Thursday, February 28, 2008

Cap Capitalism

The problem I have with capitalism stems from the fact that there is no balance factored into the system. Growth is encouraged, even insisted upon. Capitalism has no limits on growth.
One of the laws of thermodynamics states that at a certain point any system will eventually reach a condition where the input of energy exceeds the output and thus attains a state called, the law of diminishing returns. In short, it reaches a point where nothing is gained from any further input of energy.
My organic vegetable garden is a great example of what happens when growth has limits. One example I’ll use is my green pepper plants, but I could use any example in my garden. The seed I insert into the soil emerges and soon grows into a plant about two feet high. It doesn’t keep growing at that point, but rather it stops its growth and puts all its energy into producing blossoms. The blossoms then eventually bear fruit. Not so with capitalism. It has no systemic method necessary when the brakes of growth need to be applied. In other words, the typical capitalistic company is formed, it grows larger and larger, but instead of attaining a point where it concentrates on improving its core product, it keeps on growing at an unsustainable pace until it reflects the average American's midsection. Instead of stopping growth at some logical point, a company fixates upon growth at all costs, forgetting about quality and concentrating solely on quantity. The reason given for such insanity is that a company will say that they exist in a market place that encourages competition and they must survive and do whatever it takes at all costs. But the pepper plants in my garden refute that claim. They compete with other vegetables in the garden for space, water, and nutrients, yet they survive quite nicely. They don’t die because of competition. In fact, they thrive in spite of it.
Corporations in this country are spiraling out of control and the reason is the lack of equilibrium within the capitalistic system in a culture filled with greed. Corporations are allowed to grow way beyond a rational point, to where they become rusting monoliths, unable to respond to its customers, focused only on the needs of the stockholders, which by the way isn’t owned by the typical poor widow and her offspring.
It seems to me that a much better method would be at some point to limit growth by penalizing corporations until, like the pepper plant, they begin to bear fruit for the benefit of its customers. At the very least, putting a cap on capitalism might prevent corporations like Morgan Stanley (who lost more money last year than any year in its history) from rewarding its CEO by giving him 41 million dollars in compensation. Will the greed ever end?

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