In this third installment about false solutions, it is necessary to talk about one of the most shameless: social capitalism. Not only because it is an oxymoron – that is, a combination of words with opposite meanings – but because it tries to sell the cause of the problem as the solution. No one in their right mind would propose curing cancer with what is causing it.
Therefore, the ability of those who promote this trend to beautify the functioning of capitalism and obscure other economic systems and logic is impressive. To achieve this, they omit, whether due to lack of knowledge, ignorance or even strategy, the logic of capital.
Capital is a social relationship of growth. To do this, it articulates a series of mechanisms such as production, the market and consumption. This means that it is possible to produce, market and consume without necessarily making a “profit” involved.
In fact, for much of human history, this was the norm. Even the great monotheistic religions, such as Islam or Christianity, have prohibited the logic of profit (remember that Christ expelled the merchants from the temple with a whip in hand). Only when the capitalist system is installed as dominant throughout the world does the logic of growth become “natural.”
To establish itself as a dominant system, capitalism has destroyed ways of life with its own economies that were not related to it. Various historical, anthropological and sociological studies have documented these processes.
When implemented, the increase in levels of inequality, social conflict, diseases and destruction of the environment become evident. That is to say, there is empirical evidence from all over the world, and even with all this, the promoters of this ideology decide to deliberately omit them as if they did not exist.
They maintain that public problems should be solved by companies, not by the State, without even considering the social costs that this implies. These people believe that the rich should solve the problems that affect us all, such as the distribution of water, food, housing or other basic goods under a logic of profitability. In other words, they consider that these goods—which are rights—should only be distributed among those who can pay for them.
This is nonsense, since starting from this premise would generate an unprecedented increase in inequality. Companies, no matter how “socially responsible” they are, are mandated to make profits and be profitable; Its purpose is not social. The privatization of water, housing, transportation and other public goods has resulted in higher prices, poor service and the discontent of an increasing number of people.
Let’s think for a moment: who are these businessmen to decide on publicly accessible goods? Nobody knows, because nobody knows them. Of course, no one elects them, and since they are not public officials, they are not willing to be accountable to the citizens. Therefore, although popular discontent increases, they cannot be removed as long as their business management continues to generate profits. Social capitalism is deeply undemocratic.
Public problems must be resolved through mechanisms other than those of the market, not only because this is the most inefficient device for the redistribution of goods, but because, within the logic of profit, it will prevent millions of people from accessing the most basic things to have. a decent life.
Once again, the promoters choose to ignore the historical evidence that, just to mention an economist, Thomas Piketty has shown: capitalism generates greater inequality, and only state intervention, through high taxes, has made it possible to reduce that gap through mechanisms of redistribution of income. the wealth.
The last major problem of social capitalism that I want to highlight is the concealment of the environmental impact it generates. As I mentioned before, the essence of a company is growth—there is no company that aspires to become smaller and smaller.
This logic implies infinite growth, which is unsustainable on a finite planet. It means the collapse of the environmental regeneration cycles, prioritizing the growth of production at the expense of any natural balance.
In fact, this is what we already experience today, but launching social capitalism implies strengthening this scenario, since it implies diminishing the only entity with the mandate to impose limits on the destruction of the environment — although it does so clearly. lax—is the State. We cannot simply propose or expect that companies take charge of social life. Therefore, social capitalism is a false solution.
The author is a professor at the Department of Social Sciences at the University of Monterrey and has the distinction of National Researcher (SNI Level 1-CONAHCYT).
