The Downside of Capitalism

I am a capitalist in the sense that I believe free and open markets are generally the best way to allocate resources, establish societally beneficial incentives, foster wealth creation and help lift standards of living for all. That is not to say that I believe capitalism is the only and best way, or that free and open markets are the only and best way to do something or bring about a rise in living standards.

In fact capitalism and free markets are two different things (but that is a discussion for another day).

Unfettered capitalism and unfettered free markets are not necessarily the best way to do or achieve something for society. And capitalist forces (incentives) often lead to sub-optimal outcomes (externalities) and a hollowing out of society's moral core.

Case in point. Consumerism and the trend toward consumption. Capitalism and modern societies are structured around and predicated upon the phenomenon of growth which is in turn is predicated upon people consuming more things. In the case of the medical profession it has lead from previously people being cared for by their family doctor (whom they trust and respect) to the professionalization of the business and the running of medical practices as businesses (where doctors are incentivized to "treat" people as clients). In that environment, clients (sick people) are treated as consumers and are sold (in a profit maximizing way as possible) a raft of medical "services". I believe this has changed the nature and the essence of the profession - in a not too positive way. The same forces can be seen in education, accounting, law and financial services (and no doubt many other cottage industries which are now businesses).

I say this somewhat facetiously. In the old days "capitalists" were easy to see. They were the robber barons, the natural resource exploiters, the telecom and transportation moguls. They were the landowners, the industrialists. They were the ones who arb'd the poor. These days everyone is a capitalist. Everyone has drunk the koolaid (of consumerism) - and it is not always for the better.