Is Capitalism the Only Way?

A recent article on capitalism by Fareed Zakariabe quite ethical? Fareed insists that we are
(Newsweek, June 22, 2009), argues convincinglysuffering 'a moral crisis', at least in the financial
that the world needs more capitalism, not less. Hissector. As the devil's advocate, I would ask him
position of course flies in the face of recentwhether mankind has ever NOT suffered a moral
proposals by the Obama government which statecrisis when dealing with money, profits and power.
that the world needs more controls and moreIt is in our nature to be greedy and indeed it is
government intervention. To those who denouncethat powerful emotion that drives capitalism. Have
capitalism as savage, greedy and unethical, Fareedwe ever heard a CEO state that his company
paraphrases the famous Winston Churchillhad earned enough and that it would pass some
statement regarding democracy: "Capitalism is theof his clients to other firms? How many "honest"
worst economic system, except for all themen, when finding a $100 bill on the sidewalk, will
others." He goes on to assure us that more thanmake a serious effort to find the owner? One
400 million Asian people were lifted - or liftedout of ten, one out of a hundred? How many of
themselves - out of poverty in the last 10 yearsour "distinguished" politicians have the nerve to
thanks to the free market economy. Finally, herefuse free perks from lobbyists? It takes a
affirms without flinching that to work well,special man or woman to refuse to give in to
capitalism requires a set of core ethical valuesgreed and unfortunately, very few of these
that push aside greed when, for example, theindividuals work in the private sector.
banker knows that a certain person will be unableThe Solution to Greed
to repay the mortgage or that a certain financialJust as I stay within the speed limits (most of the
instrument, i.e. derivatives, is based on risky loans.time) for fear of being stopped and fined, so
Not Socialismmust financial institutions be severely controlled
True enough, history has proven to us thatand fined when they cross the boundaries of
so-called socialist societies such as the Sovietprudence and ethics. The rules put in place after
Union, Cuba, and the former China (before 1980),the Great Depression have done a wonderful job
were all showing a sad economic picture; peopleto prevent a new economic catastrophe..until now.
had the basics, but little else. When ChinaWe became complacent and believed foolishly
introduced its unique brand of capitalism, as didthat prosperity and the market would increase
India, its growth has been nothing short offorever. Government watchdogs became one
phenomenal, bringing prosperity to millions of itswith the people they were supposed to audit -
citizens but without democracy. It is truly aBernard Madoff is a prime example - as they
remarkable experiment and we shall see whetherwere caught in the same euphoria. For that
the government can maintain its stranglehold onreason, the present recession was absolutely
the people's freedoms for much longer.necessary, just as a bucket of cold water will
The Problemreanimate a fallen boxer. Does that mean that we
This is not an article on economics, a subject thathave learned our lesson? Of course not; 30 years
keeps baffling me with its constant contradictions,from now, new government employees and new
but rather about the need for moral values to befinanciers will again mess up amid cries and
instilled in CEOs, bankers and financial wizards. Dooutrage from the affected investors. We are
we believe for one instant that businesses of allhuman and thus fallible, but nobody, so far, has
kinds will give up a commission or a monstrousinvented a better system than capitalism.
profit because some aspects of the deal may not