Ding Dong Is Capitalism Really Dead?

Now that the stock market is taking a bath, home values have been dropping like a rock, and bailouts are around every corner, it seems that everyone is hitting the panic button and wondering if capitalism is dead.  The ex-federal reserve chairman, Alan Greenspan, recently sparked a wild fire that is rushing people to question the future direction of our economy and free market philosophy.  Is it time to throw in the white towel and hang up our capitalistic ideals?  Not just yet.

Capitalism has been the power that’s propelled our country into the economic superpower that we find today.  The spirit of entrepreneurship has lead to some amazing products, services, and companies. Imagine what companies such as Microsoft or 3M would look like if we didn’t live in a capitalistic society.  What would be the incentive to invent new technology or spend countless hours developing a new product if not for the pursuit of creating profit?  I often wonder if people would work the same hours and put in the same effort at the office if every single person was paid the same wage and there was no reward for “overtime” or ingenuity.  I do think that capitalism can be taken to far in that corporate and personal profit are prioritized at the sacrifice of treating other people fairly.  Corporate America should have some social responsibility to ensure a quality of life for employees that fosters an ability to provide for family and community.  With capitalism the market should correct itself and companies that have become “greedy” should fall to the side and be replace by ones that are more socially responsible.  That brings us to where we are at today.  A massive correction in the marketplace.

Clearly there has been a significant growth in the gap between the wealthy and working class in our country and now perhaps we have gotten to a correction point.  I don’t think that capitalism is at fault;  greed has played the major role in the recent unraveling of our free market philosophies.   Let’s not give up on what has been the fundamental driving force behind the growth and prosperity of our great country, but perhaps reevaluate the errors that have been made and make a few tweaks to the system.