However, I appreciate some of the values of Pope Francis—and I was particularly impressed with his assessment of the current state of our capitalistic system. His assessment recognizes that there are serious concerns with capitalism—the most significant concern being the increasing disparity in wealth.
True capitalism requires that society operates on a level-playing field. This means several things including an equal opportunity to enter the market and that everyone in the market play by the rules. The privileged enjoy significant advantages in terms of education, networking and capital. The connected are able to negotiate the political and legislative fields to create market advantages or secure corporate welfare benefits.
It’s like playing the game Monopoly with someone who owns half the board, has a large amount of cash and assumes the ability to change the rules—before the game even starts.
Cheaters ruin it for everyone and only inspire more of an incentive to cheat. Cheating eventually also inspires government regulation. Winners viciously compete for more market share by eliminating competition and making it more difficult for others to break into their markets. Enough never is and the winners enjoy exponential grow, while the working class fall further and further behind.
Pope Francis called this the “idolatry of money” at the expense of "dignified work, education and healthcare."
Putting this in proper perspective, Pope Francis asks, "How can it be that it is not a news item when an elderly homeless person dies of exposure, but it is news when the stock market loses 2 points?"
President Obama piggybacked the Pope’s comments and addressed the economical and societal consequences of a society so mired in an inequitable distribution of wealth.
"The combined trends of increased inequality and decreasing mobility pose a fundamental threat to the American dream, our way of life, and what we stand for around the globe," Obama said.
Robert Reich, who served under three presidents, connects the dots that have led to the economic disparity in our capitalistic system. These include the reality that:
• almost all economic growth the last three decades have gone to the top
• political power flows to the top
• corporations and the very rich pay lower taxes and receive more corporate welfare
• government budgets are increasingly squeezed
• average Americans are competing with one another for slices of a shrinking pie
The deck is stacked and those who have “made it” sometimes both overestimate the work they did, the obstacles they overcame, and underestimate the “breaks” they had along the way. This isn’t meant to be a sweeping generalization—many people work very, very hard and deserve everything they have. However, many other people have worked very, very hard and not succeeded. Everyone can’t make it—it takes talent, hard work and, often, good fortune.
Thus the lie of capitalism is that everyone who works hard will be successful. People who have made it often say, “If I can do it, so can you,” or “you just have to believe” or “never give up.” It’s good advice; however, it’s a statistical inaccuracy. There are really only a few ways to become very wealthy — work in a professional field (actor, doctor, lawyer, athlete, etc.), growth through financial investment (which requires money to invest), as a successful entrepreneur (usually requires investment and labor of others) and by inheritance or lottery.
Obama summarized in his own way, "It's rooted in the nagging sense that no matter how hard they work, the deck is stacked against them. And it's rooted in the fear that their kids won't be better off than they were.”
A timely example was the recently released statistics detailing the extraordinary gains made by billionaires in 2013. Warren Buffett led the list by increasing his wealth $12.7 billion—that’s over $30 million per day! For the very wealthy, capitalistic growth is exponential, a simple concept that escapes most who defend its principles. The top 1% earns money easier and faster— and continues to own a ridiculous 35% of the country’s total wealth.
What Buffett profited this year would have employed over 250,000 individuals at $50,000 last year. I doubt that Buffett “worked” any harder than he did last year. His growth is simply the result of exponential growth in investment—on the backs of millions of corporate employees (who often struggle to make it on their salaries and live in fear of layoffs).
Income inequality is an eventual inherent result of capitalism. Some of it is by design, those who “deserve” more, get more—but the exponential difference is the result of “unfettered capitalism” as the Pope called it.
The frustration is boiling over, yet many continue to miss the point—deeply dedicated to defending capitalism. Corporations, CEOs and their shareholders continue to get a pass—and we keep electing the politicians who serve their interest.
Reich writes, “Native-born Americans are threatened by new immigrants; private sector workers are resentful of public employees; non-unionized workers are threatened by the unionized; middle class Americans are competing with the poor. Rather than feel that we’re in it together, we increasingly have the sense that each of us is on his or her own.”
We need a better system, a fairer system—a “modified capitalism.”
Unfortunately, there are really only a couple of mechanisms that will inspire greater wealth equalities—and it starts with compassion and a demand on our political leadership.
"I beg the Lord to grant us more politicians who are genuinely disturbed by the state of society, the people, the lives of the poor," Pope Francis said.
Unfortunately, I think the Pope is right—it’ll take nothing less than divine intervention to make things right.