capitalism Capitalism is an economic system based on the private ownership of the means of production and their use for the purpose of obtaining profit. This socioeconomic system has developed historically through several stages and is defined by ...

anarchist Anarchism is a political philosophy and Political movement, movement that seeks to abolish all institutions that perpetuate authority, coercion, or Social hierarchy, hierarchy, primarily targeting the state (polity), state and capitalism. A ...

socialist Socialism is an economic ideology, economic and political philosophy encompassing diverse Economic system, economic and social systems characterised by social ownership of the means of production, as opposed to private ownership. It describes ...

marxist Marxism is a political philosophy and method of socioeconomic analysis. It uses a dialectical and materialist interpretation of historical development, better known as historical materialism, to analyse class relations, social conflic ...

religious Religion is a range of social- cultural systems, including designated behaviors and practices, morals, beliefs, worldviews, texts, sanctified places, prophecies, ethics, or organizations, that generally relate humanity to supernatural ...

nationalist Nationalism is an idea or movement that holds that the nation should be congruent with the State (polity), state. As a movement, it presupposes the existence and tends to promote the interests of a particular nation,Anthony D. Smith, Smith, A ...

fascist Fascism ( ) is a far-right, authoritarian, and ultranationalist political ideology and movement. It is characterized by a dictatorial leader, centralized autocracy, militarism, forcible suppression of opposition, belief in a natural soci ...

revolution In political science, a revolution (, 'a turn around') is a rapid, fundamental transformation of a society's class, state, ethnic or religious structures. According to sociologist Jack Goldstone, all revolutions contain "a common set of elements ...

social market The social market economy (SOME; ), also called Rhine capitalism, Rhine-Alpine capitalism, the Rhenish model, and social capitalism, is a socioeconomic model combining a free-market capitalist economic system with social policies and enough re ...

human rights Human rights are universally recognized Morality, moral principles or Social norm, norms that establish standards of human behavior and are often protected by both Municipal law, national and international laws. These rights are considered ...

national sovereignty A nation state, or nation-state, is a political entity in which the state (a centralized political organization ruling over a population within a territory) and the nation (a community based on a common identity) are (broadly or ideally) co ...

imperialist Imperialism is the maintaining and extending of power over foreign nations, particularly through expansionism, employing both hard power (military and economic power) and soft power ( diplomatic power and cultural imperialism). Imperialism fo ...

war War is an armed conflict between the armed forces of states, or between governmental forces and armed groups that are organized under a certain command structure and have the capacity to sustain military operations, or between such organi ...

leftists Left-wing politics describes the range of Ideology#Political ideologies, political ideologies that support and seek to achieve social equality and egalitarianism, often in opposition to social hierarchy either as a whole or of certain social ...

climate change Present-day climate change includes both global warming—the ongoing increase in Global surface temperature, global average temperature—and its wider effects on Earth's climate system. Climate variability and change, Climate change in ...

biodiversity loss Biodiversity loss happens when plant or animal species disappear completely from Earth (extinction) or when there is a decrease or disappearance of species in a specific area. Biodiversity loss means that there is a reduction in Biodiversity, b ...

topsoil Topsoil is the upper layer of soil. It has the highest concentration of organic matter and microorganisms and is where most of the Earth's biological soil activity occurs. Description Topsoil is composed of mineral particles and organic mat ...

eutrophication Eutrophication is a general term describing a process in which nutrients accumulate in a body of water, resulting in an increased growth of organisms that may deplete the oxygen in the water; ie. the process of too many plants growing on the s ...

pollution Pollution is the introduction of contaminants into the natural environment that cause harm. Pollution can take the form of any substance (solid, liquid, or gas) or energy (such as radioactivity, heat, sound, or light). Pollutants, the component ...

Friedrich Engels Friedrich Engels ( ;"Engels"
''Random House Webster's Unabridged Dictionary''.rapid industrialization in Europe created working conditions viewed as unfair, including 14-hour work days,

child labor Child labour is the exploitation of children through any form of work that interferes with their ability to attend regular school, or is mentally, physically, socially and morally harmful. Such exploitation is prohibited by legislation w ...

and

shanty towns A shanty town, squatter area, squatter settlement, or squatter camp is a settlement of improvised buildings known as shanties or shacks, typically made of materials such as mud and wood, or from cheap building materials such as corrugated iron sh ...

. Some modern economists argue that average living standards did not improve, or only very slowly improved, before 1840.

Criticism by different schools of thought

Anarchism

French anarchist

Pierre-Joseph Proudhon Pierre-Joseph Proudhon (, ; ; 1809 – 19 January 1865) was a French anarchist, socialist, philosopher, and economist who founded mutualist philosophy and is considered by many to be the "father of anarchism". He was the first person to ca ...

opposed government privilege that protects capitalist, banking and land interests and the accumulation or acquisition of property (and any form of

coercion Coercion involves compelling a party to act in an involuntary manner through the use of threats, including threats to use force against that party. It involves a set of forceful actions which violate the free will of an individual in order to i ...

that led to it) which he believed hampers competition and keeps wealth in the hands of the few. The Spanish individualist anarchist Miguel Giménez Igualada sees "capitalism is an effect of government; the disappearance of government means capitalism falls from its pedestal vertiginously ... That which we call capitalism is not something else but a product of the State, within which the only thing that is being pushed forward is profit, good or badly acquired. And so to fight against capitalism is a pointless task, since be it

State capitalism State capitalism is an economic system in which the state undertakes business and commercial economic activity and where the means of production are nationalized as state-owned enterprises (including the processes of capital accumulation, ...

or Enterprise capitalism, as long as Government exists, exploiting capital will exist. The fight, but of consciousness, is against the State". Within anarchism, there emerged a critique of

wage slavery Wage slavery is a term used to criticize exploitation of labour by business, by keeping wages low or stagnant in order to maximize profits. The situation of wage slavery can be loosely defined as a person's dependence on wages (or a salary) f ...

which refers to a situation perceived as quasi-

voluntary slavery Voluntary slavery, in theory, is the condition of slavery entered into at a point of voluntary consent. It is distinguished from involuntary slavery where an individual is forced to a period of servitude usually as punishment for a crime. Origi ...

, where a person's

livelihood A person's livelihood (derived from ''life-lode'', "way of life"; cf. OG ''lib-leit'') refers to their "means of securing the basic necessities (food, water, shelter and clothing) of life". Livelihood is defined as a set of activities essential ...

depends on

wage A wage is payment made by an employer to an employee for work (human activity), work done in a specific period of time. Some examples of wage payments include wiktionary:compensatory, compensatory payments such as ''minimum wage'', ''prevailin ...

s, especially when the dependence is total and immediate. It is a negatively connoted term used to draw an analogy between

slavery Slavery is the ownership of a person as property, especially in regards to their labour. Slavery typically involves compulsory work, with the slave's location of work and residence dictated by the party that holds them in bondage. Enslavemen ...

and

wage labor Wage labour (also wage labor in American English), usually referred to as paid work, paid employment, or paid labour, refers to the socioeconomic relationship between a worker and an employer in which the worker sells their labour power under ...

by focusing on similarities between owning and

renting Renting, also known as hiring or letting, is an agreement where a payment is made for the use of a good, service or property owned by another over a fixed period of time. To maintain such an agreement, a rental agreement (or lease) is sig ...

a person. The term "wage slavery" has been used to criticize

economic exploitation The exploitation of natural resources describes using natural resources, often non-renewable or limited, for economic growth or development. Environmental degradation, human insecurity, and social conflict frequently accompany natural resource ex ...

and

social stratification Social stratification refers to a society's categorization of its people into groups based on socioeconomic factors like wealth, income, race, education, ethnicity, gender, occupation, social status, or derived power (social and political ...

, with the former seen primarily as unequal bargaining power between labor and capital (particularly when workers are paid comparatively low wages, e.g. in

sweatshops A sweatshop or sweat factory is a cramped workplace with very poor and/or illegal working conditions, including little to no breaks, inadequate work space, insufficient lighting and ventilation, or uncomfortably or dangerously high or low temperat ...

) and the latter as a lack of

workers' self-management Workers' self-management, also referred to as labor management and organizational self-management, is a form of organizational management based on self-directed work processes on the part of an organization's workforce. Self-managed economy, ...

, fulfilling job choices and leisure in an economy. Libertarian socialists believe if freedom is valued, then society must work towards a system in which individuals have the power to decide economic issues along with political issues. Libertarian socialists seek to replace unjustified authority with

direct democracy Direct democracy or pure democracy is a form of democracy in which the Election#Electorate, electorate directly decides on policy initiatives, without legislator, elected representatives as proxies, as opposed to the representative democracy m ...

, voluntary federation and popular autonomy in all aspects of life, including physical communities and economic enterprises. With the advent of the

Industrial Revolution The Industrial Revolution, sometimes divided into the First Industrial Revolution and Second Industrial Revolution, was a transitional period of the global economy toward more widespread, efficient and stable manufacturing processes, succee ...

, thinkers such as Proudhon and Marx elaborated the comparison between wage labor and slavery in the context of a critique of societal property not intended for active personal use,

Luddite The Luddites were members of a 19th-century movement of English textile workers who opposed the use of certain types of automated machinery due to concerns relating to worker pay and output quality. They often destroyed the machines in organ ...

s emphasized the

dehumanization upright=1.2, link=Warsaw Ghetto boy, In his report on the suppression of the Nazi camps as "bandits". file:Abu Ghraib 68.jpg, Lynndie England pulling a leash attached to the neck of a prisoner in Abu Ghraib torture and prisoner abuse, Abu Ghr ...

brought about by machines while later

Emma Goldman Emma Goldman (June 27, 1869 – May 14, 1940) was a Russian-born Anarchism, anarchist revolutionary, political activist, and writer. She played a pivotal role in the development of anarchist political philosophy in North America and Europ ...

famously denounced wage slavery by saying: "The only difference is that you are hired slaves instead of block slaves". American anarchist Emma Goldman believed that the economic system of capitalism was incompatible with human liberty. "The only demand that property recognizes", she wrote in ''Anarchism and Other Essays'', "is its own gluttonous appetite for greater wealth, because wealth means power; the power to subdue, to crush, to exploit, the power to enslave, to outrage, to degrade".Goldman, Emma. ''Anarchism and Other Essays''. 3rd ed. 1917. New York: Dover Publications Inc., 1969., p. 54. She also argued that capitalism dehumanized workers, "turning the producer into a mere particle of a machine, with less will and decision than his master of steel and iron".

Noam Chomsky Avram Noam Chomsky (born December 7, 1928) is an American professor and public intellectual known for his work in linguistics, political activism, and social criticism. Sometimes called "the father of modern linguistics", Chomsky is also a ...

contends that there is little moral difference between chattel slavery and renting one's self to an owner or "wage slavery". He feels that it is an attack on personal integrity that undermines individual freedom. He holds that workers should own and control their workplace. Many libertarian socialists argue that large-scale voluntary associations should manage industrial manufacture while workers retain rights to the individual products of their labor. As such, they see a distinction between the concepts of "private property" and " personal possession". Whereas "private property" grants an individual exclusive control over a thing whether it is in use or not and regardless of its productive capacity, "possession" grants no rights to things that are not in use. In addition to anarchist

Benjamin Tucker Benjamin Ricketson Tucker (; April 17, 1854 – June 22, 1939) was an American individualist anarchist and self-identified socialist. Tucker was the editor and publisher of the American individualist anarchist periodical ''Liberty'' (1881–19 ...

's "big four" monopolies (land, money, tariffs and patents) that have emerged under capitalism, neo- mutualist economist

Kevin Carson Mutualism is an anarchist school of thought and economic theory that advocates for workers' control of the means of production, a free market made up of individual artisans, sole proprietorships and workers' cooperatives, and occupation and u ...

argues that the

state State most commonly refers to: * State (polity), a centralized political organization that regulates law and society within a territory **Sovereign state, a sovereign polity in international law, commonly referred to as a country **Nation state, a ...

has also transferred wealth to the wealthy by subsidizing organizational centralization in the form of transportation and communication subsidies. He believes that Tucker overlooked this issue due to Tucker's focus on individual market transactions, whereas Carson also focuses on organizational issues. The theoretical sections of '' Studies in Mutualist Political Economy'' are presented as an attempt to integrate

marginalist Marginalism is a theory of economics that attempts to explain the discrepancy in the value of goods and services by reference to their secondary, or marginal, utility. It states that the reason why the price of diamonds is higher than that of wa ...

critiques into the

labor theory of value The labor theory of value (LTV) is a theory of value that argues that the exchange value of a good or service is determined by the total amount of " socially necessary labor" required to produce it. The contrasting system is typically known as ...

. Carson has also been highly critical of

intellectual property Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, co ...

. The primary focus of his most recent work has been decentralized manufacturing and the informal and household economies. Carson holds that " pitalism, arising as a new class society directly from the old class society of the

Middle Ages In the history of Europe, the Middle Ages or medieval period lasted approximately from the 5th to the late 15th centuries, similarly to the post-classical period of global history. It began with the fall of the Western Roman Empire and ...

, was founded on an act of robbery as massive as the earlier

feudal Feudalism, also known as the feudal system, was a combination of legal, economic, military, cultural, and political customs that flourished in Middle Ages, medieval Europe from the 9th to 15th centuries. Broadly defined, it was a way of struc ...

conquest of the land. It has been sustained to the present by continual state intervention to protect its system of privilege without which its survival is unimaginable".Richman, Sheldon
Libertarian Left
, ''

The American Conservative ''The American Conservative'' (''TAC'') is a bimonthly magazine published by the American Ideas Institute. The magazine was founded in 2002 by Pat Buchanan, Scott McConnell and Taki Theodoracopulos to advance an anti- neoconservative perspect ...

'' (March 2011) Carson coined the

pejorative A pejorative word, phrase, slur, or derogatory term is a word or grammatical form expressing a negative or disrespectful connotation, a low opinion, or a lack of respect toward someone or something. It is also used to express criticism, hosti ...

term "vulgar libertarianism", a phrase that describes the use of a free market rhetoric in defense of

corporate capitalism In social science and economics, corporate capitalism is a capitalist marketplace characterized by the dominance of hierarchical and bureaucratic corporations. Overview In the developed world, corporations dominate the marketplace, compri ...

and economic inequality. According to Carson, the term is derived from the phrase "vulgar political economy", which Karl Marx described as an economic order that "deliberately becomes increasingly apologetic and makes strenuous attempts to talk out of existence the ideas which contain the contradictions xisting in economic life.

Conservatism and traditionalism

In ''Conservatives Against Capitalism'', Peter Kolozi relies on

Norberto Bobbio Norberto Bobbio (; 18 October 1909 – 9 January 2004) was an Italian philosopher of law and political sciences and a historian of political thought. He also wrote regularly for the Turin-based daily '' La Stampa''. Bobbio was a social lib ...

's definition of right and left, dividing the two camps according to their preference for equality or hierarchy. Kolozi argued that capitalism has faced persistent criticism from the right since the beginning of the Industrial Revolution. Such critics, while heterogeneous, are united in the belief “that laissez-faire capitalism has undermined an established social hierarchy governed by the virtuous or excellent". In September 2018, Murtaza Hussain wrote in ''

The Intercept ''The Intercept'' is an American left-wing nonprofit news organization that publishes articles and podcasts online. ''The Intercept'' has published in English since its founding in 2014, and in Portuguese since the 2016 launch of the Brazilia ...

'' about "Conservatives Against Capitalism", stating:

For all their differences, there is one key aspect of the intellectual history charted in "Conservatives Against Capitalism" that deals with an issue of shared concern on both the left and the right: the need for community. One of the grim consequences of the Social Darwinian pressures unleashed by free-market capitalism has been the destruction of networks of community, family, and professional associations in developed societies. ... These so-called intermediate institutions have historically played a vital role giving ordinary people a sense of meaning and protecting them from the
structural violence Structural violence is a form of violence wherein some social structure or social institution may harm people by preventing them from meeting their basic needs or rights. The term was coined by Norwegian sociologist Johan Galtung, who intr ...
of the state and the market. Their loss has led to the creation of a huge class of atomized and lonely people, cut adrift from traditional sources of support and left alone to contend with the power of impersonal economic forces.

