A Virtual Church

A look at capitalism

August 8, 2024

We have a problem in America. The compelling will to make money drives upper management level upward and a middle class to the curb. I started seeing this trend over 35 years ago when Colonial Stores fired their 40 hour-a-week employees and hired part-time workers so they would not have to pay health benefits and living wages.

Working class people were tossed away like old bread. For what? Larger profits on the bottom line. The irony is Colonial Stores don’t exist anymore.

Through the years I have seen friends and parishioners who worked in large corporations get “laid off” en masse. Many were in their late 50’s, making comfortable livings and contributing years of expertise and knowledge to their companies. It felt like, “sorry, you get paid too much. We can replace you with lower wage hires.”

At almost 60, they are looking for jobs, largely non-existent jobs, unless they wanted to move to Timbuktu or take substantially less income. They are told things like, “you are overqualified for this position,” and other bologna. Life becomes unstable for an uncertain time. Sometimes career changes are necessary to find new employment.

What this does to the human psyche is hurtful, as people begin to feel self-doubt. Worry about the future sets in.

The CEOs of such companies are untouched. Huge bonuses and salaries raise them above the fray of those left scrambling. Something is wrong with this picture.

Capitalism is an economic system based on principles like – accumulation of capital, competition, property rights, competitive price systems, self-interest, economic freedom, meritocracy, work ethic, profit motive. Entrepreneurism and production of commodities are part of this system. Free market economies, where supply and demand and the risk and reward attitude are marks of the system.

It is said capitalism provides economic growth through the accumulation of capital. But capitalism has an underbelly, and a lot of people don’t have a place at the table. According to The Motley Fool, about 158 million Americans, or 61% of US adults, own stock. The top 1% holds 49% of stocks, worth $19.73 trillion. The bottom 50% of US adults hold only 1% of stocks, worth $41 billion.

Of course corporations need to look at their bottom lines. Owners and shareholders demand it. There is nothing wrong with making a profit. John Wesley said, “Make all you can.” Many people have great entrepreneurism and gifts for creating things that give us a better world. There should be reward for risks many take in building businesses. The dream of a capitalist nation is that all people who work will make a living from their contributions to the enterprise. However, in too many instances, profits are the priority, not people and maybe not even product quality.

What is happening in American corporations now is dividing us between great wealth and just getting by. While there are some safety nets, qualifying is difficult. It’s bad when looking for another job becomes your job.

Wealth disparity in America is growing. According to Statista, 66.9% of the total wealth in the US was owned by the top 10% of earners in the third quarter of 2023. The lowest 50% of earners only owned 2.5% of the total wealth. The corporation is a hungry beast that demands to be fed, and I write this as a capitalist who has benefitted from capitalism. But I also see the chinks when I hear the stories of those whose participation in the capitalist world are blindsided and when their only mistake was loyalty to a company that was not loyal to them.

The way we treat one another in the workplace says a lot about us as corporate and world leaders. The leader and the worker are dependent on each another. Corporate greed is ugly. And trickle-down economics does not work. In fact, trickle-down economics only works when owners let go of enough to trickle down.

Life in the castle may be grand, but those upstairs often close their eyes to how their decisions damage those downstairs. Clinging to extreme wealth and that spoils the system. Dolly Levi, in Hello Dolly, said that “money is like manure. It’s not worth a thing unless it’s spread around, encouraging young things to grow.” 

Part of recovering the soul of America will be finding ways to keep our business and industry sector humming while caring for the workers whose work through the years has given us a vibrant middle class. A middle class that needs to be rebuilt.  

Lib Campbell is a retired Methodist pastor, retreat leader, columnist and host of the blogsite www.avirtualchurch.com. She can be contacted at libcam05@gmail.com 

 

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