Nonviolence versus capitalism

Although capitalism is compatible with dictatorship, it also thrives in societies with representative government in which certain civil liberties are maintained, at least for most people most of the time. The “creative destruction” by which new products and new markets supersede old ones is facilitated by a moderately flexible society in which there is a degree of open dialogue and adaptation to new conditions. Furthermore, representative government provides social supports and opportunities for some citizen participation that can mitigate some of the worse excesses of capitalism, thus protecting the system against itself. For example, a free press and freedom of assembly together can operate to expose harmful products and damaging policies, thus protecting workers and consumers and ultimately ensuring a greater productive capacity.

Although many harmful and wasteful products are produced, capitalist markets are responsive enough to produce and distribute many largely beneficial products, such as vegetables, bricks, beds and recorded music. Indeed, the amazing range of consumer choice is one of the most enticing features of the capitalist system. In buying screws, breakfast cereals, travel packages or building materials, there are options for nearly every taste and requirement. Obviously there are limits to choice: taxpayers are de facto consumers of “defence services” but do not have a choice between military troops, conflict resolution services and peace brigades. But where choice is catered for by markets, even a small market segment can attract entrepreneurs, such as book publishers or cleaning services for tiny niche markets.

Capitalism judged by principles for a nonviolent alternative

Any challenge to capitalism needs to have some alternative in mind. In chapter 5, some nonviolent alternatives to capitalism are assessed against five principles, which themselves can be viewed as features of an expansive interpretation of nonviolence. Here is an evaluation of how capitalism rates.

Principle 1: Cooperation, rather than competition, should be the foundation for activity.

Contrary to this principle, capitalism is founded on competition between firms and between workers, and discourages cooperation, except for the purposes of competition. It appeals to people’s worst impulses with the claim that pursuing self-interest serves the greater good. However, all available evidence from every field suggests that cooperation works better than competition.[5]

Principle 2: People with the greatest needs should have priority in the distribution of social production

.

Capitalism does not operate according to this principle. Instead, the standard idea is that allocation of the economic product is through jobs: people get rewarded for doing the work to keep society going. This is a sort of meritocracy. However, although jobs do some of the allocation, there’s far more to the story. What actually determines a large proportion of the allocation of goods and services are:

ownership of capital (providing profits to owners);

credentials (providing high salaries to those with the background and opportunities to obtain degrees and enter occupational areas with protection against those without credentials[6]

);

executive salaries and perks (providing high return to managers with more power);

state interventions (welfare, pensions);

unpaid work (housework, child rearing).

Within the framework of the regulated market, solutions to economic inequality include reducing working hours, increasing wages, reducing credential barriers, taxing wealth and paying for housework. However, none of these challenges the foundations of capitalism.

Philosophers who look at “just desert” find little justification for unequal rewards.[7] Why should someone receive more simply because they have rich parents or high natural ability?

There is plenty of production in the world today to satisfy everyone’s needs but not, as the Gandhian saying goes, anyone’s greed. The problem is distribution.[8]

Principle 3: Satisfying work should be available to everyone who wants it.

Under capitalism, this principle is not fulfilled. People are expected to adapt to fill available jobs, rather than work being tailored to the needs of people.[9] A job is typically regarded as an unpleasant activity that is necessary to obtain income for a good life.