In June 2023, Bridget Ryder wrote in '' The European Conservative'' about the degrowth movement, stating:

Fascism

Fascists opposed both

international socialism ''International Socialism'' is a British-based quarterly journal established in 1960 and published in London by the Socialist Workers Party which discusses socialist theory. It is currently edited by Joseph Choonara who replaced Alex Callini ...

and

free-market capitalism In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any o ...

, arguing that their views represented a

Third Position The Third Position is a set of neo-fascist political ideologies that were first described in Western Europe following the Second World War. Developed in the context of the Cold War, it developed its name through the claim that it represented ...

and claiming to provide a realistic economic alternative that was neither ''

laissez-faire ''Laissez-faire'' ( , from , ) is a type of economic system in which transactions between private groups of people are free from any form of economic interventionism (such as subsidies or regulations). As a system of thought, ''laissez-faire'' ...

''

capitalism Capitalism is an economic system based on the private ownership of the means of production and their use for the purpose of obtaining profit. This socioeconomic system has developed historically through several stages and is defined by ...

nor

communism Communism () is a political sociology, sociopolitical, political philosophy, philosophical, and economic ideology, economic ideology within the history of socialism, socialist movement, whose goal is the creation of a communist society, a ...

. They favored

corporatism Corporatism is an ideology and political system of interest representation and policymaking whereby Corporate group (sociology), corporate groups, such as agricultural, labour, military, business, scientific, or guild associations, come toget ...

and

class collaboration Class collaboration is a principle of social organization based upon the belief that the division of society into a hierarchy of social classes is a positive and essential aspect of civilization. Fascist support Class collaboration is one of ...

, believing that the existence of inequality and social hierarchy was natural (contrary to the views of

socialists Socialism is an economic and political philosophy encompassing diverse economic and social systems characterised by social ownership of the means of production, as opposed to private ownership. It describes the economic, political, and socia ...

) while also arguing that the state had a role in mediating relations between classes (contrary to the views of economic liberals).

Liberalism

During the

Age of Enlightenment The Age of Enlightenment (also the Age of Reason and the Enlightenment) was a Europe, European Intellect, intellectual and Philosophy, philosophical movement active from the late 17th to early 19th century. Chiefly valuing knowledge gained th ...

, some proponents of liberalism were critics of

wage slavery Wage slavery is a term used to criticize exploitation of labour by business, by keeping wages low or stagnant in order to maximize profits. The situation of wage slavery can be loosely defined as a person's dependence on wages (or a salary) f ...

. However, classical liberalism itself was very much an ideology of capitalism, supporting the

free market In economics, a free market is an economic market (economics), system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of ...

and

laissez-faire ''Laissez-faire'' ( , from , ) is a type of economic system in which transactions between private groups of people are free from any form of economic interventionism (such as subsidies or regulations). As a system of thought, ''laissez-faire'' ...

.

Marxism

Karl Marx Karl Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, political theorist, economist, journalist, and revolutionary socialist. He is best-known for the 1848 pamphlet '' The Communist Manifesto'' (written with Friedrich Engels) ...

considered capitalism to be a historically specific

mode of production In the Marxist theory of historical materialism, a mode of production (German: ''Produktionsweise'', "the way of producing") is a specific combination of the: * Productive forces: these include human labour power and means of production (tools, ...

(the way in which the productive property is owned and controlled, combined with the corresponding

social relations A social relation is the fundamental unit of analysis within the social sciences, and describes any voluntary or involuntary interpersonal relationship between two or more conspecifics within and/or between groups. The group can be a language or k ...

between individuals based on their connection with the process of production). The "capitalistic era" according to Marx dates from 16th-century merchants and small urban workshops. Marx knew that wage labour existed on a modest scale for centuries before capitalist industry. For Marx, the capitalist stage of development or "

bourgeois The bourgeoisie ( , ) are a class of business owners, merchants and wealthy people, in general, which emerged in the Late Middle Ages, originally as a "middle class" between the peasantry and Aristocracy (class), aristocracy. They are tradition ...

society" represented the most advanced form of social organization to date, but he also thought that the working classes would come to power in a worldwide

socialist Socialism is an economic ideology, economic and political philosophy encompassing diverse Economic system, economic and social systems characterised by social ownership of the means of production, as opposed to private ownership. It describes ...

or

communist Communism () is a sociopolitical, philosophical, and economic ideology within the socialist movement, whose goal is the creation of a communist society, a socioeconomic order centered on common ownership of the means of production, di ...

transformation of human society as the end of the series of first aristocratic, then capitalist and finally working class rule was reached. Following

Adam Smith Adam Smith (baptised 1723 – 17 July 1790) was a Scottish economist and philosopher who was a pioneer in the field of political economy and key figure during the Scottish Enlightenment. Seen by some as the "father of economics"——— or ...

, Marx distinguished the

use value Use value () or value in use is a concept in classical political economy and Marxist economics. It refers to the tangible features of a commodity (a tradeable object) which can satisfy some human requirement, want or need, or which serves a usef ...

of commodities from their

exchange value In political economy and especially Marxian economics, exchange value () refers to one of the four major attributes of a commodity, i.e., an item or service produced for, and sold on the market, the other three attributes being use value, econo ...

in the market. According to Marx, capital is created with the purchase of commodities for the purpose of creating new commodities with an exchange value higher than the sum of the original purchases. For Marx, the use of

labor power Labour power (; ) is the capacity to work, a key concept used by Karl Marx in his critique of capitalist political economy. Marx distinguished between the capacity to do the work, i.e. labour power, and the physical act of working, i.e. labour ...

had itself become a commodity under capitalism and the exchange value of labor power, as reflected in the wage, is less than the value it produces for the capitalist. This difference in values, he argues, constitutes

surplus value In Marxian economics, surplus value is the difference between the amount raised through a sale of a product and the amount it cost to manufacture it: i.e. the amount raised through sale of the product minus the cost of the materials, plant and ...

, which the capitalists extract and accumulate. In his book ''

Capital Capital and its variations may refer to: Common uses * Capital city, a municipality of primary status ** Capital region, a metropolitan region containing the capital ** List of national capitals * Capital letter, an upper-case letter Econom ...

'', Marx argues that the capitalist mode of production is distinguished by how the owners of capital extract this surplus from workers—all prior class societies had extracted

surplus labor Surplus labor () is a concept used by Karl Marx in his critique of political economy. It means labor performed in excess of the labor necessary to produce the means of livelihood of the worker ("necessary labor"). The "surplus" in this context mea ...

, but capitalism was new in doing so via the sale-value of produced commodities. He argues that a core requirement of a capitalist society is that a large portion of the population must not possess sources of self-sustenance that would allow them to be independent and are instead forced to sell their labor for a wage. In conjunction with his criticism of capitalism was Marx's belief that the working class, due to its relationship to the means of production and numerical superiority under capitalism, would be the driving force behind the socialist revolution. In ''

Imperialism, the Highest Stage of Capitalism ''Imperialism, the Highest Stage of Capitalism'', originally published as ''Imperialism, the Newest Stage of Capitalism'', is a book written by Vladimir Lenin in 1916 and published in 1917. It describes the formation of oligopoly, by the interlac ...

'' (1916),

Vladimir Lenin Vladimir Ilyich Ulyanov ( 187021 January 1924), better known as Vladimir Lenin, was a Russian revolutionary, politician and political theorist. He was the first head of government of Soviet Russia from 1917 until Death and state funeral of ...

further developed Marxist theory and argued that capitalism necessarily led to monopoly capitalism and the export of capital—which he also called "imperialism"—to find new markets and resources, representing the last and highest stage of capitalism. Some 20th-century

Marxian economists Marxian is a term generally used to refer to things related to Karl Marx other than Marxism. It can refer to: * Marxian economics * Marxian class theory See also * Marxism Marxism is a political philosophy and method of socioeconomic a ...

consider capitalism to be a social formation where capitalist class processes dominate, but are not exclusive. To these thinkers, capitalist class processes are simply those in which surplus labor takes the form of surplus value, usable as capital; other tendencies for utilization of labor nonetheless exist simultaneously in existing societies where capitalist processes predominate. However, other late Marxian thinkers argue that a social formation as a whole may be classed as capitalist if capitalism is the mode by which a surplus is extracted, even if this surplus is not produced by capitalist activity as when an absolute majority of the population is engaged in non-capitalist economic activity. In ''Limits to Capital'' (1982),

David Harvey David William Harvey (born 31 October 1935) is a British-American academic best known for Marxist analyses that focus on urban geography as well as the economy more broadly. He is a Distinguished Professor of anthropology and geography at t ...

outlines an overdetermined, "spatially restless" capitalism coupled with the spatiality of crisis formation and resolution. Harvey used Marx's theory of crisis to aid his argument that capitalism must have its "fixes", but that we cannot predetermine what fixes will be implemented, nor in what form they will be. His work on contractions of capital accumulation and international movements of capitalist modes of production and money flows has been influential.Lawson, Victoria. ''Making Development Geography (Human Geography in the Making)''. New York: A Hodder Arnold Publication, 2007. Print. According to Harvey, capitalism creates the conditions for volatile and geographically uneven development. Sociologists such as Ulrich Beck envisioned the society of risk as a new cultural value which saw risk as a commodity to be exchanged in globalized economies. This theory suggested that disasters and capitalist economy were inevitably entwined. Disasters allow the introduction of economic programs which otherwise would be rejected as well as decentralizing the class structure in production.

Religion

Many

organized religion Organized religion, also known as institutional religion, is religion in which belief systems and rituals are systematically arranged and formally established, typically by an official doctrine (or dogma), a hierarchical or bureaucratic leadership ...

s have criticized or opposed specific elements of capitalism. Traditional

Judaism Judaism () is an Abrahamic religions, Abrahamic, Monotheism, monotheistic, ethnic religion that comprises the collective spiritual, cultural, and legal traditions of the Jews, Jewish people. Religious Jews regard Judaism as their means of o ...

,

Christianity Christianity is an Abrahamic monotheistic religion, which states that Jesus in Christianity, Jesus is the Son of God (Christianity), Son of God and Resurrection of Jesus, rose from the dead after his Crucifixion of Jesus, crucifixion, whose ...

, and

Islam Islam is an Abrahamic religions, Abrahamic monotheistic religion based on the Quran, and the teachings of Muhammad. Adherents of Islam are called Muslims, who are estimated to number Islam by country, 2 billion worldwide and are the world ...

forbid lending money at interest, although alternative methods of banking have been developed. Some Christians have criticized capitalism for its

materialist Materialism is a form of philosophical monism according to which matter is the fundamental substance in nature, and all things, including mental states and consciousness, are results of material interactions. According to philosophical materia ...

aspects and its inability to account for the wellbeing of all people. Many of Jesus' parables deal with economic concerns: farming, shepherding, being in debt, doing hard labor, being excluded from banquets and the houses of the rich and have implications for wealth and power distribution. Catholic scholars and clergy have often criticized capitalism because of its disenfranchisement of the poor, often promoting

distributism Distributism is an economic theory asserting that the world's productive assets should be widely owned rather than concentrated. Developed in the late 19th and early 20th centuries, distributism was based upon Catholic social teaching princi ...

as an alternative. In his 84-page apostolic exhortation ,

Catholic Pope The pope is the bishop of Rome and the visible head of the worldwide Catholic Church. He is also known as the supreme pontiff, Roman pontiff, or sovereign pontiff. From the 8th century until 1870, the pope was the sovereign or head of sta ...

Francis Francis may refer to: People and characters *Pope Francis, head of the Catholic Church (2013–2025) *Francis (given name), including a list of people and fictional characters * Francis (surname) * Francis, a character played by YouTuber Boogie2 ...

described unfettered capitalism as "a new tyranny" and called on world leaders to fight rising poverty and inequality, stating: The

Catholic Church The Catholic Church (), also known as the Roman Catholic Church, is the List of Christian denominations by number of members, largest Christian church, with 1.27 to 1.41 billion baptized Catholics Catholic Church by country, worldwid ...

forbids

usury Usury () is the practice of making loans that are seen as unfairly enriching the lender. The term may be used in a moral sense—condemning taking advantage of others' misfortunes—or in a legal sense, where an interest rate is charged in e ...

. As established by papal

encyclicals An encyclical was originally a circular letter sent to all the churches of a particular area in the ancient Roman Church. At that time, the word could be used for a letter sent out by any bishop. The word comes from the Late Latin (originally fr ...

''

Rerum Novarum ''Rerum novarum'', or ''Rights and Duties of Capital and Labor'', is an encyclical issued by Pope Leo XIII on 15 May 1891. It is an open letter, passed to all Catholic patriarchs, primates, archbishops, and bishops, which addressed the condi ...

'' and ''

Quadragesimo Anno ''Quadragesimo anno'' () (Latin for "In the 40th Year") is an encyclical issued by Pope Pius XI on 15 May 1931, 40 years after Leo XIII's encyclical '' Rerum novarum'', further developing Catholic social teaching. Unlike Leo XIII, who addre ...

'',

Catholic social teaching Catholic social teaching (CST) is an area of Catholic doctrine which is concerned with human dignity and the common good in society. It addresses oppression, the role of the state, subsidiarity, social organization, social justice, and w ...

does not support unrestricted capitalism, primarily because it is considered part of

liberalism Liberalism is a Political philosophy, political and moral philosophy based on the Individual rights, rights of the individual, liberty, consent of the governed, political equality, the right to private property, and equality before the law. ...

and secondly by its nature, which goes against social justice. In 2013,

Pope Francis Pope Francis (born Jorge Mario Bergoglio; 17 December 1936 – 21 April 2025) was head of the Catholic Church and sovereign of the Vatican City State from 13 March 2013 until Death and funeral of Pope Francis, his death in 2025. He was the fi ...

said that more restrictions on the free market were required because the "dictatorship" of the global financial system and the "cult of money" were making people miserable. In his encyclical ''

Laudato si' ''Laudato si'' (''Praise Be to You'') is the second encyclical of Pope Francis, subtitled "on care for our common home". In it, the Pope criticizes consumerism and irresponsible economic development, laments environmental degradation and gl ...

'', Pope Francis denounced the role of capitalism in furthering climate change. Islam forbids lending money at interest (''riba''), the mode of operation of capitalist finance.

Socialism

Socialists Socialism is an economic and political philosophy encompassing diverse economic and social systems characterised by social ownership of the means of production, as opposed to private ownership. It describes the economic, political, and socia ...

argue that the accumulation of capital generates waste through

externalities In economics, an externality is an indirect cost (external cost) or indirect benefit (external benefit) to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be considered as unpriced ...

that require costly corrective regulatory measures. They also point out that this process generates wasteful industries and practices that exist only to generate sufficient demand for products to be sold at a profit (such as high-pressure advertisement), thereby creating rather than satisfying economic demand. Socialists argue that capitalism consists of irrational activity, such as the purchasing of commodities only to sell at a later time when their price appreciates (known as

speculation In finance, speculation is the purchase of an asset (a commodity, good (economics), goods, or real estate) with the hope that it will become more valuable in a brief amount of time. It can also refer to short sales in which the speculator hope ...

), rather than for consumption. Therefore, a crucial criticism often made by socialists is that making money, or accumulation of capital, does not correspond to the satisfaction of demand (the production of

use-value Use value () or value in use is a concept in classical political economy and Marxist economics. It refers to the tangible features of a Commodity (Marxism), commodity (a tradeable object) which can satisfy some human requirement, want or need, o ...

s). The fundamental criterion for economic activity in capitalism is the accumulation of capital for reinvestment in production. This spurs the development of new, non-productive industries that do not produce use-value and only exist to keep the accumulation process afloat. An example of a non-productive industry is the

financial industry Financial services are service (economics), economic services tied to finance provided by financial institutions. Financial services encompass a broad range of tertiary sector of the economy, service sector activities, especially as concerns finan ...

