FREE ESSAY ON CAPITALISM: ON OUR SIDE?

CAPITALISM: ON OUR SIDE?

In the twenty-first century efforts need to be made to enhance the benefits of capitalism.
This system has been able to improve the lives of many Americans. Critics however, point
out that the improvements have come at a high cost. Specifically, they point to the
amount of damage done to the environment. Although capitalism has raised the standard of
living, because of the damage done to the environment capitalism is a wasteful system.
Throughout history capitalism has raised the standard of living for many individuals. As
former University of Vienna economics professor Ludwig von Mises says, "Modern capitalism
is essentially mass production for the needs of the masses. The buyers of the products
are by and large the same people who as wage earners cooperate in their manufacturing."
For the producer, "Profits are the driving force of the market economy. The greater the
profits, the better the needs of the consumers are supplied." Entrepreneurs are able to
see if the consumers approve of their work by the amount of profit that they make. Profit
is able to increase the number of people that are employed, which is beneficial to both
the country and the individual. Staff member of the Foundation for Economic Education,
Howard Baetjer Jr. points out that, "As more and more goods are produced in greater and
greater numbers, prices of just about everything drops." The increased production is
brought upon by the desire of businesses and corporations to achieve more profit. The
higher wages that result from more profit are just as important as the increase in
production, which allows for more employment. Higher wages and increased employment
result in an improved standard of living.
However, as people strive to achieve more and more profit, the environment is harmed.
Respected author and environmentalist Paul Hawken states, "American industry uses as much
as one hundred times more material and energy than theoretically required to deliver
consumer services." There is not an endless supply of materials and natural resources, so
this type of industrial strategy only brings us closer to the day when they are
exhausted. Hawken goes on to say that, "About 94 percent of the materials extracted for
use in manufacturing durable products become waste before the product is even
manufactured." In order to keep the profits rolling in, businesses and individuals have
been using more and more natural resources. These resources, such as coal and oil, are
not infinite and eventually the supply of them will be gone. Inefficient methods of using
the earth's resources and energy have become prevalent in economies driven by capitalism.
As Hawken emphasizes, "Cars are barely one percent efficient in the sense that, for every
one hundred gallons of gasoline, only one gallon actually moves the car." The emphasis on
profit has led corporations and people to use these inefficient methods and their
continuance will only hurt the environment further.
Capitalism as a system has the ability to overcome its own shortcomings. The immense
amount of energy consumption can be controlled and limited. There are ways to prevent
this abuse from getting out of hand. As Hawken notes, "State-of-the-shelf technologies
combined with intelligent mechanical building design, could reduce energy consumption in
American buildings by 90 percent." Whether this will be the case is up to corporations
and businesses to decide. They can act now and work to preserve what is already here, or
they can continue to waste resources. A continuance of wasting resources will lead to a
bleak future. A future that will see urgency to adapt to a new lifestyle brought on by
the exhaustion of natural resources. This can be avoided if people buy in to the fact
that action must be taken now in order to preserve a bright future. The so called
"resource revolution" needs to arise in all areas of business and support from mighty
corporations will help get the ball rolling. Conservation is the path that must be taken
to insure an environment suitable for generations to come.