Capitalism and Market

CAPITALISM AND MARKET

BUSINESS ETHICS

Luca Roncella

IDE

INTRODUCTION

Capitalism and market are two concepts used a lot during these years, even if sometimes we do not know their meaning and what are their consequences. Televisions, newspapers and society talk about them as they were our salvation. Actually, each country, which does not apparently have a free-market or does not follow a capitalistic economy, is criticized and is called a tyranny in which does not exit freedom or justice. Then, it could be that market and capitalism are the keys for a free society and a prosperous nation. Since the fall of the Wall of Berlin, it looks like that free-market and capitalism are the winners of this world, and that it cannot exist free enterprise without capitalism. Moreover, always with the end of the Cold War, capitalism appears as the perfect combination between all good values. Nevertheless, reality appears different: inequalities are growing up, virtues are losing their meaning and religions seems became unnecessary. Our society is producing consumers, and not more people, it has left behind the spirit to become materialistic and the public-private collaboration is dead to create a conflict between laissez-faire and bureaucracy.

With this paper, we want to analyze the role of free-market in a free society. To do it, we are going to see what they offer to the society. Moreover, we would see their relationship with ethics and if they are compatibles with Catholicism. Therefore, the big questions will be: are capitalism and market the same thing? Can exist a free market economy without capitalism? Finally, we will draw some conclusions.

THE COMMERCIALIZATION OF THE SOCIETY

The values defended by capitalism look like the best values for the development of the humankind. Michael Novak, in an article in the “International New York Times”, supports this idea by showing what capitalism did for the developed world. “First no other system has so quickly and so globally lifted the poor out of poverty.”^[1] Actually, although it is true that Western countries have grown a lot in the last centuries, it is also true, that the Third World is became poorer for a rampant capitalization of the society. The second point made by Novak is that “no other system has so deeply grasped that the cause of the wealth of nations is, as John Paul II said, “the possession of know-how, technology and skill,” “disciplined and creative human work and, as an essential part of that work, initiative and entrepreneurial ability.”” Then, he said that “no other system has so depended both on law and on moral values” and  “Fourth, in the two centuries since the birth of capitalism the average life expectancy has risen from 26 to 67.”^[2] Though, capitalism and market play a central role in this development, the marketization of the society can lead to the death of moral values. Since we live in a Christian society, it is the first time that we have a so huge moral crisis in Europe. It is the first time that the religions and the traditions have so few importance for people. Since the Church has an important position in the society, it has never happened, that it is so irrelevant. Then, it seems that capitalism can contribute to a loss of identities and cultures in the name of a society which just seeks economic benefit.