, which contributes to the formation of economic bubbles. Socialists view

private property Private property is a legal designation for the ownership of property by non-governmental Capacity (law), legal entities. Private property is distinguishable from public property, which is owned by a state entity, and from Collective ownership ...

relations as limiting the potential of

productive forces Productive forces, productive powers, or forces of production ( German: ''Produktivkräfte'') is a central idea in Marxism and historical materialism. In Karl Marx and Friedrich Engels' own critique of political economy, it refers to the combin ...

in the economy. According to socialists, private property becomes obsolete when it concentrates into centralized, socialized institutions based on private appropriation of revenue (but based on cooperative work and internal planning in allocation of inputs) until the role of the capitalist becomes redundant. With no need for

capital accumulation Capital accumulation is the dynamic that motivates the pursuit of profit, involving the investment of money or any financial asset with the goal of increasing the initial monetary value of said asset as a financial return whether in the form ...

and a class of owners, private property of the means of production is perceived as being an outdated form of economic organization that should be replaced by a free association of individuals based on public or

common ownership Common ownership refers to holding the assets of an organization, enterprise, or community indivisibly rather than in the names of the individual members or groups of members as common property. Forms of common ownership exist in every economi ...

of these socialized assets.Marx and Engels Selected Works, Lawrence and Wishart, 1968, p. 40. Capitalist property relations put a "fetter" on the productive forces. Private ownership imposes constraints on planning, leading to uncoordinated economic decisions that result in business fluctuations, unemployment and a tremendous waste of material resources during crisis of

overproduction In economics, overproduction, oversupply, excess of supply, or glut refers to excess of supply over demand of products being offered to the market. This leads to lower prices and/or unsold goods along with the possibility of unemployment. T ...

.''The Political Economy of Socialism'', by Horvat, Branko. 1982. (p. 197) Excessive disparities in income distribution lead to social instability and require costly corrective measures in the form of redistributive taxation. This incurs heavy administrative costs while weakening the incentive to work, inviting dishonesty and increasing the likelihood of tax evasion (the corrective measures) while reducing the overall efficiency of the market economy.''The Political Economy of Socialism'', by Horvat, Branko. 1982. (pp. 197–198) These corrective policies limit the market's incentive system by providing things such as

minimum wage A minimum wage is the lowest remuneration that employers can legally pay their employees—the price floor below which employees may not sell their labor. List of countries by minimum wage, Most countries had introduced minimum wage legislation b ...

s,

unemployment insurance Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is the proportion of people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work du ...

, taxing profits and reducing the reserve army of labor, resulting in reduced incentives for capitalists to invest in more production. In essence, social welfare policies cripple capitalism's incentive system and are thus unsustainable in the long-run.''Market Socialism: The Debate Among Socialists'', 1998. pp. 60–61"

Marxists Marxism is a political philosophy and method of socioeconomic analysis. It uses a dialectical and materialist interpretation of historical development, better known as historical materialism, to analyse class relations, social conflict, and ...

argue that the establishment of a

socialist mode of production The socialist mode of production, also known as socialism or communism, is a specific historical phase of economic development and its corresponding set of social relations that emerge from capitalism in the schema of historical materialism wit ...

is the only way to overcome these deficiencies. Socialists and specifically Marxian socialists, argue that the inherent conflict of interests between the working class and capital prevent optimal use of available human resources and leads to contradictory interest groups (labor and business) striving to influence the state to intervene in the economy at the expense of overall economic efficiency. Early socialists (

utopian socialists Utopian socialism is the term often used to describe the first current of modern socialism and socialist thought as exemplified by the work of Henri de Saint-Simon, Charles Fourier, Étienne Cabet, and Robert Owen. Utopian socialism is oft ...

and

Ricardian socialists Ricardian socialism is a branch of classical economic thought based upon the work of the economist David Ricardo (1772–1823). Despite Ricardo being a capitalist economist, the term is used to describe economists in the 1820s and 1830s who dev ...

) criticized capitalism for concentrating

power Power may refer to: Common meanings * Power (physics), meaning "rate of doing work" ** Engine power, the power put out by an engine ** Electric power, a type of energy * Power (social and political), the ability to influence people or events Math ...

and

wealth Wealth is the abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions. This includes the core meaning as held in the originating Old English word , which is from an ...

within a small segment of society who do not utilize available

technology Technology is the application of Conceptual model, conceptual knowledge to achieve practical goals, especially in a reproducible way. The word ''technology'' can also mean the products resulting from such efforts, including both tangible too ...

and resources to their maximum potential in the interests of the public. Albert Einstein Head

In the May 1949 issue of the ''

Monthly Review The ''Monthly Review'' is an independent socialist magazine published monthly in New York City. Established in 1949, the publication is the longest continuously published socialist magazine in the United States. History Establishment Following ...

'' titled "

Why Socialism? "Why Socialism?" is an article written by Albert Einstein in May 1949 that appeared in the first issue of the socialist journal ''Monthly Review''. It addresses problems with capitalism, predatory economic competition, and growing wealth inequali ...

",

Albert Einstein Albert Einstein (14 March 187918 April 1955) was a German-born theoretical physicist who is best known for developing the theory of relativity. Einstein also made important contributions to quantum mechanics. His mass–energy equivalence f ...

wrote:

I am convinced there is only one way to eliminate (the) grave evils (of capitalism), namely through the establishment of a socialist economy, accompanied by an educational system which would be oriented toward social goals. In such an economy, the means of production are owned by society itself and are utilized in a planned fashion. A planned economy, which adjusts production to the needs of the community, would distribute the work to be done among all those able to work and would guarantee a livelihood to every man, woman, and child. The education of the individual, in addition to promoting his own innate abilities, would attempt to develop in him a sense of responsibility for his fellow-men in place of the glorification of power and success in our present society.

Topics of criticism

Democracy and freedom

Economist

Branko Horvat Branko Horvat (24 July 1928 – 18 December 2003) was a Croatian economist and politician. Horvat was born in Petrinja on 24 July 1928. In 1944 during World War II, Horvat and his father Artur Horvat joined the Partisan movement in Croatia. He ...

stated that " is now well known that capitalist development leads to the concentration of capital, employment and power. It is somewhat less known that it leads to the almost complete destruction of economic freedom". Critics argue that capitalism is in fact not a

democracy Democracy (from , ''dēmos'' 'people' and ''kratos'' 'rule') is a form of government in which political power is vested in the people or the population of a state. Under a minimalist definition of democracy, rulers are elected through competitiv ...

, but a

plutocracy A plutocracy () or plutarchy is a society that is ruled or controlled by people of great wealth or income. The first known use of the term in English dates from 1631. Unlike most political systems, plutocracy is not rooted in any established ...

, because in capitalism there is a lack of

political Politics () is the set of activities that are associated with decision-making, making decisions in social group, groups, or other forms of power (social and political), power relations among individuals, such as the distribution of Social sta ...

, democratic and

economic power Economic power refers to the ability of countries, businesses or individuals to make decisions on their own that benefit them. Scholars of international relations also refer to the economic power of a country as a factor influencing its power in ...

for the vast majority of the population. They say that this is because in capitalism the

means of production In political philosophy, the means of production refers to the generally necessary assets and resources that enable a society to engage in production. While the exact resources encompassed in the term may vary, it is widely agreed to include the ...

are owned privately by a minority of the population, with the vast majority of the population having no control of the

economy An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is ...

. Critics argue that capitalism creates large concentrations of money and property in the hands of the

elite In political and sociological theory, the elite (, from , to select or to sort out) are a small group of powerful or wealthy people who hold a disproportionate amount of wealth, privilege, political power, or skill in a group. Defined by the ...

, leading to vast wealth and income inequalities between the elite and the majority of the population. Evidence for the fact that capitalism is

plutocratic A plutocracy () or plutarchy is a society that is ruled or controlled by people of great wealth or income. The first known use of the term in English dates from 1631. Unlike most political systems, plutocracy is not rooted in any established ...

can be seen in policies that benefit capitalists at the expense of workers, such as policies where taxes are raised on workers and reduced for capitalists, and the retirement age being increased despite it being against the will of the people. "

Corporate capitalism In social science and economics, corporate capitalism is a capitalist marketplace characterized by the dominance of hierarchical and bureaucratic corporations. Overview In the developed world, corporations dominate the marketplace, compri ...

" and " inverted totalitarianism" are terms used by the aforementioned activists and critics of capitalism to describe a capitalist marketplace—and society—characterized by the dominance of

hierarchical A hierarchy (from Greek: , from , 'president of sacred rites') is an arrangement of items (objects, names, values, categories, etc.) that are represented as being "above", "below", or "at the same level as" one another. Hierarchy is an importan ...

,

bureaucratic Bureaucracy ( ) is a system of organization where laws or regulatory authority are implemented by civil servants or non-elected officials (most of the time). Historically, a bureaucracy was a government administration managed by departments ...

, large corporations, which are legally required to pursue profit without concern for social welfare. Corporate capitalism has been criticized for the amount of power and influence corporations and large business interest groups have over government policy, including the policies of regulatory agencies and influencing political campaigns. Many social scientists have criticized

corporation A corporation or body corporate is an individual or a group of people, such as an association or company, that has been authorized by the State (polity), state to act as a single entity (a legal entity recognized by private and public law as ...

s for failing to act in the interests of the people; they claim the existence of large corporations seems to circumvent the principles of democracy, which assumes equal power relations between all individuals in a society. As part of the

political left Left-wing politics describes the range of political ideologies that support and seek to achieve social equality and egalitarianism, often in opposition to social hierarchy either as a whole or of certain social hierarchies. Left-wing politi ...

, activists against corporate power and influence work towards a decreased

income gap In economics, income distribution covers how a country's total GDP is distributed amongst its population. Economic theory and economic policy have long seen income and its distribution as a central concern. Unequal distribution of income causes ...

and improved economical equity. The rise of giant

multinational corporation A multinational corporation (MNC; also called a multinational enterprise (MNE), transnational enterprise (TNE), transnational corporation (TNC), international corporation, or stateless corporation, is a corporate organization that owns and cont ...

s has been a topic of concern among the aforementioned scholars, intellectuals and activists, who see the large corporation as leading to deep, structural erosion of such basic

human rights Human rights are universally recognized Morality, moral principles or Social norm, norms that establish standards of human behavior and are often protected by both Municipal law, national and international laws. These rights are considered ...

and

civil rights Civil and political rights are a class of rights that protect individuals' political freedom, freedom from infringement by governments, social organizations, and private individuals. They ensure one's entitlement to participate in the civil and ...

as equitable wealth and income distribution, equitable democratic political and socio-economic power representation and many other human rights and needs. They have pointed out that in their view large corporations create false needs in consumers and—they contend—have had a long history of interference in and distortion of the policies of

sovereign ''Sovereign'' is a title that can be applied to the highest leader in various categories. The word is borrowed from Old French , which is ultimately derived from the Latin">-4; we might wonder whether there's a point at which it's appropriate to ...

nation states A nation state, or nation-state, is a political entity in which the State (polity), state (a centralized political organization ruling over a population within a territory) and the nation (a community based on a common identity) are (broadly ...

through high-priced legal

lobbying Lobbying is a form of advocacy, which lawfully attempts to directly influence legislators or government officials, such as regulatory agency, regulatory agencies or judiciary. Lobbying involves direct, face-to-face contact and is carried out by va ...

and other almost always legal, powerful forms of

influence peddling Influence peddling, also called traffic of influence or trading in influence, is the practice of using one's influence in government or connections with authorities to obtain favours or preferential treatment for another, usually in return for ...

. In their view, evidence supporting this belief includes invasive advertising (such as

billboards A billboard (also called a hoarding in the UK and many other parts of the world) is a large out-of-home advertising, outdoor advertising structure (a billing board), typically found in high-traffic areas such as alongside busy roads. Billboard ...

, television ads,

adware Adware, often called advertising-supported software by its developers, is software that generates revenue by automatically displaying Online advertising, online advertisements in the user interface or on a screen presented during the installatio ...

,

spam Spam most often refers to: * Spam (food), a consumer brand product of canned processed pork of the Hormel Foods Corporation * Spamming, unsolicited or undesired electronic messages ** Email spam, unsolicited, undesired, or illegal email messages ...

,

telemarketing Telemarketing (sometimes known as inside sales, or telesales in the UK and Ireland) is a method of direct marketing in which a salesperson solicits prospective customers to buy products, subscriptions or services, either over the phone or throu ...

, child-targeted advertising and

guerrilla marketing Guerrilla marketing is an Advertising, advertisement strategy in which a company uses surprise and/or unconventional interactions in order to promote a Product (business), product or Service (business), service. It is a type of publicity. The ...

), massive open or secret corporate political campaign contributions in so-called "democratic" elections,

corporatocracy Corporatocracy or corpocracy is an economic, political and judicial system controlled or influenced by business corporations or corporate Interest group, interests. The concept has been used in explanations of bank bailouts, excessive pay for ...

, the

revolving door A revolving door typically consists of three or four doors that hang on a central shaft and rotate around a vertical axis within a cylindrical enclosure. To use a revolving door, a person enters the enclosure between two of the doors and then m ...

between government and corporations,

regulatory capture In politics, regulatory capture (also called agency capture) is a form of corruption of authority that occurs when a political entity, policymaker, or regulator is co-opted to serve the commercial, ideological, or political interests of a minor ...

, "

too big to fail "Too big to fail" (TBTF) is a theory in banking and finance that asserts that certain corporations, particularly financial institutions, are so large and so interconnected with an economy that their failure would be disastrous to the greater e ...

" (also known as " too big to jail"), massive taxpayer-provided corporate

bailout A bailout is the provision of financial help to a corporation or country which otherwise would be on the brink of bankruptcy. A bailout differs from the term ''bail-in'' (coined in 2010) under which the bondholders or depositors of global syst ...

s, socialism/communism for the very rich and brutal, vicious, Darwinian capitalism for everyone else, and—they claim—seemingly endless global news stories about

corporate corruption In criminology, corporate crime refers to crimes committed either by a corporation (i.e., a business entity having a separate legal personality from the natural persons that manage its activities), or by individuals acting on behalf of a corpor ...

(

Martha Stewart Martha Helen Stewart (, ; born August 3, 1941) is an American retail business woman, writer, and television personality. As the founder of Martha Stewart Living Omnimedia, focusing on home and hospitality, she gained success through a variety ...

and

Enron Enron Corporation was an American Energy development, energy, Commodity, commodities, and services company based in Houston, Texas. It was led by Kenneth Lay and developed in 1985 via a merger between Houston Natural Gas and InterNorth, both re ...

, among other examples). Anti-corporate-activists express the view that large corporations answer only to large shareholders, giving

human rights Human rights are universally recognized Morality, moral principles or Social norm, norms that establish standards of human behavior and are often protected by both Municipal law, national and international laws. These rights are considered ...

issues,

social justice Social justice is justice in relation to the distribution of wealth, opportunities, and privileges within a society where individuals' rights are recognized and protected. In Western and Asian cultures, the concept of social justice has of ...

issues, environmental issues and other issues of high significance to the bottom 99% of the global human population virtually no consideration. American political philosopher

Jodi Dean Jodi Dean (born 1962) is an American political theorist and professor in the Political Science department at Hobart and William Smith Colleges in New York state. She held the Donald R. Harter ’39 Professorship of the Humanities and Social Scie ...

says that contemporary economic and financial calamities have dispelled the notion that capitalism is a viable economic system, adding that "the fantasy that democracy exerts a force for economic justice has dissolved as the US government funnels trillions of dollars to banks and European central banks rig national governments and cut social programs to keep themselves afloat." According to

Quinn Slobodian Quinn Slobodian (born 1978) is a Canadian historian specialising in modern Germany and international history. He is currently Professor of International History at Boston University. Previously, he was the Marion Butler McLean Professor of the Hi ...

