IS CAPITALISM INHERENTLY UNSTABLE?

There are at least two beneficial fallouts of the economic recession. The first one is the generation of ample fodder to the newspapers, magazines and TV channels for debate, discussion and opinion on the demonized topic. Suddenly, we are awash with opinions from anyone to everyone whether worthy of their salt or not, on the demerits of unfettered capitalism and the virtues of socialism, opinions which were hitherto considered blasphemous at least in the developed world. There were a few who had the bravado or the machismo to talk about it in the past(irrational exuberance etc) but their voices were faint, occasional and got lost in the melee or else were ignored as the going was too good for most people in the business to be distracted by discordant voices. Soothsayers continue to talk of such recessions as parts of normal boom-bust cycles to be taken in one’s stride quoting economic history.

The second beneficial fallout is the rise in the number of devotees (the recession affected ones) thronging the self-styled gurujis, swamijis and wellness counselors seeking solace, thereby adding to their business. Politicians and the economists now wiser on hindsight and the spiritual gurus exhort that ‘greed’ is at the root of all the mess. Greed (or call it the freedom to create and market goods and services) was supposed to be good for innovation and development as long as it was channeled properly for the benefit of humanity or at least so said Ayn Rand. Then came the concept of greed being good but excessive greed being bad.

But I think we need to answer a more fundamental question than be insouciant with the sayings and the opinions of those who are more interested in perpetuating their businesses and fads. The questions are how does one differentiate between ‘greed’ and ‘excessive greed’? Good to whom? To the self or to the humanity? Isn’t it naïve to think that human beings would somehow understand the differences and would draw for themselves their internal ‘laxman rekhas’, namely taking a pledge thus far and no more where greed,corruption, nepotism, favouritism, and devising ponzi schemes etc are concerned? All human beings are born with three gunas namely Rajas,Tamas and Sattwa in varying proportions with Rajas(materialistic desires) dominating in the present day world. There is also the fact that human beings are endowed with varying levels of intelligence. Capitalism feeds on Rajas where more is claimed to be better and merrier. A society based on such a premise is bound to be fundamentally flawed and unstable for the more intelligent ones of the world with dominant Rajas are bound to dominate and liquidate the less intelligent ones, notwithstanding the deceptive claims made by the apologists of capitalism.