Capitalism: The Rationalization of Irrationality

Capitalism: The Rationalization of Irrationality

Capitalism as an economic system has not been around for a very long time. Stanford indicates that this economic system began in the mid-1700s in Europe . For a considerably young system, it almost seems impossible to imagine a different way of living. Capitalism has become deeply embedded in our social structures; it is naturalized as a way of doing day to day things. If this is the case, then we as humans have a long way to go if we are to achieve social and economic justice. The question I aim to explore is whether capitalism is capable of achieving socio-economic justice. I am arguing that it cannot achieve justice because there is too much focus on profit rather than people and it dislocates the consumers from the modes of production which indirectly promotes social inequality. Our current economic system which I will be interchangeably using as capitalism throughout the paper will examine why the focus on profit is detrimental to the social well-being of people and explain how capitalism is divisive and why this can pose negative outcomes for individuals and communities. It is with these arguments that outline the need for a fundamental change to how our economy is structured and managed.

The word profit is used in many different contexts such as day to day business transactions to a discussion about a country’s Gross Domestic Product (GDP). Yet, what is profit and what kind of social implications are there when this is one of the main focuses within our economy? The pursuit of profit is one of the underlying features that make up our capitalist system. It sparks that competitive drive among businesses and corporations. The simple definition of profit is “when a ...

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...ng this simplistic definition of capitalism which means that there will be “winners” and “losers” to this relationship. The focus upon the “bottom line” leaves little to no room for the consideration of social consequences such as unemployment and poverty. The disconnection that capitalism creates enables itself to flourish thus limiting the potential to achieve socio-economic justice. Fundamentally changing the way capitalism operates requires a political shift in power dynamics. Consumers who do play a role in how the economy is structured are needed to be brought back to consciousness by demanding justice.

Works Cited

Stanford: 35

Ibid: 97

Ibid: 96

Ibid: 94

Ibid:99

Ibid: 40

Ibid: 48

Ibid: 132

Ibid: 97

Ibid: 34

Ibid: 114 – “In developed capitalist economies, private consumption spending accounts for half or more of GDP;314