, one way capitalism undermines democracy is by "punching holes in the territory of the nation state" to create

special economic zones A special economic zone (SEZ) is an area in which the business and trade laws are different from the rest of the country. SEZs are located within a country's national borders, and their aims include increasing trade balance, employment, increas ...

, of which there are 5,400 around the globe, ranging from

tax havens A tax haven is a term, often used pejoratively, to describe a place with very low tax rates for non-domiciled investors, even if the official rates may be higher. In some older definitions, a tax haven also offers financial secrecy. However, ...

to "sites for low-wage production . . . often ringed by barbed wire," that he describes as "zones of exception with different laws and often no democratic oversight."

David Schweickart David Schweickart (born 1942) is an American mathematician and philosopher. He holds a BS in Mathematics from the University of Dayton, a PhD in Mathematics from the University of Virginia, and a PhD in Philosophy from Ohio State University. ...

wrote: "Ordinary people n capitalist societiesare deemed competent enough to select their political leaders-but not their bosses. Contemporary capitalism celebrates democracy, yet denies us our democratic rights at precisely the point where they might be utilized most immediately and concretely: at the place where we spend most of the active and alert hours of our adult lives".

Thomas Jefferson Thomas Jefferson (, 1743July 4, 1826) was an American Founding Fathers of the United States, Founding Father and the third president of the United States from 1801 to 1809. He was the primary author of the United States Declaration of Indepe ...

, one of the founders of the United States, said "I hope we shall crush ... in its birth the aristocracy of our moneyed corporations, which dare already to challenge our government to a trial of strength and bid defiance to the laws of our country". In a 29 April 1938 message to the

U. S. Congress The United States Congress is the legislative branch of the federal government of the United States. It is a bicameral legislature, including a lower body, the U.S. House of Representatives, and an upper body, the U.S. Senate. They both ...

,

Franklin D. Roosevelt Franklin Delano Roosevelt (January 30, 1882April 12, 1945), also known as FDR, was the 32nd president of the United States, serving from 1933 until his death in 1945. He is the longest-serving U.S. president, and the only one to have served ...

warned that the growth of private power could lead to

fascism Fascism ( ) is a far-right, authoritarian, and ultranationalist political ideology and movement. It is characterized by a dictatorial leader, centralized autocracy, militarism, forcible suppression of opposition, belief in a natural social hie ...

, arguing that "the liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it becomes stronger than their democratic state itself. That, in its essence, is fascism—ownership of government by an individual, by a group, or by any other controlling private power.Franklin D. Roosevelt, "Recommendations to the Congress to Curb Monopolies and the Concentration of Economic Power", April 29, 1938, in ''The Public Papers and Addresses of Franklin D. Roosevelt'', ed. Samuel I. Rosenman, vol. 7, (New York, MacMillan: 1941), pp. 305–315.Franklin D. Roosevelt
"Appendix A: Message from the President of the United States Transmitting Recommendations Relative to the Strengthening and Enforcement of Antitrust Laws"
''

The American Economic Review The ''American Economic Review'' is a monthly peer-reviewed academic journal first published by the American Economic Association in 1911. The current editor-in-chief is Erzo FP Luttmer, a professor of economics at Dartmouth College. The journal i ...

'', Vol. 32, No. 2, Part 2, Supplement, Papers Relating to the

Temporary National Economic Committee The Temporary National Economic Committee (TNEC) was established by a joint resolution of the United States Congress on June 16, 1938, and operated until its defunding on April 3, 1941. The TNEC's function was to study the concentration of economic ...

(Jun., 1942), pp. 119–128. Statistics of the

Bureau of Internal Revenue The Bureau of Internal Revenue'' ''(BIR; ) is a revenue service for the Philippine government, which is responsible for collecting more than half of the total tax revenues of the government. It is an agency of the Department of Finance and i ...

reveal the following figures for 1935: "Ownership of corporate assets: Of all corporations reporting from every part of the Nation, one-tenth of 1 percent of them owned 52 percent of the assets of all of them". U. S. President

Dwight D. Eisenhower Dwight David "Ike" Eisenhower (born David Dwight Eisenhower; October 14, 1890 – March 28, 1969) was the 34th president of the United States, serving from 1953 to 1961. During World War II, he was Supreme Commander of the Allied Expeditionar ...

criticized the notion of the confluence of corporate power and ''de facto'' fascism and in his 1961 Farewell Address to the Nation brought attention to the "conjunction of an immense military establishment and a large arms industry" in the United States and stressed "the need to maintain balance in and among national programs—balance between the private and the public economy, balance between cost and hoped for advantage". In a 1986 debate on Socialism vs Capitalism with

John Judis John B. Judis is an author and American journalist, an editor-at-large at ''Talking Points Memo'', a former senior writer at the ''National Journal'', and a former senior editor at ''The New Republic''. Education Judis was born in Chicago to a f ...

vs

Harry Binswanger Harry Binswanger (; born 1944) is an American professor and author. He is an Objectivist and a board member of the Ayn Rand Institute. He was an associate of Ayn Rand, working with her on ''The Ayn Rand Lexicon'' and helping her edit the second ...

and John Ridpath, intellectual

Christopher Hitchens Christopher Eric Hitchens (13 April 1949 – 15 December 2011) was a British and American author and journalist. He was the author of Christopher Hitchens bibliography, 18 books on faith, religion, culture, politics, and literature. He was born ...

said:

Exploitation of workers

Critics of capitalism view the system as inherently exploitative. In an economic sense, exploitation is often related to the

expropriation Nationalization (nationalisation in British English) is the process of transforming privately owned assets into public assets by bringing them under the public ownership of a national government or state. Nationalization contrasts with p ...

of labor for

profit Profit may refer to: Business and law * Profit (accounting), the difference between the purchase price and the costs of bringing to market * Profit (economics), normal profit and economic profit * Profit (real property), a nonpossessory inter ...

and based on

Karl Marx Karl Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, political theorist, economist, journalist, and revolutionary socialist. He is best-known for the 1848 pamphlet '' The Communist Manifesto'' (written with Friedrich Engels) ...

's version of the

labor theory of value The labor theory of value (LTV) is a theory of value that argues that the exchange value of a good or service is determined by the total amount of " socially necessary labor" required to produce it. The contrasting system is typically known as ...

. The labor theory of value was supported by classical economists like

David Ricardo David Ricardo (18 April 1772 – 11 September 1823) was a British political economist, politician, and member of Parliament. He is recognized as one of the most influential classical economists, alongside figures such as Thomas Malthus, Ada ...

and

Adam Smith Adam Smith (baptised 1723 – 17 July 1790) was a Scottish economist and philosopher who was a pioneer in the field of political economy and key figure during the Scottish Enlightenment. Seen by some as the "father of economics"——— or ...

who believed that "the value of a commodity depends on the relative quantity of labor which is necessary for its production". In ''

Das Kapital ''Capital: A Critique of Political Economy'' (), also known as ''Capital'' or (), is the most significant work by Karl Marx and the cornerstone of Marxian economics, published in three volumes in 1867, 1885, and 1894. The culmination of his ...

'', Marx identified the commodity as the basic unit of capitalist organization. Marx described a "common denominator" between commodities, in particular that commodities are the product of labor and are related to each other by an

exchange value In political economy and especially Marxian economics, exchange value () refers to one of the four major attributes of a commodity, i.e., an item or service produced for, and sold on the market, the other three attributes being use value, econo ...

(i.e.

price A price is the (usually not negative) quantity of payment or compensation expected, required, or given by one party to another in return for goods or services. In some situations, especially when the product is a service rather than a ph ...

). By using the labor theory of value,

Marxists Marxism is a political philosophy and method of socioeconomic analysis. It uses a dialectical and materialist interpretation of historical development, better known as historical materialism, to analyse class relations, social conflict, and ...

see a connection between labor and exchange value, in that commodities are exchanged depending on the

socially necessary labor time Socially necessary labour time in Marx's critique of political economy is what regulates the exchange value of commodities in trade. In short, socially necessary labour time refers to the average quantity of labour time that must be performed und ...

needed to produce them. However, due to the productive forces of industrial organization, laborers are seen as creating more exchange value during the course of the working day than the cost of their survival (food, shelter, clothing and so on). Marxists argue that capitalists are thus able to pay for this cost of survival while expropriating the excess labor (i.e.

surplus value In Marxian economics, surplus value is the difference between the amount raised through a sale of a product and the amount it cost to manufacture it: i.e. the amount raised through sale of the product minus the cost of the materials, plant and ...

). Marxists further argue that due to economic inequality, the purchase of labor cannot occur under "free" conditions. Since capitalists control the

means of production In political philosophy, the means of production refers to the generally necessary assets and resources that enable a society to engage in production. While the exact resources encompassed in the term may vary, it is widely agreed to include the ...

(e.g. factories, businesses, machinery and so on) and workers control only their labor, the worker is naturally coerced into allowing their labor to be exploited. Critics argue that exploitation occurs even if the exploited consents, since the definition of exploitation is independent of consent. In essence, workers must allow their labor to be exploited or face starvation. Since some degree of unemployment is typical in modern economies, Marxists argue that wages are naturally driven down in free market systems. Hence, even if a worker contests their wages, capitalists are able to find someone from the

reserve army of labor Reserve army of labour is a concept in Karl Marx's critique of political economy. It refers to the unemployed and underemployed in capitalist society. It is synonymous with "industrial reserve army" or "relative surplus population", except that ...

who is more desperate. The act (or threat) of striking has historically been an organized action to withhold labor from capitalists, without fear of individual retaliation. Some critics of capitalism, while acknowledging the necessity of

trade union A trade union (British English) or labor union (American English), often simply referred to as a union, is an organization of workers whose purpose is to maintain or improve the conditions of their employment, such as attaining better wages ...

ism, believe that trade unions simply reform an already exploitative system, leaving the system of exploitation intact.

Lysander Spooner Lysander Spooner (January 19, 1808 – May 14, 1887) was an American abolitionist, entrepreneur, lawyer, essayist, natural rights legal theorist, pamphleteer, political philosopher, and writer often associated with the Boston anarchist tr ...

argued that "almost all fortunes are made out of the capital and labour of other men than those who realize them. Indeed, large fortunes could rarely be made at all by one individual, except by his sponging capital and labour from others". Some

labor historians Labour or labor may refer to: * Childbirth, the delivery of a baby * Labour (human activity), or work ** Manual labour, physical work ** Wage labour, a socioeconomic relationship between a worker and an employer ** Organized labour and the labour ...

and scholars have argued that

unfree labor Forced labour, or unfree labour, is any work relation, especially in modern history, modern or Early Modern period, early modern history, in which people are employed against their will with the threat of poverty, destitution, detention (imp ...

—by

slaves Slavery is the ownership of a person as property, especially in regards to their labour. Slavery typically involves compulsory work, with the slave's location of work and residence dictated by the party that holds them in bondage. Enslavemen ...

,

indentured servants Indentured servitude is a form of labor in which a person is contracted to work without salary for a specific number of years. The contract called an "indenture", may be entered voluntarily for a prepaid lump sum, as payment for some good or ser ...

, prisoners, or other coerced persons—is compatible with capitalist relations. Tom Brass argued that unfree labor is acceptable to capital. Historian

Greg Grandin Greg Grandin (born 1962) is an American historian and author. He is a professor of history at Yale University. He previously taught at New York University. He is author of several books, including '' Fordlândia: The Rise and Fall of Henry For ...

argues that capitalism has its origins in slavery, saying that " en historians talk about the Atlantic market revolution, they are talking about capitalism. And when they are talking about capitalism, they are talking about slavery." Some scholars, including Edward E. Baptist,

Sven Beckert Sven Beckert is Laird Bell Professor of History at Harvard University, where he teaches the history of the United States in the nineteenth century, and global history. With Christine A. Desan, he is the co-director of the Program on the Study o ...

and Matthew Desmond, assert that slavery was an integral component in the violent development of American and global capitalism. The Slovenian continental philosopher

Slavoj Žižek Slavoj Žižek ( ; ; born 21 March 1949) is a Slovenian Marxist philosopher, cultural theorist and public intellectual. He is the international director of the Birkbeck Institute for the Humanities at the University of London, Global Distin ...

posits that the new era of global capitalism has ushered in new forms of

contemporary slavery Contemporary slavery, also sometimes known as modern slavery or neo-slavery, refers to institutional slavery that continues to exist in the 21st century. Estimates of the number of enslaved people range from around 38 million to 49.6 million, d ...

, including migrant workers deprived of basic civil rights on the

Arabian Peninsula The Arabian Peninsula (, , or , , ) or Arabia, is a peninsula in West Asia, situated north-east of Africa on the Arabian plate. At , comparable in size to India, the Arabian Peninsula is the largest peninsula in the world. Geographically, the ...

, the total control of workers in Asian

sweatshops A sweatshop or sweat factory is a cramped workplace with very poor and/or illegal working conditions, including little to no breaks, inadequate work space, insufficient lighting and ventilation, or uncomfortably or dangerously high or low temperat ...

and the use of forced labor in the exploitation of natural resources in

Central Africa Central Africa (French language, French: ''Afrique centrale''; Spanish language, Spanish: ''África central''; Portuguese language, Portuguese: ''África Central'') is a subregion of the African continent comprising various countries accordin ...

. Academics such as the

developmental psychologist Developmental psychology is the science, scientific study of how and why humans grow, change, and adapt across the course of their lives. Originally concerned with infants and children, the field has expanded to include adolescence, adult deve ...

Howard Gardner Howard Earl Gardner (born July 11, 1943) is an American developmental psychologist and the John H. and Elisabeth A. Hobbs Research Professor of Cognition and Education at Harvard University. He was a founding member of Harvard Project Zero in 1967 ...

have proposed the adoption of upper limits in individual wealth as "a solution that would make the world a better place".

Marxian economist Marxian economics, or the Marxian school of economics, is a heterodox school of political economic thought. Its foundations can be traced back to Karl Marx's critique of political economy. However, unlike critics of political economy, Marxian ...

Richard D. Wolff postulates that capitalist economies prioritize profits and capital accumulation over the social needs of communities, and that capitalist enterprises rarely include the workers in the basic decisions of the enterprise. Political economist Clara E. Mattei of the

New School for Social Research The New School for Social Research (NSSR), previously known as The University in Exile and The New School University, is a graduate-level educational division of The New School in New York City, United States. NSSR enrolls more than 1,000 stud ...

demonstrates that the imposition of fiscal, monetary and industrial

austerity In economic policy, austerity is a set of Political economy, political-economic policies that aim to reduce government budget deficits through Government spending, spending cuts, tax increases, or a combination of both. There are three prim ...

policies meant to discipline labor by reinforcing hierarchal wage relations and therefore protect the capitalist system through wage repression and the weakening of collective bargaining power by workers can increase their exploitation while boosting the profits of the ownership class, which she says is one of the primary drivers of the "global inequality trend". As an example, Mattei shows that over the last four decades in the United States the profit share of national output increased while labor's share plummeted, demonstrating a symmetrical relationship between owner profit and worker loss, where the former was taking from the latter. She adds that “an increase in exploitation was also evident, with real wages grossly lagging behind labor productivity.”

Imperialism, political oppression, and genocide

Near the start of the 20th century,

Vladimir Lenin Vladimir Ilyich Ulyanov ( 187021 January 1924), better known as Vladimir Lenin, was a Russian revolutionary, politician and political theorist. He was the first head of government of Soviet Russia from 1917 until Death and state funeral of ...

wrote that state use of military power to defend capitalist interests abroad was an inevitable corollary of monopoly capitalism. He argued that capitalism needs imperialism to survive. According to Lenin, the export of financial capital superseded the export of commodities; banking and industrial capital merged to form large financial cartels and trusts in which production and distribution are highly centralized; and monopoly capitalists influenced state policy to carve up the world into spheres of interest. These trends led states to defend their capitalist interests abroad through military power. According to economic anthropologist

Jason Hickel Jason Edward Hickel (born 1982) is an anthropologist and professor at the Autonomous University of Barcelona. Hickel's research and writing focuses on economic anthropology and development, and is particularly opposed to capitalism, neocolonial ...

