The American capitalists are richer and stronger than their counterparts in other lands. They are also younger and more ignorant, and therefore more inclined to seek a rough settlement of difficulties without diplomatic subtlety and finesse. All that does not change the fact that American capitalism operates according to the same laws as the others, is confronted with the same fundamental problems, and is headed toward the same catastrophe.
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There are significant differences between the American and European version of capitalism. The American traditiionally emphasizes the need for limited government, light regulations, low taxes and maximum labour-market flexibility. Its success has been shown above all in the ability to create new jobs, in which it is consistently more successful than Europe.
The heart of American capitalism is a simple idea: open and fair competition — that means that if your companies want to win your business, they have to go out and they have to up their game; better prices and services; new ideas and products. That competition keeps the economy moving and keeps it growing. Fair competition is why capitalism has been the world’s greatest force for prosperity and growth. By the same token, "competitive economy" means companies must do all they do to do — everything they do to compete for workers: offering higher wages, more flexible hours, better benefits. But what we’ve seen over the past few decades is less competition and more concentration that holds our economy back. We see it in big agriculture, in big tech, in big pharma. The list goes on. Rather than competing for consumers, they are consuming their competitors. Rather than competing for workers, they’re finding ways to gain the upper hand on labor. And too often, the government has actually made it harder for new companies to break in and compete.
American capitalism replaced some of the old colonial capitalisms in the countries that began their independent life. But it knows that this is transitory and that there is no real security for its financial speculation in these new territories. The octopus cannot there apply its suckers firmly. The claw of the imperial eagle is trimmed. Colonialism is dead or is dying a natural death in all these places.
What the workingmen of the country are profoundly interested in is the private ownership of the means of production and distribution, the enslaving and degrading wage-system in which they toil for a pittance at the pleasure of their masters and are bludgeoned, jailed or shot when they protest — this is the central, controlling, vital issue of the hour, and neither of the old party platforms has a word or even a hint about it. As a rule, large capitalists are Republicans and small capitalists are Democrats, but workingmen must remember that they are all capitalists, and that the many small ones, like the fewer large ones, are all politically supporting their class interests, and this is always and everywhere the capitalist class.
Despite the miracles of capitalism, it doesn't do well in popularity polls. One of the reasons is that capitalism is always evaluated against the non-existent, non-realizable utopias of socialism or communism. Any earthly system, when compared to a Utopia will pale in comparison. But for the ordinary person, capitalism, with all of its warts, is superior to any system yet devised to deal with our everyday needs and desires.
The big lie of American capitalism is that corporations work in their own best interests. In fact they’re constantly doing things that will eventually bring them to their knees. Most of these blunders involve toxic chemicals that any competent chemist should know to be dangerous. They pump these things into the environment and don’t even try to protect themselves. The evidence is right there in public, almost as if they’d printed up signed confessions and sprinkled them out of airplanes. Sooner or later, someone shows up in a Zodiac and points to that evidence, and the result is devastation far worse than what a terrorist, a Boone, could manage with bombs and guns. All the old men within twenty miles who have come down with tumors become implacable enemies. All the women married to them, all the mothers of damaged children, and even those of undamaged ones. The politicians and the news media trample each other in their haste to pour hellfire down on that corporation. The transformation can happen overnight and it’s easy to bring about. You just have to show up and point your finger.
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I understand that you have an economic system in America known as Capitalism. Through this economic system you have been able to do wonders. You have become the richest nation in the world, and you have built up the greatest system of production that history has ever known. All of this is marvelous, but Americans, there is the danger that you will misuse your Capitalism. I still contend that money can be the root of all evil. It can cause one to live a life of gross materialism. I am afraid that many among you are more concerned about making a living than making a life. You are prone to judge the success of your profession by the index of your salary and the size of the wheel base on your automobile, rather than the quality of your service to humanity. The misuse of Capitalism can also lead to tragic exploitation. This has so often happened in your nation. They tell me that one tenth of one percent of the population controls more than forty percent of the wealth. Oh America, how often have you taken necessities from the masses to give luxuries to the classes. If you are to be a truly Christian nation you must solve this problem. You cannot solve the problem by turning to communism, for communism is based on an ethical relativism and a metaphysical materialism that no Christian can accept. You can work within the framework of democracy to bring about a better distribution of wealth. You can use your powerful economic resources to wipe poverty from the face of the earth. God never intended for one group of people to live in superfluous inordinate wealth, while others live in abject deadening poverty. God intends for all of his children to have the basic necessities of life, and He has left in this universe "enough and to spare" for that purpose. So I call upon you to bridge the gulf between abject poverty and superfluous wealth.
I think it is only because capitalism has proved so enormously more efficient than alternative methods that it has survived at all. (...) I'm not sure capitalism is the right word. There is a sense in which every society is capitalist. The Soviet Union was capitalist, but it was state capitalism. Latin American societies in the past have been capitalist, but it has been oligarchic capitalism. So what we really need to talk about is not capitalism but free market or competitive capitalism which is the system that we would like to have adopted, not just capitalism.
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