Modernity, Ethics, and The Moral Capitalist 

Throughout the Prominent Thinkers section, I have reviewed the ideas of Adam Smith and Karl Marx regarding free-market economics, as well as the ideas of Friedrich Nietzsche and Martin Heidegger regarding modernity and nihilism. In the following essay, I will outline a criticism of free market economics, a rejection of the myth of modernity, and then use several country case studies to propose social democracy as the best possible system through which to understand the world.  

The Moral Bankruptcy of Free-Market Economics

Discussing free-market policies, deregulation, corporate consolidation, and their effect on the public. 

Heidegger, Nietzsche, and the Myth of Modernity

Disputing modernity as a concept, and instead recontextualizing history as a consistent development of human agency.

Pragmatic Approaches to the Moral Economy

Social democracy and market reform will be analyzed using case studies and testimonials, as well as writing out a blueprint for social democratic reform. 

Free-Market Economics: A Critique

When it comes to the free market of free market economics, the market is not truly free. It is free of government regulation, yes, but it is not free of the personal interests of individuals, which in Smithian theory would increase both the efficiency and the social benefits of the market. At the center of a capitalist system is the profit motive, which is described by Arthur Melzer in his essay, The Moral Resistance to Capitalism, in the collection “Are Markets Moral?” Melzer describes it as a constant need for increasing wealth and growth, regardless of what one already has in hand. The profit motive, while being beneficial for the growth of materialism and consumer economics, is generally subject to two major criticisms; it has a negative effect on others, who must deal with one’s constant search for increasing profits, and it has a degrading effect on oneself in the constant rush for material gain. This, in turn, causes the most disadvantaged of society to become victims of capitalist competition as those with wealth rapidly accumulate it ever further, and in the words of the old adage, “the rich get richer, and the poor get poorer.” While examples of global capitalism causing the poorest within the Global North to grow richer persist, this can easily be explained by the globalist system of capital and exploitation. While the richest countries maintain and even improve the quality of life for all of their citizens, the poorest countries remain on the periphery of economic growth and ultimately see their populations fall prey to exploitation under global capitalism. In this sense, the profit motive is maintained not just on an individual level by people within a capitalist system, but also by entire nations, which then apply it in their ever-searching rise to the top of the metaphorical money pile.   

Free Market Economics: Citations

Melzer, Arthur M., et al. “A Brief Overview.” University of Pennsylvania Press, 2018, pp. 7–14. JSTOR, http://www.jstor.org/stable/j.ctv16t6k4r.4. Accessed 19 Apr. 2023.

Lukes, Steven, et al. “On the Expanding Reach of the Market.” University of Pennsylvania Press, 2018, pp. 68–84. JSTOR, http://www.jstor.org/stable/j.ctv16t6k4r.7. Accessed 19 Apr. 2023.

The Myth of Modernity

As previously mentioned in the sections on Nietzsche and particularly Heidegger, there is a general malaise about modernity within the writings of philosophers described in this collection. In Heidegger’s essay about the subject of technological development, “The Question Concerning Technology,” he describes his idea of modern production versus previous production and attacks the new system of “producing-forth” as a human corruption of the natural order, as opposed to the previous embrace of the natural order via “bringing-forth.” Heidegger, however, seems to approach production with a grass-is-greener mentality, and creates no substantial delineation between his conception of positive production and negative production. Take, for example, the writing of a book; has the act of printing that book made it any less worthy of consumption than a manuscript entirely printed by hand? When does the act of bringing forth, no matter how noble, cease to positively benefit society? To this, Heidegger argues that humans are now challenging nature by taking more than just an immediate aid from it, by building machines that can store energy from phenomena such as wind and then keep it for their own use. The concern, because of this human use of technology, is that our primary mode of interacting with the world is not through nature itself, but through the technology that we use to challenge nature and reveal it. Once again, however, Heidegger fails to consider the truth that technology is becoming part of nature through its use by humans, and that the natural landscape and the landscape created by humans are combining in a continuation from the earliest days of mankind’s inventive processes. From the earliest days of waterwheels and plows, humans have shaped the land around them to match their desires, and the development of technology is a natural extension of that behavior. The actions of people, in this sense, have brought about a modernity, but a modernity with humanity, not a modernity ruled by technology and hubris as put forth by Heidegger.   

Myth of Modernity: Citations

Heidegger, Martin, and William Lovitt. The Question Concerning Technology: And Other Essays. New York: Harper Colophon, 1977.


Case Studies on Social Democracy

In light of the flaws in capitalism, and the new potential in a modernity built on human technology and use of the landscape around us, improvements must be made to our economic system to ensure the best life for all the people within that system. Social democracy, a system built on a mixed approach to the economy, is the best approach to reforming and improving capitalism. Social democrats, though they exist on a large spectrum of political opinions and policy approaches, generally believe in several major tenets; a large social safety net for the public, government intervention in markets to ensure competition and limit consumer exploitation and limiting income inequality through lawmaking. As described by Michael Rocard, the former Prime Minister of France, social democracy is a movement with a historical origin in mitigating the negative effects of capitalism. Workers’ unions, as well as consumer cooperatives, thereby sprung from this goal, and eventually developed into parties that built on pro-worker groups by introducing pro-worker policies. As a result, the ideological base for social democracy is the most adept at addressing the negative aspects of capitalism, as the very idea of social democracy originates with those aspects. Meanwhile, social democracy also doesn’t take actions such as government price controls on all industries that are trademarks of a socialist command economy, which allows for the positive aspects of economic competition and free markets to exist in tandem with the positive aspects of a socially provided set of benefits for citizens. To further analyze social democracy, and the ways in which it operates, I will analyze three major case studies.  

