Capitalism Has a Big Problem
Editor’s note: This is the first of a five-part series examining the Capitalism Problem and what everyone needs to know about its shortcomings and opportunities.
Capitalism is a system that produces economic and moral value.
Conceptualized by Adam Smith, Milton Friedman narrowed the focus of capitalism to two principles: maximize shareholder value and limit government involvement.
As a result, capitalism has produced two big problems: economic disparity and unethical decisions. I bundle these two issues together into what I call the Capitalism Problem.
Capitalism: An Intensifying Problem with Challenging Solutions
Economic disparity is leading to a middle-class with minimal income growth and a risk to our institutions with policies being driven by an elite few. Decisions being made with short-term and financial-only perspectives are leading to a moral erosion within corporations and society.
The problem of capitalism raises the possibility of weakened political institutions and a strong sentiment of distrust within society. While CEOs and executives, boards of directors, and lobbyists are stakeholders with more power and influence, employees-as-citizens are vulnerable without the ability to address the problem of capitalism…