, capitalism requires the accumulation of excess wealth in the hands of economic elites for the purpose of large scale investment, continuous growth and expansion, and enormous amounts of cheap labor. As such, there was never and could never have been a gradual or peaceful transition to capitalism, and that "organized violence, mass impoverishment, and the destruction of self-sufficient subsistence economies" ushered in the capitalist era. Its emergence was fueled by immiseration and extreme violence that accompanied

enclosure Enclosure or inclosure is a term, used in English landownership, that refers to the appropriation of "waste" or "common land", enclosing it, and by doing so depriving commoners of their traditional rights of access and usage. Agreements to enc ...

and

colonization 475px, Map of the year each country achieved List of sovereign states by date of formation, independence. Colonization (British English: colonisation) is a process of establishing occupation of or control over foreign territories or peoples f ...

, with colonized peoples becoming enslaved workers producing products that were then processed by European peasants, dispossessed by enclosure, who filled the factories in desperation as exploited cheap labor. Hickel adds that there was fierce resistance to these developments, as that the period 1500 to the 1800s, "right into the Industrial Revolution, was among the bloodiest, most tumultuous times in world history." Sociologist

David Nibert David Alan Nibert (born 1953) is an American sociologist, author, activist and professor of sociology at Wittenberg University. He is the co-organizer of the Section on Animals and Society of the American Sociological Association. In 2005, he r ...

argues that while capitalism "turned out to be every bit as violent and oppressive as the social systems dominated by the old aristocrats", it also included "an additional and pernicious peril—the necessity for continuous growth and expansion". As an example of this, Nibert points to the mass killing of millions of buffalo on the

Great Plains The Great Plains is a broad expanse of plain, flatland in North America. The region stretches east of the Rocky Mountains, much of it covered in prairie, steppe, and grassland. They are the western part of the Interior Plains, which include th ...

and the subjugation and expulsion of the indigenous population by the U.S. military in the 19th century for the purpose of expanding ranching operations, and rearing livestock for the purpose of profit. Capitalism and capitalist governments have also been criticized by socialists as

oligarchic Oligarchy (; ) is a form of government in which power rests with a small number of people. Members of this group, called oligarchs, generally hold usually hard, but sometimes soft power through nobility, fame, wealth, or education; or throug ...

in nature, due to the inevitable inequality. The

military–industrial complex The expression military–industrial complex (MIC) describes the relationship between a country's military and the Arms industry, defense industry that supplies it, seen together as a vested interest which influences public policy. A driving fac ...

, mentioned in

Dwight D. Eisenhower Dwight David "Ike" Eisenhower (born David Dwight Eisenhower; October 14, 1890 – March 28, 1969) was the 34th president of the United States, serving from 1953 to 1961. During World War II, he was Supreme Commander of the Allied Expeditionar ...

's presidential farewell address, appears to play a significant role in the American capitalist system. It may be one of the driving forces of American militarism and intervention abroad. The United States has used military force and has encouraged and facilitated

state terrorism State terrorism is terrorism conducted by a state against its own citizens or another state's citizens. It contrasts with '' state-sponsored terrorism'', in which a violent non-state actor conducts an act of terror under sponsorship of a state. ...

and mass violence to entrench

neoliberal Neoliberalism is a political and economic ideology that advocates for free-market capitalism, which became dominant in policy-making from the late 20th century onward. The term has multiple, competing definitions, and is most often used pej ...

capitalism in the

Global South Global North and Global South are terms that denote a method of grouping countries based on their defining characteristics with regard to socioeconomics and politics. According to UN Trade and Development (UNCTAD), the Global South broadly com ...

, protect the interests of U.S. economic elites, and to crush any possible resistance to this entrenchment, especially during the

Cold War The Cold War was a period of global Geopolitics, geopolitical rivalry between the United States (US) and the Soviet Union (USSR) and their respective allies, the capitalist Western Bloc and communist Eastern Bloc, which lasted from 1947 unt ...

, with significant cases being

Brazil Brazil, officially the Federative Republic of Brazil, is the largest country in South America. It is the world's List of countries and dependencies by area, fifth-largest country by area and the List of countries and dependencies by population ...

,

Chile Chile, officially the Republic of Chile, is a country in western South America. It is the southernmost country in the world and the closest to Antarctica, stretching along a narrow strip of land between the Andes, Andes Mountains and the Paci ...

and

Indonesia Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania, between the Indian Ocean, Indian and Pacific Ocean, Pacific oceans. Comprising over List of islands of Indonesia, 17,000 islands, including Sumatra, ...

.

Inefficiency, irrationality, and unpredictability

Some opponents criticize capitalism's

inefficiency Efficiency is the often measurable ability to avoid making mistakes or wasting materials, energy, efforts, money, and time while performing a task. In a more general sense, it is the ability to do things well, successfully, and without waste. ...

. They note a shift from pre-industrial

reuse Reuse is the action or practice of using an item, whether for its original purpose (conventional reuse) or to fulfill a different function (creative reuse or repurposing). It should be distinguished from recycling, which is the breaking down of ...

and thriftiness before capitalism to a consumer-based economy that pushes "ready-made" materials. It is argued that a

sanitation Sanitation refers to public health conditions related to clean drinking water and treatment and disposal of human excreta and sewage. Preventing human contact with feces is part of sanitation, as is hand washing with soap. Sanitation systems ...

industry arose under capitalism that deemed trash valueless—a significant break from the past when much "waste" was used and reused almost indefinitely. In the process, critics say, capitalism has created a profit driven system based on selling as many products as possible. Critics relate the "ready-made" trend to a growing garbage problem in which, as of 2008, 4.5 pounds of trash are generated per person each day (compared to 2.7 pounds in 1960).

Anti-capitalist Anti-capitalism is a political ideology and Political movement, movement encompassing a variety of attitudes and ideas that oppose capitalism. Anti-capitalists seek to combat the worst effects of capitalism and to eventually replace capitalism ...

groups with an emphasis on conservation include

eco-socialists Eco-socialism (also known as green socialism, socialist ecology, ecological materialism, or revolutionary ecology) is an ideology merging aspects of socialism with that of green politics, ecology and alter-globalization or anti-globalization. E ...

and social ecologists.

Planned obsolescence In economics and industrial design, planned obsolescence (also called built-in obsolescence or premature obsolescence) is the concept of policies planning or designing a good (economics), product with an artificially limited Product lifetime, u ...

has been criticized as a wasteful practice under capitalism. By designing products to wear out faster than need be, new consumption is generated. This would benefit corporations by increasing sales while at the same time generating excessive waste. A well-known example is the charge that Apple designed its

iPod The iPod is a series of portable media players and multi-purpose mobile devices that were designed and marketed by Apple Inc. from 2001 to 2022. The iPod Classic#1st generation, first version was released on November 10, 2001, about mon ...

to fail after 18 months. Critics view planned obsolescence as wasteful and an inefficient use of resources. Other authors such as

Naomi Klein Naomi Klein (born May 8, 1970) is a Canadian author, social activist, and filmmaker known for her political analyses; support of ecofeminism, organized labour, and criticism of corporate globalization, fascism and Criticism of capitalism, ca ...

have criticized brand-based marketing for putting more emphasis on the company's name-brand than on manufacturing products. Some economists, most notably

Marxian economists Marxian is a term generally used to refer to things related to Karl Marx other than Marxism. It can refer to: * Marxian economics * Marxian class theory See also * Marxism Marxism is a political philosophy and method of socioeconomic a ...

, argue that the system of perpetual capital accumulation leads to irrational outcomes and a mis-allocation of resources as industries and jobs are created for the sake of making money as opposed to satisfying actual demands and needs.

Market failure

Market failure In neoclassical economics, market failure is a situation in which the allocation of goods and services by a free market is not Pareto efficient, often leading to a net loss of economic value.Paul Krugman and Robin Wells Krugman, Robin Wells (2006 ...

is a term used by economists to describe the condition where the allocation of goods and services by a market is not efficient. Keynesian economist

Paul Krugman Paul Robin Krugman ( ; born February 28, 1953) is an American New Keynesian economics, New Keynesian economist who is the Distinguished Professor of Economics at the CUNY Graduate Center, Graduate Center of the City University of New York. He ...

views this scenario in which individuals' pursuit of self-interest leads to bad results for society as a whole.Krugman, Paul, Wells, Robin, ''Economics'', Worth Publishers, New York, (2006)

John Maynard Keynes John Maynard Keynes, 1st Baron Keynes ( ; 5 June 1883 – 21 April 1946), was an English economist and philosopher whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. Originall ...

preferred

economic interventionism A market intervention is a policy or measure that modifies or interferes with a market, typically done in the form of state action, but also by philanthropic and political-action groups. Market interventions can be done for a number of reas ...

by government to free markets. Some believe that the lack of

perfect information Perfect information is a concept in game theory and economics that describes a situation where all players in a game or all participants in a market have knowledge of all relevant information in the system. This is different than complete informat ...

and

perfect competition In economics, specifically general equilibrium theory, a perfect market, also known as an atomistic market, is defined by several idealizing conditions, collectively called perfect competition, or atomistic competition. In Economic model, theoret ...

in a free market is grounds for government intervention. Others perceive certain unique problems with a free market including:

monopolies A monopoly (from Greek and ) is a market in which one person or company is the only supplier of a particular good or service. A monopoly is characterized by a lack of economic competition to produce a particular thing, a lack of viable sub ...

,

monopsonies In economics, a monopsony is a market structure in which a single buyer substantially controls the market as the major purchaser of goods and services offered by many would-be sellers. The microeconomic theory of monopsony assumes a single enti ...

,

insider trading Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) based on material, nonpublic information about the company. In various countries, some kinds of trading based on insider informati ...

and

price gouging Price gouging is the practice of increasing the prices of goods, services, or commodities to a level much higher than is considered reasonable or fair by some. This commonly applies to price increases of basic necessities after natural disaste ...

.

Inequality

Day 9 Occupy Wall Street September 25 2011 Shankbone 25

Critics argue that capitalism is associated with the unfair

distribution of wealth The distribution of wealth is a comparison of the wealth of various members or groups in a society. It shows one aspect of economic inequality or heterogeneity in economics, economic heterogeneity. The distribution of wealth differs from the i ...

and power; a tendency toward market monopoly or

oligopoly An oligopoly () is a market in which pricing control lies in the hands of a few sellers. As a result of their significant market power, firms in oligopolistic markets can influence prices through manipulating the supply function. Firms in ...

(and government by

oligarchy Oligarchy (; ) is a form of government in which power rests with a small number of people. Members of this group, called oligarchs, generally hold usually hard, but sometimes soft power through nobility, fame, wealth, or education; or t ...

); imperialism, counter-revolutionary wars and various forms of economic and cultural exploitation; repression of workers and

trade union A trade union (British English) or labor union (American English), often simply referred to as a union, is an organization of workers whose purpose is to maintain or improve the conditions of their employment, such as attaining better wages ...

ists and phenomena such as

social alienation Social alienation is a person's feeling of disconnection from a group whether friends, family, or wider society with which the individual has an affiliation. Such alienation has been described as "a condition in social relationships reflected b ...

, economic inequality, unemployment and economic instability. Critics have argued that there is an inherent tendency toward oligopolistic structures when ''

laissez-faire ''Laissez-faire'' ( , from , ) is a type of economic system in which transactions between private groups of people are free from any form of economic interventionism (such as subsidies or regulations). As a system of thought, ''laissez-faire'' ...

'' is combined with capitalist

private property Private property is a legal designation for the ownership of property by non-governmental Capacity (law), legal entities. Private property is distinguishable from public property, which is owned by a state entity, and from Collective ownership ...

. Capitalism is regarded by many socialists to be irrational in that production and the direction of the economy are unplanned, creating many inconsistencies and internal contradictions and thus should be controlled through

public policy Public policy is an institutionalized proposal or a Group decision-making, decided set of elements like laws, regulations, guidelines, and actions to Problem solving, solve or address relevant and problematic social issues, guided by a conceptio ...

. In the early 20th century,

Vladimir Lenin Vladimir Ilyich Ulyanov ( 187021 January 1924), better known as Vladimir Lenin, was a Russian revolutionary, politician and political theorist. He was the first head of government of Soviet Russia from 1917 until Death and state funeral of ...

argued that state use of military power to defend capitalist interests abroad was an inevitable corollary of monopoly capitalism. In 2019,

Marxian Economist Marxian economics, or the Marxian school of economics, is a heterodox school of political economic thought. Its foundations can be traced back to Karl Marx's critique of political economy. However, unlike critics of political economy, Marxian ...

Richard D. Wolff argued that Capitalism is unstable, Capitalism is unequal, and fundamentally Undemocratic. In a 1965 letter to Carlos Quijano, editor of ''

Marcha Marcha (born Margaretha Hendrika Maria Groeneveld on 2 July 1956), also known as Marga Bult, is a Dutch singer and television presenter, who has been a member of the groups Tulip, Babe and Dutch Divas and is also known for her participation in t ...

'', a weekly newspaper published in Montevideo, Uruguay,

Che Guevara Ernesto "Che" Guevara (14th May 1928 – 9 October 1967) was an Argentines, Argentine Communist revolution, Marxist revolutionary, physician, author, Guerrilla warfare, guerrilla leader, diplomat, and Military theory, military theorist. A majo ...

wrote:

The laws of capitalism, which are blind and are invisible to ordinary people, act upon the individual without he or she being aware of it. One sees only the vastness of a seemingly infinite horizon ahead. That is how it is painted by capitalist propagandists who purport to draw a lesson from the example of Rockefeller—whether or not it is true—about the possibilities of individual success. The amount of poverty and suffering required for a Rockefeller to emerge, and the amount of depravity entailed in the accumulation of a fortune of such magnitude, are left out of the picture, and it is not always possible for the popular forces to expose this clearly. ... It is a contest among wolves. One can win only at the cost of the failure of others.GUevara, Che (12 March 1965
"From Algiers, for Marcha: The Cuban Revolution Today"
Retrieved 19 August 2020.

Total US family wealth timeline by wealth group

A modern critic of capitalism is

Ravi Batra Raveendra Nath "Ravi" Batra (born June 27, 1943) is an Indian-American economist, author, and professor at Southern Methodist University. Batra is the author of six bestselling books, two of which appeared on ''The New York Times'' Best Seller l ...

, who focuses on inequality as a source of immiserization but also of system failure. Batra popularised the concept "share of wealth held by richest 1%" as an indicator of inequality and an important determinant of depressions in his best-selling books in the 1980s. The scholars

Kristen Ghodsee Kristen Rogheh Ghodsee (born April 26, 1970) is an American ethnographer and Professor of Russian and East European Studies at the University of Pennsylvania. She is primarily known for her ethnographic work on post-Communist Bulgaria as well as ...

and Mitchell A. Orenstein suggest that left to its own devices, capitalism will result in a small group of economic elites capturing the majority of wealth and power in society. Dylan Sullivan and

Jason Hickel Jason Edward Hickel (born 1982) is an anthropologist and professor at the Autonomous University of Barcelona. Hickel's research and writing focuses on economic anthropology and development, and is particularly opposed to capitalism, neocolonial ...

argue that

poverty Poverty is a state or condition in which an individual lacks the financial resources and essentials for a basic standard of living. Poverty can have diverse Biophysical environmen ...

continues to exist in the contemporary global capitalist system in spite of it being highly productive because it is undemocratic and has maintained conditions of extreme inequality where masses of working people, who have no ownership or control over the means of production, have their labor power "appropriated by a ruling class or an external imperial power," and are cut off from common land and resources. They further contend that capitalism needs significant levels of inequality as capital accumulation requires access to cheap labor, and lots of it, as without it the system would be crippled. In the United States, the shares of earnings and wealth of the households in the top 1 percent of the corresponding distributions are 21 percent (in 2006) and 37 percent (in 2009), respectively. Critics, such as Ravi Batra, argue that the capitalist system has inherent biases favoring those who already possess greater resources. The inequality may be propagated through inheritance and economic policy. Rich people are in a position to give their children a better education and inherited wealth and that this can create or increase large differences in wealth between people who do not differ in ability or effort. One study shows that in the United States 43.35% of the people in the ''

Forbes ''Forbes'' () is an American business magazine founded by B. C. Forbes in 1917. It has been owned by the Hong Kong–based investment group Integrated Whale Media Investments since 2014. Its chairman and editor-in-chief is Steve Forbes. The co ...

