THE ECONOMY AT THE PRESIDENTIAL CROSSROADS: CHOOSING BETWEEN GREED AND CAPITALISM WITH A CONSCIENCE

"It’s the economy, stupid!"

James Carville coined this phrase during Bill Clinton’s 1992 campaign, and it’s been a go-to line ever since. It’s a reminder that when it comes to presidential elections, economic issues often take center stage. As the 2024 campaign heats up, candidates are once again focusing on the economy, especially with inflation and economic uncertainty on everyone’s mind.

But here’s the thing ~ we need to dig deeper. We should be thinking about what really matters when we assess these candidates’ economic policies.

“It’s the economy, stupid!” might be catchy, but it oversimplifies a complex issue. Sure, we all feel the pinch when gas prices soar, groceries get more expensive, and healthcare costs keep rising. But if we stop there, we miss the bigger picture. We need to think long-term ~ consider how wealth is distributed, who actually benefits from economic growth, and who gets left behind. In other words, we need to think critically about how these policies and capitalism itself shape our lives and what we’re prepared to do to fulfill the real American dream.

This brings us to some tough questions about capitalism. Does it serve the common good, or does it just fuel a dog-eat-dog world out there? Should we let the market run wild, or should the government step in to ensure stability, fairness, and justice?

If we want a version of capitalism with a conscience, we need to ask what changes are necessary ~ and in whose hands we wish to place the responsibility for transformative change.

The Moral Dilemmas of Capitalism

There’s a strong case to be made that the current version of American capitalism isn’t cutting it. Unchecked, it can be exploitative and lead to massive economic inequality.

At its core, capitalism is about rewarding efficiency, innovation, and competition. These qualities have driven incredible economic growth and technological progress.

But there’s a flip side: It’s also been criticized for creating inequality, exploiting workers, and concentrating wealth and power in the hands of a few.

Our democracy is built on two principles that don’t always get along. On one hand, we believe in equal rights for everyone. On the other, we accept that in a free market, some people will come out ahead ~ be more equal than others. The political system is supposed to keep these forces in balance, but let’s be honest ~ it’s not doing a great job.

Our economic system, driven by an endless hunger for profit, often tolerates a certain level of pain. When things get too bad, the government might step in to ease that pain and prevent unrest ~ just like FDR did with the New Deal during the Depression. But overall, the system has led to a society where healthcare is a burden, education is a luxury, and owning a home feels like an impossible dream for many.

This system has also left us with unmet social needs, environmental degradation, and a shrinking middle class. It’s turned nearly everything in our lives into a commodity, including our happiness.

When a system like this has had almost 250 years to prove itself, and yet leaves so many in the lurch, we have to ask: Is it time for a change? We owe it to ourselves to explore new ideas and models.

That’s why the economic visions of Kamala Harris and Donald Trump are worth examining. They offer starkly different approaches to whether capitalism can be ethical and just.

Kamala Harris’s Vision: Ethical Capitalism Through Government Intervention

Kamala Harris's economic proposals represent a vision of capitalism that seeks to be more ethical and just. By focusing on issues like food prices, housing affordability, taxes, and medical costs, Harris’s policies aim to address the systemic inequities that unregulated capitalism often exacerbates.

For example, her proposals to contain food prices through federal regulation, curb corporate consolidation, and enhance penalties for price-gouging are efforts to rein in the excesses of capitalism that lead to market failures and consumer exploitation. These policies reflect a belief that capitalism can be steered towards ethical outcomes through thoughtful government intervention that protects consumers and ensures fair competition.

In housing, Harris’s plan to build 3 million new units and offer tax incentives for "starter" homes is an attempt to address the chronic housing shortage and affordability crisis. By increasing access to affordable housing, Harris’s approach embodies the idea that capitalism can be harnessed to serve the public good, rather than merely enriching those at the top.

Her tax and healthcare proposals further underscore this vision of ethical capitalism. By expanding tax credits for working families, negotiating lower drug prices, and canceling medical debt, Harris seeks to alleviate the financial burdens on middle-class and low-income Americans. These policies are rooted in the belief that a more equitable distribution of resources and opportunities is not only possible within a capitalist framework but necessary for its long-term sustainability.

Donald Trump’s Vision: Economic Growth Through Deregulation and Protectionism

Donald Trump’s economic proposals, on the other hand, reflect a more traditional capitalist approach, emphasizing deregulation, tax cuts, and protectionism. By cutting federal regulations on energy, lowering taxes for domestic producers, and imposing tariffs on foreign goods, Trump’s policies are designed to stimulate economic growth by reducing the role of government in the economy.

This approach aligns with the view that capitalism functions best when left to its own devices, with minimal interference from the state. The assumption is that the free market, driven by competition and profit motives, will naturally lead to optimal outcomes. However, this vision of capitalism often prioritizes short-term economic gains over long-term ethical considerations, such as reducing inequality or protecting the environment.

Trump’s protectionist trade policies, particularly his focus on reducing dependence on China and banning outsourcing to China, reflect an economic nationalism that seeks to protect American jobs and industries. While these policies may resonate with voters who feel left behind by globalization, they also raise questions about the ethical implications of prioritizing national interests over global cooperation and the potential for fostering economic justice within a highly interconnected world.

These two perspectives raise the big question: Can capitalism serve the common good, or does it just widen the gap between the haves and the have-nots? Harris seems to think the right regulations can steer capitalism in the right direction, while Trump’s approach might just deepen inequality.

As we head to the polls, we’re not just picking policy preferences ~ we’re deciding what kind of society we want to live in. Do we want a capitalism that cares about people, or one that chases profits at any cost?

Capitalism with a Conscience ~ The Path Forward

We’re at a turning point. The call for economic justice is growing louder. Dr. Martin Luther King Jr. once said, “Injustice anywhere is a threat to justice everywhere.” The injustices baked into our current economic system are putting our society at risk. It’s time to think about ethical capitalism—an economic model that works for everyone, not just the few at the top.

This approach advocates for a shift away from an economic system focused solely on growth and accumulation towards one that values the common good. It echoes the vision of entities like The Economy for the Common Good, which prioritizes the well-being of people and the planet and proposes a "common good balance sheet" to measure a company's impact on social justice, environmental sustainability, and democratic participation. It is reflected in the practices of solidarity economy corporations like the Mondragon Corporation in Spain and the Preston Model in the United Kingdom, which aim to leverage local resources to create community wealth, reduce inequalities, and ensure fair access to opportunities for all members of society.

In embracing ethical capitalism and models of this sort, we take a step towards an economy that serves all individuals, ensuring that everyone has the opportunity to live dignified, fulfilling lives. The promise of this kind of common good capitalism lies in its potential to create a just, sustainable, and humane society. It is a call to create an economic system that reflects our highest values and aspirations, ensuring that economic activities do not exploit individuals or the environment but rather contribute to the holistic well-being of all people.

The Bottom Line

So, is capitalism inherently amoral, or can it be reformed to promote ethical outcomes? Can capitalism have a conscience? These aren’t just questions for scholars ~ it’s a decision we all face when we vote.

As we weigh the economic visions of Harris and Trump, we’re choosing the kind of society we want to live in. Will we push for a capitalism that has a conscience, or will we keep chasing economic growth at any cost?

The pursuit of ethical capitalism and economic justice requires us to critically examine the policies shaping our economy. We need to recognize that capitalism, if left unchecked, can lead to outcomes that are neither just nor sustainable. But with the right changes, it can promote the well-being of all citizens, not just the privileged few. The choice is ours.