capitalism is an ideology of capital – the most important thing is the concentration of capital and to seek and maximize profit.”
She then added that because this endless quest to improve the bottom line often comes at the expense of people and the environment, “capitalism is irredeemable“.
While capitalism can be called an ideology of capital, at its core, it is not driven by the concentration of capital. It is driven by the allocation of capital across an economy.
Capital is employed by as many individuals who need – and hopefully can access – it to try and create businesses that benefit and serve customers’ needs, and benefits the owners and workers of the businesses who do what they do.
Businesses, while seeking to maximize profits and trying to improve their bottom line, don’t do what they do at the expense of people and the environment.
However, that does happen. When it happens, it makes a difference whether it’s an unfortunate byproduct or as the direct result of bad actors in businesses.
As much as I believe in capitalism, objectively, capitalism is as far from perfect as people are.
Because people can be greedy, selfish, and worse, and run businesses as well, workers can be and are exploited and disadvantaged. The environment can be polluted on purpose, too.
A theoretically pure capitalist system, where people can be themselves, both at their best and worst, is going to reflect mixed character traits in businesses, companies, the conduct of owners, managers, and labor forces. That’s just the human condition – and that’s true no matter if people are capitalists or socialists.
If AOC was to point to capitalism’s faults in terms of the people who use the system to advance their interest while purposely hurting/disadvantaging others; or who deliberately pollute the environment; or who use the system to amass inordinate power over the government and the rules and regulations meant to contain their lopsided power… Then I’d agree with her.
But, throwing the baby out with the bathwater isn’t the answer.
Socialist Rhetoric is a Real Danger
Capitalism made America the greatest nation the world has ever seen, and maybe will ever see.
American capitalism is not irredeemable, but it could use some tweaking. That doesn’t mean twisting it into socialism.
The whole socialist thing is inherent in too much of AOC’s rhetoric.
That’s dangerous.
AOC is a rising superstar, and what she says matters – because the eyes of the nation are on her.
Calling capitalism irredeemable is an attention-getter, and it folds neatly into her socialist leanings.
But the real danger in AOC’s socialist rhetoric is to herself and her socialist agenda.
Because capitalism is fixable it will be fixed, not by socialists, but by moderates who speak to voters about redeeming American glory through free markets, capital allocation, and American enterprise.
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