'' magazine "400 richest individuals" list were already rich enough at birth to qualify. Another study indicated that in the United States wealth, race and schooling are important to the inheritance of economic status, but that IQ is not a major contributor and the genetic transmission of IQ is even less important. Batra has argued that the tax and benefit legislation in the United States since the

Reagan presidency Ronald Reagan's tenure as the List of presidents of the United States, 40th president of the United States began with First inauguration of Ronald Reagan, his first inauguration on January 20, 1981, and ended on January 20, 1989. Reagan, a Rep ...

has contributed greatly to the inequalities and economic problems and should be repealed.

Critics of capitalism, particularly Marxists, identify market instability as a permanent feature of capitalist economy. Marx believed that the unplanned and explosive growth of capitalism does not occur in a smooth manner, but is interrupted by periods of overproduction in which stagnation or decline occur (i.e.

recessions In economics, a recession is a business cycle contraction that occurs when there is a period of broad decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be tr ...

). In the view of Marxists, several contradictions in the capitalist

mode of production In the Marxist theory of historical materialism, a mode of production (German: ''Produktionsweise'', "the way of producing") is a specific combination of the: * Productive forces: these include human labour power and means of production (tools, ...

are present, particularly the internal contradiction between anarchy in the sphere of capital (i.e.

free market In economics, a free market is an economic market (economics), system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of ...

) and socialised production in the sphere of labor (i.e.

industrialism Industrialisation ( UK) or industrialization ( US) is the period of social and economic change that transforms a human group from an agrarian society into an industrial society. This involves an extensive reorganisation of an economy for th ...

). In ''

The Communist Manifesto ''The Communist Manifesto'' (), originally the ''Manifesto of the Communist Party'' (), is a political pamphlet written by Karl Marx and Friedrich Engels, commissioned by the Communist League and originally published in London in 1848. The ...

'', Marx and Engels highlighted what they saw as a uniquely capitalist juxtaposition of overabundance and poverty: "Society suddenly finds itself put back into a state of momentary barbarism. And why? Because there is too much civilization, too much means of subsistence, too much industry, too much commerce". Some scholars blame the

2008 financial crisis The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...

on the neoliberal capitalist model. Following the banking crisis of 2007, economist and former Chair of the

Federal Reserve The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of ...

,

Alan Greenspan Alan Greenspan (born March 6, 1926) is an American economist who served as the 13th chairman of the Federal Reserve from 1987 to 2006. He worked as a private adviser and provided consulting for firms through his company, Greenspan Associates L ...

told the United States Congress on 23 October 2008 that " is modern risk-management paradigm held sway for decades. The whole intellectual edifice, however, collapsed in the summer of last year", and that "I made a mistake in presuming that the self-interests of organizations, specifically banks and others, were such that they were best capable of protecting their own shareholders and their equity in firms ... I was shocked".

Property

Pierre-Joseph Proudhon Pierre-Joseph Proudhon (, ; ; 1809 – 19 January 1865) was a French anarchist, socialist, philosopher, and economist who founded mutualist philosophy and is considered by many to be the "father of anarchism". He was the first person to ca ...

and

Friedrich Engels Friedrich Engels ( ;"Engels"
''Random House Webster's Unabridged Dictionary''.free market In economics, a free market is an economic market (economics), system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of ...

is not necessarily free, but weighted towards those who already own private property. They view capitalist regulations, including the enforcement of

private property Private property is a legal designation for the ownership of property by non-governmental Capacity (law), legal entities. Private property is distinguishable from public property, which is owned by a state entity, and from Collective ownership ...

on land and exclusive rights to natural resources, as unjustly

enclosing Enclosure or inclosure is a term, used in English landownership, that refers to the appropriation of "waste" or "common land", enclosing it, and by doing so depriving commoners of their traditional rights of access and usage. Agreements to enc ...

upon what should be owned by all, forcing those without private property to sell their labor to capitalists and landlords in a market favorable to the latter, thus forcing workers to accept low wages to survive. In his criticism of capitalism, Proudhon believed that the emphasis on private property is the problem. He argued that

property is theft Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, r ...

, arguing that private property leads to despotism: "Now, property necessarily engenders despotism—the government of caprice, the reign of libidinous pleasure. That is so clearly the essence of property that, to be convinced of it, one need but remember what it is, and observe what happens around him. Property is the right to use and abuse". Many left-wing anarchists, such as anarchist communists, believe in replacing capitalist private property with a system where people can lay claim to things based on personal use and claim that " rivateproperty is the domination of an individual, or a coalition of individuals, over things; it is not the claim of any person or persons to the use of things" and "this is, usufruct, a very different matter. Property means the monopoly of wealth, the right to prevent others using it, whether the owner needs it or not". Mutualists and some anarchists support markets and private property, but not in their present form. They argue that particular aspects of modern capitalism violate the ability of individuals to trade in the absence of coercion. Mutualists support markets and private property in the product of labor, but only when these markets guarantee that workers will realize for themselves the value of their labor. In recent times, most economies have extended private property rights to include such things as

patents A patent is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an sufficiency of disclosure, enabling discl ...

and

copyrights A copyright is a type of intellectual property that gives its owner the exclusive legal right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, ...

. Critics see these so-called

intellectual property Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, co ...

laws as coercive against those with few prior resources. They argue that such regulations discourage the sharing of ideas and encourage nonproductive

rent seeking Rent-seeking is the act of growing one's existing wealth by manipulating the social or political environment without creating new wealth. Rent-seeking activities have negative effects on the rest of society. They result in reduced economic effic ...

behavior, both of which enact a

deadweight loss In economics, deadweight loss is the loss of societal economic welfare due to production/consumption of a good at a quantity where marginal benefit (to society) does not equal marginal cost (to society). In other words, there are either goods ...

on the economy, erecting a prohibitive barrier to entry into the market. Not all pro-capitalists support the concept of copyrights, but those who do argue that compensation to the creator is necessary as an incentive.

Environmental sustainability

Many aspects of capitalism have come under attack from the

anti-globalization movement The anti-globalization movement, or counter-globalization movement, is a social movement critical of economic globalization. The movement is also commonly referred to as the global justice movement, alter-globalization movement, anti-globalist m ...

, which is primarily opposed to

corporate capitalism In social science and economics, corporate capitalism is a capitalist marketplace characterized by the dominance of hierarchical and bureaucratic corporations. Overview In the developed world, corporations dominate the marketplace, compri ...

.

Environmentalist Environmentalism is a broad Philosophy of life, philosophy, ideology, and social movement about supporting life, habitats, and surroundings. While environmentalism focuses more on the environmental and nature-related aspects of Green politics, g ...

s and scholars have argued that capitalism requires continual

economic growth In economics, economic growth is an increase in the quantity and quality of the economic goods and Service (economics), services that a society Production (economics), produces. It can be measured as the increase in the inflation-adjusted Outp ...

and that it will inevitably deplete the finite natural resources of Earth and cause

mass extinctions An extinction event (also known as a mass extinction or biotic crisis) is a widespread and rapid decrease in the biodiversity on Earth. Such an event is identified by a sharp fall in the diversity and abundance of multicellular organisms. It occ ...

of animal and plant life. Such critics argue that while

neoliberalism Neoliberalism is a political and economic ideology that advocates for free-market capitalism, which became dominant in policy-making from the late 20th century onward. The term has multiple, competing definitions, and is most often used pe ...

, the ideological backbone of contemporary globalized capitalism, has indeed increased global trade, it has also destroyed traditional ways of life, exacerbated inequality, increased global

poverty Poverty is a state or condition in which an individual lacks the financial resources and essentials for a basic standard of living. Poverty can have diverse Biophysical environmen ...

, and that environmental indicators indicate massive

environmental degradation Environment most often refers to: __NOTOC__ * Natural environment, referring respectively to all living and non-living things occurring naturally and the physical and biological factors along with their chemical interactions that affect an organism ...

since the late 1970s. Some scholars argue that the capitalist approach to

environmental economics Environmental economics is a sub-field of economics concerned with environmental issues. It has become a widely studied subject due to growing environmental concerns in the twenty-first century. Environmental economics "undertakes theoretical ...

does not take into consideration the preservation of natural resources and that capitalism creates three ecological problems: growth, technology, and consumption. The growth problem results from the nature of capitalism, as it focuses around the pursuit of limitless

economic growth In economics, economic growth is an increase in the quantity and quality of the economic goods and Service (economics), services that a society Production (economics), produces. It can be measured as the increase in the inflation-adjusted Outp ...

and the accumulation of capital. The innovation of new technologies has an impact on the environmental future as they serve as a capitalist tool in which environmental technologies can result in the expansion of the system. Consumption is focused around the capital accumulation of commodities and neglects the use-value of production. Professor Radhika Desai, director of the Geopolitical Economy Research Group at the

University of Manitoba The University of Manitoba (U of M, UManitoba, or UM) is a public research university in Winnipeg, Manitoba, Canada. Founded in 1877, it is the first university of Western Canada. Both by total student enrolment and campus area, the University of ...

, contends that ecological crises such as

climate change Present-day climate change includes both global warming—the ongoing increase in Global surface temperature, global average temperature—and its wider effects on Earth's climate system. Climate variability and change, Climate change in ...

,

pollution Pollution is the introduction of contaminants into the natural environment that cause harm. Pollution can take the form of any substance (solid, liquid, or gas) or energy (such as radioactivity, heat, sound, or light). Pollutants, the component ...

and

biodiversity loss Biodiversity loss happens when plant or animal species disappear completely from Earth (extinction) or when there is a decrease or disappearance of species in a specific area. Biodiversity loss means that there is a reduction in Biodiversity, b ...

occur when "capitalist firms compete to appropriate and plunder the free resources of nature and when this very appropriation and plunder forces working people to overexploit their ever-shrinking share of these resources." One of the main modern criticism to the

sustainability Sustainability is a social goal for people to co-exist on Earth over a long period of time. Definitions of this term are disputed and have varied with literature, context, and time. Sustainability usually has three dimensions (or pillars): env ...

of capitalism is related to the so-called commodity chains, or production/consumption chains. These terms refer to the network of transfers of materials and commodities that is currently part of the functioning of the global capitalist system. Examples include high tech commodities produced in countries with low average wages by multinational firms and then being sold in distant high income countries; materials and resources being extracted in some countries, turned into finished products in some others and sold as commodities in further ones; and countries exchanging with each other the same kind of commodities for the sake of consumers' choice (e.g. Europe both exporting and importing cars to and from the United States). According to critics, such processes, all of which produce pollution and waste of resources, are an integral part of the functioning of capitalism (i.e. its "

metabolism Metabolism (, from ''metabolē'', "change") is the set of life-sustaining chemical reactions in organisms. The three main functions of metabolism are: the conversion of the energy in food to energy available to run cellular processes; the co ...

"). Critics note that the statistical methods used in calculating

ecological footprint The ecological footprint measures human demand on natural capital, i.e. the quantity of nature it takes to support people and their economies. It tracks human demand on nature through an ecological accounting system. The accounts contrast the biolo ...

have been criticized and some find the whole concept of counting how much land is used to be flawed, arguing that there is nothing intrinsically negative about using more land to improve living standards (rejection of the

intrinsic In science and engineering, an intrinsic property is a property of a specified subject that exists itself or within the subject. An extrinsic property is not essential or inherent to the subject that is being characterized. For example, mass i ...

value of nature). Under what anti-capitalists such as

Murray Bookchin Murray Bookchin (; January 14, 1921 – July 30, 2006) was an American social theorist, author, orator, historian, and political philosopher. Influenced by G. W. F. Hegel, Karl Marx, and Peter Kropotkin, he was a pioneer in the environmental ...

call the "grow or die" imperative of capitalism, they say there is little reason to expect hazardous consumption and production practices to change in a timely manner. They also claim that markets and states invariably drag their feet on substantive environmental reform and are notoriously slow to adopt viable sustainable technologies.

Immanuel Wallerstein Immanuel Maurice Wallerstein (; September 28, 1930 – August 31, 2019) was an American sociologist and economic historian. He is perhaps best known for his development in sociology of world-systems approach."Wallerstein, Immanuel (1930– )." ...

, referring to the externalization of costs as the "dirty secret" of capitalism, claims that there are built-in limits to ecological reform and that the costs of doing business in the world capitalist economy are ratcheting upward because of deruralization and democratization. A team of Finnish scientists hired by the UN Secretary-General to aid the 2019 Global Sustainable Development Report assert that capitalism as we know it is moribund, primarily because it focuses on short term profits and fails to look after the long term needs of people and the environment which is being subjected to unsustainable exploitation. Their report goes on to link many seemingly disparate contemporary crises to this system, including environmental factors such as

global warming Present-day climate change includes both global warming—the ongoing increase in global average temperature—and its wider effects on Earth's climate system. Climate change in a broader sense also includes previous long-term changes ...

and accelerated species extinctions and also societal factors such as rising economic inequality,

unemployment Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is the proportion of people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work du ...

, sluggish economic growth, rising debt levels, and impuissant governments unable to deal with these problems. The scientists say a new economic model, one which focuses on sustainability and efficiency and not profit and growth, will be needed as decades of robust economic growth driven by abundant resources and cheap energy is rapidly coming to a close. Another group of scientists contributing to the 2020 "Scientists warning on affluence" argue that a shift away from paradigms fixating on economic growth and the "profit-driven mechanism of prevailing economic systems" will be necessary to mitigate

human impacts on the environment Human impact on the environment (or anthropogenic environmental impact) refers to changes to biophysical environments and to ecosystems, biodiversity, and natural resources caused directly or indirectly by humans. Modifying the environment to ...

, and suggest a range of ideas from the reformist to the radical, with the latter consisting of

degrowth Degrowth is an Academic research, academic and social Social movement, movement critical of the concept of economic growth, growth in Real gross domestic product, gross domestic product as a measure of Human development (economics), human and econ ...

,

eco-socialism Eco-socialism (also known as green socialism, socialist ecology, ecological materialism, or revolutionary ecology) is an ideology merging aspects of socialism with that of green politics, ecology and alter-globalization or anti-globalization. E ...

and

eco-anarchism Green anarchism, also known as ecological anarchism or eco-anarchism, is an anarchist school of thought that focuses on ecology and environmental issues. It is an anti-capitalism, anti-capitalist and anti-authoritarianism, anti-authoritarian form ...

. Some scientists contend that the rise of capitalism, which itself developed out of European

imperialism Imperialism is the maintaining and extending of Power (international relations), power over foreign nations, particularly through expansionism, employing both hard power (military and economic power) and soft power (diplomatic power and cultura ...

and

colonialism Colonialism is the control of another territory, natural resources and people by a foreign group. Colonizers control the political and tribal power of the colonised territory. While frequently an Imperialism, imperialist project, colonialism c ...

of the 15th and 16th centuries, marks the emergence of the

Anthropocene ''Anthropocene'' is a term that has been used to refer to the period of time during which human impact on the environment, humanity has become a planetary force of change. It appears in scientific and social discourse, especially with respect to ...

epoch, in which human beings started to have significant and mostly negative impacts on the earth system. Others have warned that contemporary global capitalism "requires fundamental changes" to mitigate the worst environmental impacts, including the "abolition of perpetual economic growth, properly pricing

externalities In economics, an externality is an indirect cost (external cost) or indirect benefit (external benefit) to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be considered as unpriced ...

