Secular Capitalism (1)

Secular capitalism does not work long term. It has one serious problem that will always tend to undermine it from within.

Free market capitalism has solved the production problem. It allowed human initiative and inventiveness to flourish. The accumulation of capital has massively increased human productivity. Free trade has supported a greater division of labour. These factors have led to massive increases in the wealth of the western world. We have moved from a life of subsistence to a world of prosperity in a couple of centuries.

The flaw with free market capitalism is that wealth tends to be concentrated in the hands of a few.

1. Efficient entrepreneurs are rewarded with increasing wealth. That is as it should be. Many use the increase in wealth to expand their enterprise.

2. Wealth flows to those who already have wealth. Those who inherit wealth will find it much easier to increase their wealth than those with none. Wealth begats wealth.

3. The corrupt, crafty and unscrupulous will often do even better. They will often manipulate and swindle the less misfortunate to defraud them for their own benefit.

4. When wealthy people collude with political rulers, the flow of wealth to the rich and powerful is really boosted.

5. Some wealth trickles down to those at the bottom, but the flow up is far greater.

6. When governments produce economic depressions, the poor usually suffer the most.

Secular capitalism increases the wealth of most people in society, but it also produces huge inequalities.