Surviving capitalism: Ramesh Shrestha

Populism offers the heartless head; ideology offers the headless heart – Paul Collier

Capitalists have special democratic rights?

In capitalism there is neither a head nor a heart. It is just a winning it all strategy that has swept across the globe. Capitalism is here to stay and the challenge for most people is how to navigate this state for survival. Capitalist economy has reduced human values to tradable goods irrespective of political ideology, if there was any. Even in the most centralised system of governance the consumer market has taken the center stage. Neither the government nor the people are able to protect citizens from the power of the market - the heartbeat of capitalism which continues to create billionaires at the cost of ordinary citizens’ survival. Some of these billionaires are richer than several low-income countries and their political influence is more potent than real politicians and have the capacity to undermine any and all rules of engagements. Is it the democratic right of capitalists? The unrestrained application of AI will further accelerate the income disparity and the wealth gap. Discussions to regulate AI are in progress but there will never be a consensus on what and how much to regulate.

On 2 Jan 2024 the new list of the top ten richest individuals in the world was published with a total asset of $1.47 trillion (increased from $1.17 trillion in Jan 2023). The corporate primacy and the new technology applied in manufacturing and marketing has impacted wealth creation globally with no improvement in wealth distribution. The rich remain immune to inflation, while the poor are affected doubly as their income remains static while the market price continues to hike. How should low-income families survive this skewed economy generated by capitalism year after year?

Our breaking point?

Human society benefited from the industrial revolution and agricultural revolution. Over the past few decades our societies everywhere also benefited from the ‘economic revolution’ brought by capitalism with the spread of urbanisation and umpteen expansion of industrial production aimed at never-enough consumerism. In recent decades information technology and social media became the catalysts in pushing this revolution to a dead end with a widening income and wealth gap. Family, which is our foremost source of social and emotional support, seems to be breaking down under the economic pressure. Is our society reaching a breaking point?

The negative consequences of this skewed economy have affected not just the living standard but even family structures such as couples not having children, which could cause severe manpower shortages in coming decades. There are other reasons for couples deciding not to have children but affordability is certainly a root cause. The economy has even impacted the very root of social network, family and kinship which is a source of social and emotional bondage linking different generations. These days people tend to be linked to each other by being members of social clubs rather than family and kinship. The spread of clubs is also an extension of capitalism

Adjust or confront?

Contemporary populism-based politics and capitalism-based economy have become the two faces of a coin. Traditional economy and traditional value systems which have protected our society, our social bonds and the underprivileged for generations have been auctioned for this coin owned by the capitalists. For as long as labour and natural resources are there to be exploited, capitalism will continue to thrive. As the lifestyle of people driven by populism and technology continues to push, how should the next generation confront capitalism? Simply adjusting to capitalism may not be enough for survival. Anyone with a clear solution will be a candidate for the next Nobel Prize in economics. While we wait for this illusive Winner there are only two ways for the general public to fend from the typhoons of capitalism. Capitalism has done its best in creating wealth, making countries and few people super rich. First, the State needs to take control of the capitalists from further damaging the economy. The state has the obligation to protect its citizens from the predatory capitalist economy. States require to reform public policies keeping in mind the welfare of the citizens, beyond economic growth. Income inequality and wage gaps are not God sent occurrences. These are the outcomes of bad policies.

The lawmakers must exert their full authority and must take control of public services. No public service should be treated as a tax generating industry. This includes basic food supply, access to drinking water and health services. Services such as water, basic food needs and health services should be operated based on non-profit transactions, which at the moment are operated like any other tradable business by the oligarchs. The state must be shielded from the influence and interference of the capitalists to ensure that laws and legislations are equitably applied. How could there be homeless people in so many OECD countries?

Automation has killed millions of unskilled and semi-skilled jobs. The process of automation should perhaps be limited to dangerous tasks only. The state should review and legislate this practice, which harmed millions of unskilled and semi-skilled citizens. Increasing minimum wage is practiced by countries periodically but controlling market prices is more beneficial than increasing minimum wage as an increase in minimum wage induces inflation. It is in sharp contrast to the private sector philosophy where the institutions are more interested in the welfare of the shareholders than the welfare of the workers who bring in the profits. Compensating hard working citizens is not communism or socialism. It is not an ideological issue; it is a moral imperative; it is just a fair deal.

You have to be in control

The second solution is with We, the people. People must resist the glitters of lifestyle promoted by marketeers and the social media, which has become the mouthpiece of capitalist economy. It is essential to understand what matters for us as individuals and family as philosophy of life and living beyond the market. No one but people are in control of their income and expenditure. Empires of billionaires are built on the spending habits of the people. People must be able to distinguish between the need and the want. People are glued to mind bending advertising pushing people to live beyond their means. Instead of people deciding what they need, people are literally dictated by the capitalist economy telling people what they need for survival. The marketing media and technology are giving people choices most cannot afford and not needed. The media are also giving people false hope and false promises by exploiting emotions of people. The lack of media regulation in the name of media freedom is rewarding the rich by putting most people at a disadvantaged situation.

We are not saints

Some of the changes in our society are irreversible. We cannot go back in time and reclaim our lifestyle of past decades, but there are many things we could do to preserve our economy and relive our lifestyle. It is not in any way, a suggestion to renounce the material world all together and start living like a saint. The idea is to detach ourselves from the artificial living fabricated by the capitalist economy. It will also help reduce demand on wasteful industrial production. The basic premise is to resist the extravagant lifestyle promoted by the capitalist economy. It will not only reduce wasteful expenditure but also reduce greenhouse gas emission with slower industrial production.

Ultimately it is up to individuals to choose their own lifestyle. What the state can do is simply regulate the system so that people are not duped and given false hope by the capitalist economy. People certainly are not interested in surviving on welfare. They simply would like to be paid a wage adequate for a decent living. This is where the state and capitalism continue to fail.

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