A Critique of Our Current Markets

A lot of people today feel that capitalism is failing them. They feel left behind and they believe that the system is rigged against them. This will undoubtedly be a major driving factor in the next presidential election and there will be many candidates who offer their own diagnosis as to why people feel the way they do. A key reason, I believe, as to why people feel the system is failing them is highlighted by Colin Wright in his book Becoming Who We Need to Be. Wright addresses the way that many people seem to be creating businesses, making money, and becoming successful through trickery and rent-seeking behavior. He writes, “…this means that if we can find a clever way to extract money from the system, even if we don’t create anything of value, or we sap value from society in the process, we’re still doing it right.”

In a recent podcast episode for his show Against The Rules, Michael Lewis described the way that many financial companies exist not to serve customers better, but to operate in a way that makes money seemingly by fooling customers into making decisions that benefit the company without benefiting the consumer. I’m sure that for many of us, our healthcare or health insurance has felt that way. Also for a lot of us, we probably felt that we got a little ripped off on one of the first times we tried to purchase something on Ebay, and ended up not quite getting what we expected.

A lot of aspects within our economic system at the moment seem to reward people even if they don’t give us what we expected. There are incentives to create systems and products that sound clear, but end up being hard to access and ultimately don’t seem to make us or anyone except the seller any better off.

On our own, we all want to get the most money and reward from doing the least amount of work. At times it is true that we all want to bust our bums and do great work, but if we could just set something up where we made money no matter what and didn’t have to do any real work, on some level we would be happy. On an individual level this is not a big deal, but when it is combined, multiplied, and turned into a corporation it can become a problem for society, and that is what we are seeing in the national mood today. People sense that the system is not fair and doesn’t produce fair outcomes. The individual instance of being ripped off might not be the thing that makes them the most angry, but rather the fact that the system allows for people to pull out money and become successful without creating value makes people lose faith in institutions. At a certain level, no matter what our individual incentives are, we should recognize and accept that this is a bad way to operate long term, and we would be better off within a society that seemed to operate more fairly because it would create less anger and more stability on a societal level.

How Effective Altruists Capitalize on Capitalism

In his book The Most Good You Can Do Peter Singer explains the way he thinks about economic objectives, equality, and how capitalism affects the American public.  Singer is globally focused on reducing the suffering of people in extreme poverty and what he explains in his book is that the levels of extreme poverty seen in the united states are far lower than levels seen in other countries. He also explores the idea that to be poor in the United States is better than to be poor in developing countries where there is not a structure of assistance and where there are not wealthy people who are able to make donations to help others.
Singer focuses on the idea of the wealthy helping those who are not as fortunate in his book, but his ideas of wealthy might not align with ours. With his global focus he sees ways in which the average American is vastly more wealthy than most people living throughout the world. Even though we may not consider ourselves wealthy, we are often much better off in the United States, and we often have a much greater opportunity to help others through doing good.
Capitalism in The Most Good You Can Do is explored as the source for both the great wealth in the United States even though it is also a source for great inequality within the our country and the global community. Interestingly, Singer views equality as a secondary goal or a useful byproduct of a society focused on doing good. He writes, “effective altruists typically value equality not for its own sake but only because of its consequences.” I would argue that Singer greatly values political equality and social equality since somewhere at the base of effective altruism one must believe that those who they are helping are equals because we are all human. However, the idea of everyone being on equal footing socially and economically is not a key aspect of effective altruism.  Effective altruists are not driving for more wealth and more things, but may drive toward greater salaries because it means they will have a chance to do more and provide more for those who are in the most unfortunate of situations.
“No doubt capitalism does drive some people into extreme poverty — it is such a vast system that it would be surprising if it did not — but it has also lifted hundreds of millions out of extreme poverty.  It would not be easy to demonstrate that capitalism has driven more people into extreme poverty than it has lifted out of it; indeed there are good grounds for thinking that the opposite is the case.”
Singer’s quote shows that our economic system cannot be blamed for the greatness of our society nor for its shortfalls. People within the same system experience greatly different pressures and outcomes, but what determines the overall health of our society is how we use the system in place. In capitalism the very wealthy have taken advantage of the system to benefit themselves, which is a side effect of the system that does deserve criticism.  I would argue that on the other end of the system, thinking of a socialist or communist society, we would fear that those who are the most disadvantaged would find ways to take advantage of the system as opposed to those who are the most wealthy.
The argument that I believe Singer would make, in regards to capitalism, is that those who do become super wealthy, or even moderately wealthy (which may mean the average American when we adopt a global perspective), can do the most good by choosing to redirect their resources to causes that they can meaningfully impact and that will meaningfully impact the lives of those who suffer the most.  Without a capitalistic system that allows us all to obtain the most wealth possible, we lose the opportunity to do the most good possible. A focus on social responsibility within a capitalistic society, Singer would argue, is the greatest change and source of positivity the world can provide.