Reference no: EM131915906

Question: Capitalism Challenged: America in Decline?

The economic and moral challenges to our capitalist system, the rise of China, and the ongoing political dysfunction in Washington, DC, have combined to shake our faith in America's future. When asked in a 2013 Gallup Poll if the nation's best days are ahead of us or behind, Americans were split with 47 percent seeing the best as yet to come whereas 50 percent said we hav e already witnessed our peak.12 Some critics attribute the nation's problems to fundamental flaws in capitalism and in the American character. Michael Moore's 2009 documentary movie, Capitalism: A Love Story, assails capitalism as "evil."13 Moore was questioned about his movie:

Wall Street Journal: Why call the movie "Capitalism: A Love Story?" You don't seem to love very much about capitalism. Mr. Moore: It is a love story about the well-to-do. They happen to love their money very much. Now they love our money and they want all our money and our homes. It's about their love.14

Political scientist Benjamin Barber believes that capitalism drags us into decadence by encouraging us to buy as many unnecessary products as we can manage, thus replacing historical principles of hard work and deferred gratification with infantile hungers for anything that might promise comfort. In America's version of capitalism, as Barber sees it, we find liberty in commerce. We can buy whatever we want; therefore, we are free.15 But that undemanding vision of liberty means we have no sense of obligation for social and political ideals greater than self-satisfaction.16 Asking no more of us than unbridled consumption may undermine democracy itself, as columnist Rod Dreher argues:

Democracy requires virtue. So does a healthy capitalism. A nation that cannot govern its own appetites will, in time, be unable to govern itself. An economy that divorces economic activity from the restraining virtues that make for good stewardship will implode.17

Vast Resources

Although America has been grievously shaken by the terrorist attacks of 9/11 and the Great Recession, shouldn't we find encouragement in the nation's extraordinary strengths and resources? We remain dominant in economic, military, and international affairs, and, as Goldman Sachs recently told its clients, we should recognize "the key economic institutional, human capital and geopolitical advantages the U.S. enjoys over other economies."18 In particular, Goldman pointed to America's attractiveness as a location for investment, the nation's vast natural resources (especially arable land, oil, and gas), a workforce that is younger and more energetic than those of our chief rivals, and our continuing leadership in innovation.19 Commentator David Brooks says that America is merely in one of its periodic economic pauses, but he is sure that: "The gospel of success will recapture the imagination."20 Brooks summarized our fundamentally commercial nature:

Walt Whitman got America right in his essay, "Democratic Vistas." He acknowledged the vulgarity of the American success drive. He toted up its moral failings. But in the end he accepted his country's "extreme business energy," its "almost maniacal appetite for wealth." He knew that the country's dreams were all built upon that energy and drive, and eventually the spirit of commercial optimism would always prevail.21

Questions British Labour Party leader Ed Miliband asked in 2012 if 20th century capitalism is failing 21st century society.

1. What did he mean?

2. Answer his question. See Ed Miliband, "At Da vos, Debating Capitalism's Future," New York Times, January 26, 2012.