, a rapid exit from fossil-fuel use, strict regulation of markets and property acquisition, reining in corporate lobbying, and the empowerment of women".

Jason Hickel Jason Edward Hickel (born 1982) is an anthropologist and professor at the Autonomous University of Barcelona. Hickel's research and writing focuses on economic anthropology and development, and is particularly opposed to capitalism, neocolonial ...

writes that capitalism creates pressures for

population growth Population growth is the increase in the number of people in a population or dispersed group. The World population, global population has grown from 1 billion in 1800 to 8.2 billion in 2025. Actual global human population growth amounts to aroun ...

: "more people means more labour, cheaper labour, and more consumers." He argues that continued population growth makes the challenge of sustainability even more difficult, but adds that even if the population leveled off, capitalism will simply get already existing consumers to increase their consumption, as consumption rates have always outpaced population growth rates. In 2024 a group of experts including

Michael E. Mann Michael Evan Mann (born 1965) is an American climatologist and geophysicist. He is the director of the Center for Science, Sustainability & the Media at the University of Pennsylvania. Mann has contributed to the scientific understanding of his ...

and

Naomi Oreskes Naomi Oreskes (; born November 25, 1958) is an American historian of science. She became Professor of the History of Science and Affiliated Professor of Earth and Planetary Sciences at Harvard University in 2013, after 15 years as Professor of H ...

published "An urgent call to end the age of destruction and forge a just and sustainable future". They made an extensive review of existing scientific literature about the issue. They put the blame for the ecological crisis on "imperialism, extractive capitalism, and a surging population" and proposed a paradigm shift that replaces it with a socio-economic model prioritizing sustainability, resilience, justice, kinship with nature, communal well-being. They described many ways in which the transition can be achieved.

Profit motive

The majority of criticisms against the

profit motive In economics, the profit motive is the motivation of firms that operate so as to maximize their profits. Mainstream microeconomic theory posits that the ultimate goal of a business is "to make money" - not in the sense of increasing the firm ...

centre on the idea that the profit motive encourages

selfishness Selfishness is being concerned excessively or exclusively for oneself or one's own advantage, pleasure, or welfare, regardless of others. Selfishness is the opposite of ''altruism'' or selflessness, and has also been contrasted (as by C. S. Lewis ...

and

greed Greed (or avarice, ) is an insatiable desire for material gain (be it food, money, land, or animate/inanimate possessions) or social value, such as status or power. Nature of greed The initial motivation for (or purpose of) greed and a ...

, rather than serving the public good or necessarily creating an increase in net wealth. Critics of the profit motive argue that companies disregard morals or public safety in the pursuit of profits. Capitalists seek to reduce spending to increase profits, often coming at the expense of workers, such as the cutting of wages and downsizing, causing

unemployment Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is the proportion of people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work du ...

. The reason why the profit motive is harmful is because of the fundamental contradiction between the interests of capitalists and workers, as capitalists want to pay their workers as little as possible and work them as much as possible to increase profits, whereas workers want to be paid fairly and have their increased productivity result in fewer working hours. This fundamental contradiction, critics argue, shows how illogical capitalism is, as it is a system in which two classes have fundamentally opposite interests which create conflict. Recently, a compelling criticism of unmoderated capitalism has emerged: it prioritizes capital over human well-being, except where human well-being contributes to capital production. Critics argue that such a system tends to reward sociopathic behavior. Consequently, they contend that pure (unmoderated) capitalism is inherently unsuitable as a foundation for society. As pure capitalistic models develop, they foster an increase in sociopathic behavior, which ultimately degrades societal functioning, defined by the well-being of most of its members. The detrimental processes associated with excessive sociopathic behavior include the spread of disinformation, the implementation of policies that create severe economic inequalities, and the manipulation of legal and judicial systems to benefit capital flow without regard for the majority's welfare. In response to this criticism, some advocate for moderated capitalism, which promotes policies that value human well-being. This approach creates reward structures that are not solely tied to capital. However, one counterargument is that in a global society with diverse economic models, pure capitalism might prevail over moderated capitalism in the long run because it generates more economic power.

Comparison to slavery

Pinkerton escorts hocking valley leslies

Wage labor has long been compared to slavery. As a result, the phrase "

wage slavery Wage slavery is a term used to criticize exploitation of labour by business, by keeping wages low or stagnant in order to maximize profits. The situation of wage slavery can be loosely defined as a person's dependence on wages (or a salary) f ...

" is often utilized as a pejorative for wage labor. Similarly, advocates of slavery looked upon the "comparative evils of Slave Society and of Free Society, of slavery to human Masters and slavery to Capital" and proceeded to argue that wage slavery was actually worse than

chattel slavery Slavery is the ownership of a person as property, especially in regards to their labour. Slavery typically involves compulsory work, with the slave's location of work and residence dictated by the party that holds them in bondage. Enslavemen ...

. Slavery apologists like

George Fitzhugh George Fitzhugh (November 4, 1806 – July 30, 1881) was an American social theorist who published racial and slavery-based social theories in the antebellum era. He argued that the negro was "but a grown up child" needing the economic and social ...

contended that workers only accepted wage labor with the passage of time as they became "familiarised and inattentive to the infected social atmosphere they continually inhale". Scholars have debated the exact relationship between wage labor, slavery, and capitalism at length, especially for the

Antebellum South The ''Antebellum'' South era (from ) was a period in the history of the Southern United States that extended from the conclusion of the War of 1812 to the start of the American Civil War in 1861. This era was marked by the prevalent practic ...

. With the advent of the

Industrial Revolution The Industrial Revolution, sometimes divided into the First Industrial Revolution and Second Industrial Revolution, was a transitional period of the global economy toward more widespread, efficient and stable manufacturing processes, succee ...

, thinkers such as

Pierre-Joseph Proudhon Pierre-Joseph Proudhon (, ; ; 1809 – 19 January 1865) was a French anarchist, socialist, philosopher, and economist who founded mutualist philosophy and is considered by many to be the "father of anarchism". He was the first person to ca ...

and

Karl Marx Karl Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, political theorist, economist, journalist, and revolutionary socialist. He is best-known for the 1848 pamphlet '' The Communist Manifesto'' (written with Friedrich Engels) ...

elaborated the comparison between wage labor and slavery in the context of a critique of societal property not intended for active personal use while

Luddite The Luddites were members of a 19th-century movement of English textile workers who opposed the use of certain types of automated machinery due to concerns relating to worker pay and output quality. They often destroyed the machines in organ ...

s emphasized the

dehumanisation upright=1.2, link=Warsaw Ghetto boy, In his report on the suppression of the Nazi camps as "bandits". file:Abu Ghraib 68.jpg, Lynndie England pulling a leash attached to the neck of a prisoner in Abu Ghraib torture and prisoner abuse, Abu Ghr ...

brought about by machines. Before the

American Civil War The American Civil War (April 12, 1861May 26, 1865; also known by Names of the American Civil War, other names) was a civil war in the United States between the Union (American Civil War), Union ("the North") and the Confederate States of A ...

, Southern defenders of

African American African Americans, also known as Black Americans and formerly also called Afro-Americans, are an Race and ethnicity in the United States, American racial and ethnic group that consists of Americans who have total or partial ancestry from an ...

slavery invoked the concept of wage slavery to favorably compare the condition of their slaves to workers in the North. The United States abolished slavery during the Civil War, but labor union activists found the metaphor useful. According to Lawrence Glickman, in the

Gilded Age In History of the United States, United States history, the Gilded Age is the period from about the late 1870s to the late 1890s, which occurred between the Reconstruction era and the Progressive Era. It was named by 1920s historians after Mar ...

"references abounded in the labor press, and it is hard to find a speech by a labour leader without the phrase". According to

Noam Chomsky Avram Noam Chomsky (born December 7, 1928) is an American professor and public intellectual known for his work in linguistics, political activism, and social criticism. Sometimes called "the father of modern linguistics", Chomsky is also a ...

, analysis of the psychological implications of wage slavery goes back to the

Enlightenment Enlightenment or enlighten may refer to: Age of Enlightenment * Age of Enlightenment, period in Western intellectual history from the late 17th to late 18th century, centered in France but also encompassing (alphabetically by country or culture): ...

era. In his 1791 book ''On the Limits of State Action'', liberal thinker

Wilhelm von Humboldt Friedrich Wilhelm Christian Karl Ferdinand von Humboldt (22 June 1767 – 8 April 1835) was a German philosopher, linguist, government functionary, diplomat, and founder of the Humboldt University of Berlin. In 1949, the university was named aft ...

explained how "whatever does not spring from a man's free choice, or is only the result of instruction and guidance, does not enter into his very nature; he does not perform it with truly human energies, but merely with mechanical exactness" and so when the laborer works under external control, "we may admire what he does, but we despise what he is". Both the

Milgram Milgram is a surname derived from the Yiddish word for pomegranate (מילגרוים, Milgroim) and may refer to: * Arthur Milgram (1912–1961), American mathematician ** R. James Milgram (born 1939), American mathematician, son of Arthur * St ...

and Stanford experiments have been found useful in the psychological study of wage-based workplace relations. Additionally, as per anthropologist

David Graeber David Rolfe Graeber (; February 12, 1961 – September 2, 2020) was an American and British anthropologist, Left-wing politics, left-wing and anarchism, anarchist social and political activist. His influential work in Social anthropology, social ...

, the earliest wage labor contracts known about were in fact contracts for the rental of chattel slaves (usually the owner would receive a share of the money and the slave another, with which to maintain his or her living expenses). According to Graeber, such arrangements were quite common in New World slavery as well, whether in the United States or Brazil. C. L. R. James argued in ''

The Black Jacobins ''The Black Jacobins: Toussaint L'Ouverture and the San Domingo Revolution'' is a 1938 book by Trinidadian historian C. L. R. James, and is a history of the Haitian Revolution of 1791–1804. He went to Paris to research this work, where he me ...

'' that most of the techniques of human organisation employed on factory workers during the Industrial Revolution were first developed on slave plantations. Some

anti-capitalist Anti-capitalism is a political ideology and Political movement, movement encompassing a variety of attitudes and ideas that oppose capitalism. Anti-capitalists seek to combat the worst effects of capitalism and to eventually replace capitalism ...

thinkers claim that the

elite In political and sociological theory, the elite (, from , to select or to sort out) are a small group of powerful or wealthy people who hold a disproportionate amount of wealth, privilege, political power, or skill in a group. Defined by the ...

maintain wage

slavery Slavery is the ownership of a person as property, especially in regards to their labour. Slavery typically involves compulsory work, with the slave's location of work and residence dictated by the party that holds them in bondage. Enslavemen ...

and a divided working class through their influence over the media and entertainment industry, educational institutions, unjust laws, nationalist and

corporate propaganda Corporate propaganda refers to corporations or government entities that spread specific ideology in order to shape public opinion or perceptions and promote its own interests. The more well known term, propaganda, refers to the spreading of inf ...

, pressures and incentives to internalize values serviceable to the power structure,

state State most commonly refers to: * State (polity), a centralized political organization that regulates law and society within a territory **Sovereign state, a sovereign polity in international law, commonly referred to as a country **Nation state, a ...

violence, fear of

unemployment Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is the proportion of people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work du ...

and a historical legacy of exploitation and profit accumulation/transfer under prior systems, which shaped the development of economic theory.

Adam Smith Adam Smith (baptised 1723 – 17 July 1790) was a Scottish economist and philosopher who was a pioneer in the field of political economy and key figure during the Scottish Enlightenment. Seen by some as the "father of economics"——— or ...

noted that employers often conspire together to keep wages low: To

Marxist Marxism is a political philosophy and method of socioeconomic analysis. It uses a dialectical and materialist interpretation of historical development, better known as historical materialism, to analyse class relations, social conflic ...

and

anarchist Anarchism is a political philosophy and Political movement, movement that seeks to abolish all institutions that perpetuate authority, coercion, or Social hierarchy, hierarchy, primarily targeting the state (polity), state and capitalism. A ...

thinkers like

Mikhail Bakunin Mikhail Alexandrovich Bakunin. Sometimes anglicized to Michael Bakunin. ( ; – 1 July 1876) was a Russian revolutionary anarchist. He is among the most influential figures of anarchism and a major figure in the revolutionary socialist, s ...

and

Peter Kropotkin Pyotr Alexeyevich Kropotkin (9 December 1842 – 8 February 1921) was a Russian anarchist and geographer known as a proponent of anarchist communism. Born into an aristocratic land-owning family, Kropotkin attended the Page Corps and later s ...

, wage slavery was a class condition in place due to the existence of

private property Private property is a legal designation for the ownership of property by non-governmental Capacity (law), legal entities. Private property is distinguishable from public property, which is owned by a state entity, and from Collective ownership ...

and the

state State most commonly refers to: * State (polity), a centralized political organization that regulates law and society within a territory **Sovereign state, a sovereign polity in international law, commonly referred to as a country **Nation state, a ...

. This class situation rested primarily on: # The existence of property not intended for active use. # The concentration of ownership in few hands. # The lack of direct access by workers to the

means of production In political philosophy, the means of production refers to the generally necessary assets and resources that enable a society to engage in production. While the exact resources encompassed in the term may vary, it is widely agreed to include the ...

and consumption goods. # The perpetuation of a reserve army of unemployed workers. For Marxists, labor as commodity, which is how they regard wage labor, provides a fundamental point of attack against capitalism. "It can be persuasively argued", noted one concerned philosopher, "that the conception of the worker's labour as a commodity confirms Marx's stigmatization of the wage system of private capitalism as 'wage-slavery;' that is, as an instrument of the capitalist's for reducing the worker's condition to that of a slave, if not below it". That this objection is fundamental follows immediately from Marx's conclusion that wage labor is the very foundation of capitalism: "Without a class dependent on wages, the moment individuals confront each other as free persons, there can be no production of surplus value; without the production of surplus-value there can be no capitalist production, and hence no capital and no capitalist!".

Supply and demand

At least two assumptions are necessary for the validity of the standard model: first, that

supply and demand In microeconomics, supply and demand is an economic model of price determination in a Market (economics), market. It postulates that, Ceteris_paribus#Applications, holding all else equal, the unit price for a particular Good (economics), good ...

are independent; and second, that supply is "constrained by a fixed resource". If these conditions do not hold, then the Marshallian model cannot be sustained. Sraffa's critique focused on the inconsistency (except in implausible circumstances) of partial equilibrium analysis and the rationale for the upward slope of the supply curve in a market for a produced consumption good. The notability of Sraffa's critique is also demonstrated by Paul A. Samuelson's comments and engagements with it over many years, stating:

What a cleaned-up version of Sraffa (1926) establishes is how nearly empty are all of Marshall's
partial equilibrium In economics, partial equilibrium is a condition of economic equilibrium which analyzes only a single market, ''ceteris paribus'' (everything else remaining constant) except for the one change at a time being analyzed. In general equilibrium anal ...
boxes. To a logical purist of Wittgenstein and Sraffa class, the Marshallian partial equilibrium box of constant cost is even more empty than the box of increasing cost.

Aggregate excess demand in a market is the difference between the quantity demanded and the quantity supplied as a function of price. In the model with an upward-sloping supply curve and downward-sloping demand curve, the aggregate excess demand function only intersects the axis at one point, namely at the point where the supply and demand curves intersect. The

Sonnenschein–Mantel–Debreu theorem The Sonnenschein–Mantel–Debreu theorem is an important result in general equilibrium economics, proved by Gérard Debreu, , and Hugo F. Sonnenschein in the 1970s. It states that the excess demand curve for an exchange economy populated with ...

shows that the standard model cannot be rigorously derived in general from

general equilibrium theory In economics, general equilibrium theory attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an ov ...