The European Union

The European Union is an economic council of most of the states of Western and Central Europe, as well as some states from Eastern Europe. It serves as an interdependent economic and political entity that legislates, regulates, and moderates Europe, with recognized authority from all member states. The EU is also one of the oldest social democratic experiments in the world. Markets within the Eurozone, as it is called, are regulated by joint policies, and have some of the most stringent limits and requirements on products in the world. While prices are generally higher for this reason, the average purchasing power of consumers is also higher, and Europe enjoys some of the highest life expectancies and social welfare in the world. Another popular policy among EU countries is the adoption of universal public healthcare. The use of the higher tax rates and revenues to generate better social welfare improves lives in the EU, but the union still maintains the same system of market competition as many capitalist countries around the world. In the (paraphrased) words of Neil Kinnock, a British member of the House of Lords and a writer of an essay about the EU in “The Future of Social Democracy,” social justice and economic efficiency are combined in social democracy to create a system that implements both, and improves both market conditions and individual lives in the process.   


New Zealand

New Zealand is a fascinating case study for a country that has veered between social democracy and hardcore neoliberalism from its genesis as a state and has endured political and economic turmoil because of those changes in policy. In 1935, Keynesian theories in economics were applied to the state apparatus to address the Great Depression, and subsequently became enshrined in the country’s government for years to come. In an essay within “The Future of Social Democracy,” David Lange, the former Prime Minister of New Zealand, addresses his legacy as one of the eminent neoliberal voices within the social democratic movement. This legacy, he argues, is built off of the unique aspects of social democracy in New Zealand. Trade unions were mandatory, and regulation was the only real approach to dealing with industries within the Kiwi government. When a currency crisis took place and a new economic system had to be made in the 1980s, the government once again changed, and a new, far more neoliberal system briefly called “Rogernomics” after the popular American name ‘Reaganomics’ was put into place. State-owned companies became separate entities from the government, public-private partnerships proliferated, and government welfare became more sparse as revenues declined. In many ways, these changes maintained their way into the modern system of New Zealand, maintaining a far more economically liberal government than many social democracies.   


Chile

In Chile, there is no adult alive who doesn’t remember where they were when the Estallido Social, the outbreak of mass protests against perceived government corruption and failure to meet the needs of the people, began in 2019. As a result of this massive outcry by the public, important changes to the country’s constitution were made by a convention of democratically elected, primarily leftist delegates in 2021. In the wake of the Pinochet military junta’s collapse in the 1990s, very little had been done to change the Chilean political system; this constitutional convention extended voting rights, particularly to include the extensive Chilean diaspora from the junta’s years. This deeply shifted the political circumstances in Chile, causing the far-right candidate to lose to 35-year-old Gabriel Boric, a former student protester and notable social democrat. President Boric’s government has taken an approach that many social democratic regimes elected in the wake of protests do; it has attempted to create gradual economic and social change while ensuring the support of the groups that protested during Estallido Social. Particularly notable is the battle against economic inequality: Chile remains one of the least equal countries in the world for wealth, and stabilizing tools such as a wealth tax have been proposed by the new government with strong support from the public. Though Chile remains not fully a social democracy, recent changes such as the expansion of the public healthcare system to compete with private businesses and drive prices down has already worked in regulating the market through competition, as well as improving healthcare access for Chileans in the wake of the devastating Covid-19 pandemic. As a budding social democracy, Chile has served as an example of a new generation embracing forms of government that were previously limited in their reach, and thus creating a new political system for economic change.  

Social Democracy Case Studies: Citations

ARIAS, OSCAR. "The Path to Democracy:; Latin America in a New Millennium." In The Future of Social Democracy, edited by PETER H. RUSSELL, 63-72: University of Toronto Press, 1999, http://www.jstor.org/stable/10.3138/j.ctvfrx9mz.11.

Beal, Anders. “Social Democracy in Chile and Latin America’s New Millennial Left.” Global Americans, January 4, 2022. https://theglobalamericans.org/2022/01/social-democracy-in-chile-and-latin-americas-new-millennial-left/.

"Inequality - Income Inequality - OECD Data.” OECD. Accessed May 12, 2023. https://data.oecd.org/inequality/income-inequality.htm.

KINNOCK, NEIL. "L’Europe Rose:; Social Democrats in the European Union." In The Future of Social Democracy, edited by PETER H. RUSSELL, 39-52: University of Toronto Press, 1999, http://www.jstor.org/stable/10.3138/j.ctvfrx9mz.9.

LANGE, DAVID. "Social Democracy in New Zealand." In The Future of Social Democracy, edited by PETER H. RUSSELL, 95-108: University of Toronto Press, 1999, http://www.jstor.org/stable/10.3138/j.ctvfrx9mz.13.