How Did We Break Capitalism

Adam Smith’s vision puts people first.

Photo by Dmitry Sytnik on Unsplash

I recently wrote an article where I talk about the lack of morality of the current financial system and how it can have a destructive effect on the behavioral trust process of human beings.

Milton Friedman, in the 1990s, defended the logic of putting the shareholder’s desires ahead of the customer or the employee.

We argue that Friedman’s economic writings assume an economy in which businesses operate under limited liability protection, which allows corporations to privatize their gains while externalizing their losses. By accepting limited liability, Friedman must also view business as embedded in social interdependency, which serves as the logical and moral foundation for corporate social responsibility (CSR).- Ignacio Ferrero, W. Michael Hoffman, Robert E. McNulty in onlinelibrary.wiley.com

This was the first step to the loss of morality in the financial system. We now see where it all went for; having Jeff Bezos buying a multi-billion-dollar yacht and so many other extravaganzas.

Lack of morality can destroy an entire country or economy, but something scarier can also happen- the rise of radical leaders such as Adolf Hitler, Mussolini, or Stalin: those who promised to moralize the political system with moralized politics…