In the August 11th edition of Time Magazine, Bill Gates wrote an article on the concept of ‘creative capitalism,’ or finding ‘imaginative’ ways to use the capitalist system to ‘do good’.  He argues that “capitalism has improved the lives of billions of people” (40) and that, in terms of meeting human needs, “governments and nonprofit groups have an irreplacable role in helping them [e.g. those whose needs aren’t met by the market], but it will take to long if they try to do it alone.  It is mainly corporations that have the skills to make technological innovations work for the poor” (40).  Essentially, ‘creative capitalism’ involves a corporation finding a profitable way to distribute goods and services according to need, or, in Gates’ words, “the companies make a difference while adding to their bottom line” (42).  How are corporations going to accomplish this within the mandates of the system?  According to Gates:  “it’s not just about doing more corporate philanthropy or asking companies to be more virtuous.  It’s about giving them a real incentive to apply their expertise in new ways, making it possible to earn a return while serving thh people who have been left out.  This can happen in two ways:  companies can find these opportunities on their own, or governments and nonprofits can help create such opportunities where they presently don’t exist” (43).

Gates’ heart is in the right place, I’m sure.  But let us refocus.  The market distributes goods according to “effective demand,” i.e. according to those who can pay.  The ability to pay is obviously contingent upon your income, coming from either property income (interest, etc, which comes from the ownership of capital goods) or labor income (wages, salaries, etc., that come from the selling of labor power).  Some own capital, and others don’t, and are forced to choose between the sale of their labor power, or death by starvation.  This set of conditions is legally solidified through the codification of private property rights (considered here as legal rights, not necessarily moral rights), and the enforcement of said rights through the coercive apparatus of the state.
Consequently, if you are not lucky enough to be a capitalist, you have two choices.  First, you can choose one from among many corporate taskmasters to work for under the condition that you won’t receive all the value you produce, and once in their firm, they have all the power over you and your life activity and the laws of the U.S. Constitution no longer apply. Alternately, you can choose to starve and die.   You have the freedom to choose between wage-slavery and death. That is the precise definition of ‘economic freedom’ for those who aren’t capitalists.  Even ‘creative capitalism’ would run on this formula.  The theory is that either (1) corporations should find ways to profit off ‘socially beneficial’ behavior themselves, or (2) NGO’s and governments should make ‘socially beneficial’ behavior profitable.  It reveals the true natures of the firm and the economic system when you consider that the argument is not that a firm is a social institution that impacts daily the lives of potentially billions of people, and thus should choose to make that impact a positive one on human welfare regardless of profit.  Instead, the argument for which Bill Gates is getting many pats-on-the-back for is that firms should find a way to profit from activity that doesn’t necessarily kill people, destroy the environment, and subvert democracy.  It is still distributing wages and goods based on neither contribution nor need, and is consequently still illegitimate.  I think it is highly more logical to argue that, as corporations are enabled to accumulate capital through social conditions, and they impact human welfare, they ought to ensure a positive impact on their actions and inactions whether or not it is profitable.  It might be replied, then, that a profit-independent ‘firm’ would be pushed out of the market, for that is not a very ‘capitalist’ trait. . . but that only goes to show how conflicted are the values of capitalism with the value of human welfare.  ‘Creative capitalism’ is little more than the advocacy of getting paid to throw scraps from the table at a banquet to the starving masses below.

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