. The model of prices being determined by supply and demand assumes

perfect competition In economics, specifically general equilibrium theory, a perfect market, also known as an atomistic market, is defined by several idealizing conditions, collectively called perfect competition, or atomistic competition. In Economic model, theoret ...

. However, "economists have no adequate model of how individuals and firms adjust prices in a competitive model. If all participants are price-takers by definition, then the actor who adjusts prices to eliminate excess demand is not specified". Goodwin, Nelson, Ackerman and Weisskopf write:

If we mistakenly confuse precision with accuracy, then we might be misled into thinking that an explanation expressed in precise mathematical or graphical terms is somehow more rigorous or useful than one that takes into account particulars of history, institutions or business strategy. This is not the case. Therefore, it is important not to put too much confidence in the apparent precision of supply and demand graphs. Supply and demand analysis is a useful precisely formulated conceptual tool that clever people have devised to help us gain an abstract understanding of a complex world. It does not—nor should it be expected to—give us in addition an accurate and complete description of any particular real world market.

Surveillance

According to Harvard academic

Shoshana Zuboff Shoshana Zuboff (born November 18, 1951) is an American author, professor, social psychologist, philosopher, and scholar. Zuboff is the author of the books ''In the Age of the Smart Machine: The Future of Work and Power'' and ''The Support Econ ...

, a new genus of capitalism,

surveillance capitalism Surveillance capitalism is a concept in political economics which denotes the widespread collection and commodification of personal data by corporations. This phenomenon is distinct from government surveillance, although the two can be mutuall ...

monetizes data acquired through

surveillance Surveillance is the monitoring of behavior, many activities, or information for the purpose of information gathering, influencing, managing, or directing. This can include observation from a distance by means of electronic equipment, such as ...

. She states that it was first discovered and consolidated at

Google Google LLC (, ) is an American multinational corporation and technology company focusing on online advertising, search engine technology, cloud computing, computer software, quantum computing, e-commerce, consumer electronics, and artificial ...

, emerged due to the "coupling of the vast powers of the

digital Digital usually refers to something using discrete digits, often binary digits. Businesses *Digital bank, a form of financial institution *Digital Equipment Corporation (DEC) or Digital, a computer company *Digital Research (DR or DRI), a software ...

with the radical indifference and intrinsic narcissism of the

financial capitalism Finance capitalism or financial capitalism is the subordination of processes of production to the accumulation of money profits in a financial system. Financial capitalism is thus a form of capitalism where the intermediation of saving to inves ...

and its

neoliberal Neoliberalism is a political and economic ideology that advocates for free-market capitalism, which became dominant in policy-making from the late 20th century onward. The term has multiple, competing definitions, and is most often used pej ...

vision that have dominated commerce for at least three decades, especially in the Anglo economies" and depends on the global architecture of computer mediation which produces a distributed and largely uncontested new expression of power she calls "Big Other". New information technologies continuously create conflict between privacy, the control over personal information disclosure, and surveillance. In a current capitalistic society, power is harnessed through a combination of both control and freedom. This fusion of control and freedom, seen through changes in sexuality and race, is a response to the growing privatization of data, networks, public services, and physical spaces, and also to the simultaneous entry of publicity and paranoia into people's lives.

Racism

According to

Immanuel Wallerstein Immanuel Maurice Wallerstein (; September 28, 1930 – August 31, 2019) was an American sociologist and economic historian. He is perhaps best known for his development in sociology of world-systems approach."Wallerstein, Immanuel (1930– )." ...

,

institutional racism Institutional racism, also known as systemic racism, is a form of institutional discrimination based on Race (human categorization), race or ethnic group and can include policies and practices that exist throughout a whole society or organizati ...

has been "one of the most significant pillars" of the capitalist system and serves as "the ideological justification for the hierarchization of the work-force and its highly unequal distributions of reward". Critics of capitalism argue that racism benefits capitalists in several ways. Racism divides the working class and prevents them from uniting to demand better wages and working conditions. Capitalists benefit from competition and hostility between workers because it reduces their bargaining power and ability to organise. Racism was used to justify the exploitation and oppression of certain groups of people for economic gain, such as in the era of

slavery in the United States The legal institution of human chattel slavery, comprising the enslavement primarily of List of ethnic groups of Africa, Africans and African Americans, was prevalent in the United States of America from its founding in 1776 until 1865 ...

. Capitalists benefitted from the scapegoating of

Jewish people Jews (, , ), or the Jewish people, are an ethnoreligious group and nation, originating from the Israelites of ancient Israel and Judah. They also traditionally adhere to Judaism. Jewish ethnicity, religion, and community are highly inte ...

as a way to divert attention from the real cause of the problems. An example of this is

Henry Ford Henry Ford (July 30, 1863 – April 7, 1947) was an American Technological and industrial history of the United States, industrialist and business magnate. As the founder of the Ford Motor Company, he is credited as a pioneer in making automob ...

, founder of the

Ford Motor Company Ford Motor Company (commonly known as Ford) is an American multinational corporation, multinational automobile manufacturer headquartered in Dearborn, Michigan, United States. It was founded by Henry Ford and incorporated on June 16, 1903. T ...

, who spread Anti-Semitic propaganda in his newspaper '' The Dearborn Independent''.

Vladimir Lenin Vladimir Ilyich Ulyanov ( 187021 January 1924), better known as Vladimir Lenin, was a Russian revolutionary, politician and political theorist. He was the first head of government of Soviet Russia from 1917 until Death and state funeral of ...

argued that

Antisemitism Antisemitism or Jew-hatred is hostility to, prejudice towards, or discrimination against Jews. A person who harbours it is called an antisemite. Whether antisemitism is considered a form of racism depends on the school of thought. Antisemi ...

was being used in Tsarist Russia to distract the workers from the true problems which are inherent to capitalism by blaming the Jews. Others argue that while capitalism generally used or transformed pre-existing racism depending on local circumstances, racism is not necessary for capitalism. Many theorists supportive of capitalism believed that a free market is a remedy for racism in a functioning society, because if some business owners engaged in discriminatory wage practices targeting minority ethnic groups, other entrepreneurs would take advantage of the opportunity to hire an equally-capable worker for a lower cost, increasing the profitability of the latter. According to Jim Sidanius and Felicia Pratto, despite the fluidity of this theory, reconciling the free market theory with the observed data presents challenges, as those who are in support of free market capitalism also often exhibit a higher likelihood of discriminating against ethnic minorities. Left-wing commentators have argued that capitalism promotes racism alongside

culture wars A culture war is a form of cultural conflict (metaphorical "war") between different social groups who struggle to politically impose their own ideology (moral beliefs, humane virtues, and religious practices) upon mainstream society, or upon t ...

over issues such as

immigration Immigration is the international movement of people to a destination country of which they are not usual residents or where they do not possess nationality in order to settle as Permanent residency, permanent residents. Commuting, Commuter ...

and representation of

ethnic minorities The term "minority group" has different meanings, depending on the context. According to common usage, it can be defined simply as a group in society with the least number of individuals, or less than half of a population. Usually a minority g ...

whilst refusing to address economic inequalities.

Underdevelopment

Marxist and Neo-Marxist theorists including Wallerstein, Andre Frank and

Samir Amin Samir Amin () (3 September 1931 – 12 August 2018) was an Egyptian-French Marxian economics, Marxian economist, political scientist and World-systems theory, world-systems analyst. He is noted for his introduction of the term Eurocentrism in 19 ...

have linked

underdevelopment Underdevelopment, in the context of international development, reflects a broad condition or phenomena defined and critiqued by theorists in fields such as economics, development studies, and postcolonial studies. Used primarily to distinguish s ...

with capitalism, emphasising the relationship between the metropolist centre and the periphery colony, theory of 'unequal exchange' and constituents of a single world capitalist system.

Dependency theory Dependency theory is the idea that resources flow from a " periphery" of poor and exploited states to a " core" of wealthy states, enriching the latter at the expense of the former. A central contention of dependency theory is that poor states ...

posits that peripheral economies are subordinated to the interests of the capitalist world economy which was initially established by European colonialism. Using the Latin American dependency model, the Guyanese Marxist historian

Walter Rodney Walter Anthony Rodney (23 March 1942 – 13 June 1980) was a Guyanese historian, political activist and academic. His notable works include '' How Europe Underdeveloped Africa'', first published in 1972. He was assassinated in Georgetown, ...

, in his book '' How Europe Underdeveloped Africa'', described in 1972 an Africa that had been consciously exploited by European imperialists, leading directly to the modern underdevelopment of most of the continent. The concept of uneven development derived from the political theories of

Leon Trotsky Lev Davidovich Bronstein ( – 21 August 1940), better known as Leon Trotsky,; ; also transliterated ''Lyev'', ''Trotski'', ''Trockij'' and ''Trotzky'' was a Russian revolutionary, Soviet politician, and political theorist. He was a key figure ...

. This concept was developed in combination with the related theory of permanent revolution to explain the historical context of Russia. He would later elaborate on this theory to explain the specific, capitalist laws of uneven development in 1930. According to biographer Ian Thatcher, this theory would be later generalised to "the entire history of mankind".

Counter-criticism

Austrian School

Austrian School The Austrian school is a Heterodox economics, heterodox Schools of economic thought, school of economic thought that advocates strict adherence to methodological individualism, the concept that social phenomena result primarily from the motivat ...

economists have argued that capitalism can organize itself into a complex system without an external guidance or central planning mechanism.

Friedrich Hayek Friedrich August von Hayek (8 May 1899 – 23 March 1992) was an Austrian-born British academic and philosopher. He is known for his contributions to political economy, political philosophy and intellectual history. Hayek shared the 1974 Nobe ...

considered the phenomenon of

self-organisation Self-organization, also called spontaneous order in the social sciences, is a process where some form of overall order and disorder, order arises from local interactions between parts of an initially disordered system. The process can be spont ...

as underpinning capitalism. Prices serve as a signal as to the urgent and unfulfilled wants of people and the opportunity to earn profits if successful, or absorb losses if resources are used poorly or left idle, gives entrepreneurs

incentive In general, incentives are anything that persuade a person or organization to alter their behavior to produce the desired outcome. The laws of economists and of behavior state that higher incentives amount to greater levels of effort and therefo ...

to use their

knowledge Knowledge is an Declarative knowledge, awareness of facts, a Knowledge by acquaintance, familiarity with individuals and situations, or a Procedural knowledge, practical skill. Knowledge of facts, also called propositional knowledge, is oft ...

and resources to satisfy those wants. Thus, the activities of millions of people, each seeking their own interest, are coordinated.

Ayn Rand

The novelist

Ayn Rand Alice O'Connor (born Alisa Zinovyevna Rosenbaum; , 1905March 6, 1982), better known by her pen name Ayn Rand (), was a Russian-born American writer and philosopher. She is known for her fiction and for developing a philosophical system which s ...

made positive moral defenses of ''laissez-faire'' capitalism, most notably in her 1957 novel ''

Atlas Shrugged ''Atlas Shrugged'' is a 1957 novel by Ayn Rand. It is her longest novel, the fourth and final one published during her lifetime, and the one she considered her ''magnum opus'' in the realm of fiction writing. She described the theme of ''Atlas ...

'' and in her 1966 collection of essays '' Capitalism: The Unknown Ideal''. She argued that capitalism should be supported on moral grounds, not just on the basis of practical benefits. Her ideas have had significant influence over conservative and libertarian supporters of capitalism, especially within the American

Tea Party movement The Tea Party movement was an American fiscally conservative political movement within the Republican Party that began in 2007, catapulted into the mainstream by Congressman Ron Paul's presidential campaign. The movement expanded in resp ...

. Rand defined capitalism as "a social system based on the recognition of individual rights, including property rights, in which all property is privately owned". According to Rand, the role of government in a capitalist state has three broad categories of proper functions: first, the police "to protect men from criminals"; second, the armed services "to protect men from foreign invaders"; and third, the law courts "to settle disputes among men according to objective laws".Ayn Rand, "Nature of Government", Virtue of selfishness.

References

Works cited

* * * * * * * * * * * * * * *

External links

A Reconsideration of the Theory of Entrepreneurship: a participatory approach
– critique of capitalism (archived 18 February 2006)

– 1907 anti-capitalist pamphlet by John Wheatley

by Allin F. Cottrell and W. Paul Cockshott
Value, Price and Profit
– Karl Marx on the basic features of capitalism
Crisis of Capitalism
by

David Harvey David William Harvey (born 31 October 1935) is a British-American academic best known for Marxist analyses that focus on urban geography as well as the economy more broadly. He is a Distinguished Professor of anthropology and geography at t ...

. ''

Royal Society of Arts The Royal Society for the Encouragement of Arts, Manufactures and Commerce, commonly known as the Royal Society of Arts (RSA), is a learned society that champions innovation and progress across a multitude of sectors by fostering creativity, s ...

''. 28 June 2010.
Richard Wolff on Curing Capitalism
''

Moyers & Company ''Moyers & Company'' was a commentary and interview television show hosted by Bill Moyers, and broadcast via syndication on public television stations in the United States. The weekly show covered current affairs affecting everyday Americans, a ...

''. 22 March 2013.
Occupy was right: capitalism has failed the world
Andrew Hussey. ''

The Guardian ''The Guardian'' is a British daily newspaper. It was founded in Manchester in 1821 as ''The Manchester Guardian'' and changed its name in 1959, followed by a move to London. Along with its sister paper, ''The Guardian Weekly'', ''The Guardi ...

''. 12 April 2014 (interview with

Thomas Piketty Thomas Piketty (; born 7 May 1971) is a French economist who is a professor of economics at the School for Advanced Studies in the Social Sciences, associate chair at the Paris School of Economics (PSE) and Centennial Professor of Economics ...

).
Unless It Changes, Capitalism Will Starve Humanity By 2050
''

Forbes ''Forbes'' () is an American business magazine founded by B. C. Forbes in 1917. It has been owned by the Hong Kong–based investment group Integrated Whale Media Investments since 2014. Its chairman and editor-in-chief is Steve Forbes. The co ...

''. 9 February 2016.
New Zealand's new prime minister calls capitalism a 'blatant failure'
''The Independent''. 22 October 2017.

''

The Washington Post ''The Washington Post'', locally known as ''The'' ''Post'' and, informally, ''WaPo'' or ''WP'', is an American daily newspaper published in Washington, D.C., the national capital. It is the most widely circulated newspaper in the Washington m ...

''. 20 April 2019
Broken Capitalism
series in ''

The Guardian ''The Guardian'' is a British daily newspaper. It was founded in Manchester in 1821 as ''The Manchester Guardian'' and changed its name in 1959, followed by a move to London. Along with its sister paper, ''The Guardian Weekly'', ''The Guardi ...

''.
The Influence of Environmental Toxicity, Inequity and Capitalism on Reproductive Health

Center for Biological Diversity The Center for Biological Diversity is a nonprofit membership organization known for its work protecting endangered species through legal action, scientific petitions, creative media and grassroots activism. It was founded in 1989 by Kieran Suck ...

. 2022. {{DEFAULTSORT:Criticism Of Capitalism Issues in anarchism Marxian economics Social philosophy Socialism

History

Criticism by different schools of thought

Anarchism

Conservatism and traditionalism

Fascism

Liberalism

Marxism

Religion

Socialism

Topics of criticism

Democracy and freedom

Exploitation of workers

Imperialism, political oppression, and genocide

Inefficiency, irrationality, and unpredictability

Market failure

Inequality

Property

Environmental sustainability

Profit motive

Comparison to slavery

Supply and demand

Surveillance

Racism

Underdevelopment

Counter-criticism

Austrian School

Ayn Rand

See also

References

Works cited

Further reading

External links