Inclusive Capitalism won’t work and is a dangerous illusion

“The problem is that these solutions don’t work. They may improve the lives of a few people in the short run, but they do nothing to tackle the broad systemic problems that need to be solved. In the long run they may actually make things worse by deepening the reach of inherently divisive market forces. They burnish the meritocratic façade of corporate America while encouraging people to blame themselves for their failure to achieve a comfortable life, rather than empowering them to examine and challenge the political and economic structures that order their lives. So while elite storytellers present ideas like creative or inclusive capitalism as radical solutions to global problems, their ideas actually inhibit real change and strengthen the status quo.”

Excerpted from Nicole Aschoff:

“These days the loudest critics of the status quo are not social movements or labor unions; they are people like Bill and Melinda Gates, Sheryl Sandberg, Oprah Winfrey, and John Mackey. Each of them has a plan to solve the problems of society, and they use their power and reach to share their stories and implement their ideas.

Bill and Melinda Gates, for example, believe in the power of markets and the profit motive to solve problems like childhood disease and unequal educational attainment. They believe that these problems exist because markets don’t serve poor people equally, so institutions like the Gates Foundation need to step in and engage in ‘creative capitalism’ by commoditizing health care and using market logic to make public schools and teachers more ‘competitive.’

John Mackey, the CEO of Whole Foods Market, thinks we need to foster ‘true’ or ‘free-enterprise’ capitalism to save the planet from ecological collapse. He presents another new model called “conscious capitalism” that emphasizes free markets and entrepreneurship to optimize value for stakeholders and create an “operating system” that is “in harmony with the fundamentals of human nature” and the planet.

Sheryl Sandberg, COO of Facebook, is passionate about ending gender inequality, while Oprah Winfrey is concerned about anxiety, depression and alienation. Both women tackle these problems by emphasizing internal barriers like fear, socialization, and negative thinking. They encourage people, especially other women, to take charge of their lives by being assertive and thinking positive, and insist that if all of us as individuals think and act more productively then we will reach our goals—whether the goal is ‘feminism’ Sandberg-style or prosperity and happiness in the case of Winfrey.

These storytellers and others like them are extremely powerful. Their voices are heard and their messages are internalized by millions of Americans and other people around the world. Bill and Melinda Gates are attempting to transform public education and global public health completely. Their popularity stems, in large part, from their wealth and power, but their messages also resonate with people because market-led solutions seem safe and achievable. They appeal to a widespread desire to fix problems like poverty, oppression, and environmental destruction, and they reinforce the hope that we can do so by making small changes—like buying better things, thinking differently, or supporting a charity.

The problem is that these solutions don’t work. They may improve the lives of a few people in the short run, but they do nothing to tackle the broad systemic problems that need to be solved. In the long run they may actually make things worse by deepening the reach of inherently divisive market forces. They burnish the meritocratic façade of corporate America while encouraging people to blame themselves for their failure to achieve a comfortable life, rather than empowering them to examine and challenge the political and economic structures that order their lives.

So while elite storytellers present ideas like creative or inclusive capitalism as radical solutions to global problems, their ideas actually inhibit real change and strengthen the status quo.

This might appear overly cynical, so an example is in order: take John Mackey’s model of “conscious capitalism.” Everyone wants to live on a clean, vibrant planet, and preserve nature’s beauty for their children and grandchildren. Mackey argues that this can be achieved by creating and supporting companies like Whole Foods that pay slightly higher wages, adopt eco-business practices, and sell sustainable products. If all companies become ‘conscious’ companies they can dig the world out of the environmental mess that traditional capitalism has created.

This message, while certainly appealing, is not a solution. It ignores the fundamental imperatives of global capitalism that force every company, conscious or not, to continuously expand, overcome their competitors, and most importantly, earn profits. As researchers like Peter Dauvergne and Jane Lister argue, eco-business practices do very little to challenge the way we produce, consume, and dispose of material goods. When we channel our desire to end global warming or rainforest destruction or species extinction through corporations, our desires end up by getting absorbed into business strategies for growth and expansion, strengthening the production-for-profit architecture that’s consuming and destroying the world’s resources.

In covering up the structural nature of problems and putting a radical sheen on ideas that reinforce existing hierarchies of power, these solutions ‘kick the can down the road,’ displacing critique and enabling capitalism to survive as a system. But we don’t have time for false starts and platitudes. It’s imperative that we train a critical eye on easy solutions and start building collective, democratic projects of our own that develop real alternatives for change.”

1 Comment Inclusive Capitalism won’t work and is a dangerous illusion

  1. AvatarGoldie

    Bravo! I just heard this term. It sounded fishy coming from a capitalist. I looked up the meaning and saw many platitudes but no actual solutions by Rothschild or the like. It looked a lot like capitalism with a new name run by the same monopolies of capitalists that have ruined the current state of affairs as,well as the health and well-being of the rest of us. I’m fed up with Gates and their billionaire cronies making decisions based on no evidence or for their own reasons without living the life we have to live while they peddle their self-grandiose ideas that end up hurting others. Why do these people always think they know what’s best for humanity with their obscure business terms and talks? They don’t because they are too far removed from how we live and the petty crap we end up dealing with because of them. I live it. I know it better than all of them put together. Me thinks the emperor still has no clothes. Capitalism is an idea and a fantasy that doesn’t work and hasn’t worked, all in the name of those competing to have more than their share at the expense of the rest of us. It’s run dishonestly and selfishly. “Inclusive capitalism” is a new name for the same crap. Do they think we are all stupid? My b.s. meter just went off. How about a free market such as people supported businesses?

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