OP-ED: We are all harmed by the pure greed of “savage capitalism”
Fifteen years ago, a local physician approached me and asked if I’d hire his best friend as a researcher. Even though his physician friend had trained at the Sorbonne in Paris and had been a practicing surgeon for over 20 years in his native country, he could not practice in the United States without undergoing multiple additional years of redundant training. He could, however, be a medical researcher.
One day, Anthony challenged me to look at our economy from his perspective. That conversation illuminated this topic for me. My understanding of capitalism was private ownership that provided the means of production where individuals and businesses generate profit via competition driven by the marketplace. He saw our capitalistic system in a simplistic binary manner that we often either overlook or purposefully ignore. He described capitalism as either social or savage capitalism.
Socially conscious capitalism involves businesses incorporating both environmental and social considerations into their actions. This requires them to look beyond the pure profit motive. Companies and partnerships operating under these moral standards consider things like sustainability, fair trade, employee well-being, educational initiatives, philanthropic partnerships, local economic development, and at least a half-dozen other socially conscious objectives. Companies like Patagonia, Ben & Jerry’s, and Danone have earned recognition for their socially responsible capitalism.
Then we discussed companies that embraced savage capitalism, a business model that prioritizes profits and economic growth over the social welfare and ethical considerations of both the workers and the environment.
Over the years, I had always harbored negative feelings about companies that knowingly embraced inequitable labor practices. We all know of those companies that provide inadequate or no benefits, pay low wages, and treat their employees like chattel. However, because they still deliver products that we want or need at lower costs, we continue to buy from them and make their owners even wealthier. Numerous large banks, chemical producers, and tobacco companies have faced criticism for these unethical practices over the years.
Other savage capitalist-oriented companies depend on the majority of their employees receiving subsidies for health care, wages, and food from our tax dollars, a practice that continues to enhance their billionaire status.
In 2008, America witnessed a glaring example of savage capitalism, where millions of our citizens were financially ruined and lost their homes and jobs. This was predominantly due to a lack of regulation and oversight that allowed large financial institutions to engage in risky unethical behavior without appropriate guidelines. The presidents of those companies remained out of prison and continued to frequent their exclusive clubs without retribution, while many American citizens were both homeless and jobless.
Income inequality, price gouging during emergencies, corporate monopolies, and outsourcing to global markets where labor is exploited all exemplify savage capitalism. Other examples encompass certain unscrupulous, profit-motivated investors in education, prisons, and healthcare. Conditions have been worsened by allowing numerous unethical players to infiltrate these typically not-for-profit organizations.
The pharmaceutical industry mirrors the movie industry. For the most part, they favor blockbusters and actively seek drugs that require lifelong consumption but never lead to actual cures.
We are witnessing our world burn, being swept away by mega-hurricanes, floods, and tornadoes, while glaciers melt and ocean waters rise due to deforestation, depletion of natural resources, and ongoing pollution all supported by a lobbying system that funds favored politicians for re-election, politicians whose votes contribute to this destruction.
Much of the developed world views these practices as inhumane, as the lives of citizens are traded away for quarterly stockholder profits.
We live in a country that puts more emphasis on quarter-to-quarter than long-term outcomes. We support cheap vs. equitable, and we believe the twisted explanations of leaders who embrace a system that needs to be corrected.
Remember, capitalism doesn’t care about fair. It’s up to us to make sure we know who prioritizes savage capitalism over a future for our loved ones-It’s the pure greed that harms us all.
Nick Jacobs is a Windber resident.