Author: Mohammad Asem Esmailzahi
Capitalism (part 11)
Critics of Capitalism (Continued)
The principal critics of capitalism include socialists—such as Karl Marx, Friedrich Engels, Vladimir Lenin, Mao Zedong, and Fidel Castro—as well as anarchists such as Benjamin Tucker and Noam Chomsky. Some religions also oppose certain aspects of capitalism; for example, Judaism, Christianity, and Islam prohibit usury (interest).
Among the criticisms directed at capitalism are the following:
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Inefficient and unjust distribution of wealth and power;
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A tendency toward market monopolization;
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The absence of genuine competitive markets and true market freedom;
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Imperialism and various forms of cultural and economic exploitation;
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Phenomena such as cultural alienation, inequality, unemployment, and economic instability;
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Growing economic inequality (the rich becoming richer and the poor poorer);
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Exploitation of labor (low wages and harsh working conditions);
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Recurring economic crises;
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Environmental damage (overconsumption of natural resources). [1]
Critics argue that the combination of free trade and private ownership of capital inherently leads to monopolistic structures. Political economy examines the extent to which capitalism is responsible for economic exploitation, imperial and colonial wars, as well as the suppression of workers, labor unions, and even genocide. [2]
One of the debated aspects—considered by some as a weakness and by others as a strength of capitalism—is its cyclical crises. Karl Marx regarded these crises as a fundamental flaw and developed his theory of crisis, arguing that such contradictions would ultimately lead to the collapse of capitalism. In his view, genuine collective freedom does not exist under capitalism; the working class remains confined to a limited position, while the system of wealth organization continuously enriches the wealthy. Others, however, believe that periods of crisis actually reinforce and restructure the foundations of capitalism.
According to Marx, with each crisis the pillars of capitalism are shaken. During a severe economic crisis, through strikes and intensified labor struggle, ownership of the means of production would be transferred from the few remaining capital owners—consolidated through the law of capital concentration—to the collective community. [3]
Max Weber, in his historical study on the relationship between Protestantism and the development of capitalism, emphasized the impact of the Protestant Reformation (1517–1565) and particularly his work The Protestant Ethic and the Spirit of Capitalism on the process of industrialization in capitalist societies grounded in Protestant Christian thought. Weber argued that in modern Western society, individual behavior is governed by “instrumental rationality.” He therefore predicted that industrial capitalism in the West would remain stable and enduring. [4]
Islam also speaks of the negative consequences of capitalism and critiques it in light of its methods, ethics, and dysfunctional practices. If wealth and capital are not directed toward a just and humane purpose, if they do not serve the broader human community, and if they cease to function merely as instruments but instead become ultimate ends accumulated by a specific group, then they are rejected. In other words, the negative dimension of capitalism is unacceptable because it involves unjust practices and inhumane mechanisms. The free-market economy—forming a cornerstone of the liberal-capitalist interpretation of Western civil society—is viewed as being rooted precisely in such mechanisms. [5]
Conventional capitalism, in its negative dimension, is described as one of the most destructive and ominous phenomena to have appeared in human societies. From its inception to the present, few phenomena are considered as devastating; either it has directly contributed to human destruction or has served as a close ally to historical aggressors and tyrants.
If, in ancient times, tribal or familial powers dominated, or later autocratic political and military powers committed oppression, and if in modern times industrial and military powers have become central sources of injustice and violations of human rights, the fundamental root of all these is seen as lying in unchecked financial power and capital accumulation.
In a broad and concise characterization, capitalism is portrayed as the primary source of selfishness and profiteering, as well as the origin of disorder, destruction, discrimination, deprivation, conflict, and unrest. The concentration of capital and the hoarding of wealth by a select group have consistently produced destructive consequences, corrupting individuals, societies, and even nature and the environment. [6]
“Capitalist economy” and civil society, in this secular interpretation, are described as anti-divine systems and tyrannical economic frameworks—unrestrained, boundaryless, justice-averse, and dismissive of any law except their own. They respect neither alternative systems nor genuine justice, while claiming reformism, legality, and advocacy of human rights and freedom. In this regard, the Qur’an states: “وَإِذَا قِيلَ لَهُمْ لا تُفْسِدُوا فِي الْأَرْضِ قَالُوا إِنَّمَا نَحْنُ مُصْلِحُونَ” Translation “And when it is said to them, ‘Do not cause corruption on the earth,’ they say, ‘We are only reformers.’ [8]
Continues…
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References:
[1] Qahf, Mundhir. Religion and Economics: The Economic System of Islam and the Science of Islamic Economic Analysis, p. 563. Translated by Seyyed Hossein Mir-Moazzei, Summer 2005, Qom, Iran.
[2] Sen, Amartya. On Ethics and Economics, p. 274. Translated by Hassan Fesharaki, Tehran: Shirazeh Publications, 1st ed., 1998.
[3] Weber, Max. The Protestant Ethic and the Spirit of Capitalism, trans. Abdolmaaboud Ansari, p. 192. 1st ed., 1992, Tehran: SAMT Publications.
[4] Ibid.
[5] Zivdari, Mehdi. The Confrontation between Faith-Based Ethics and Capitalist Ethics and the Formation of Economic Systems, p. 734. Center for Technology Studies, Sharif University of Technology, 2007, Iran.
[6] Sen, Amartya. On Ethics and Economics, p. 365. Translated by Hassan Fesharaki, Tehran: Shirazeh Publications, 1st ed., 1998.
[7] Qahf, Mundhir. Religion and Economics: The Economic System of Islam and the Science of Islamic Economic Analysis, p. 431. Translated by Seyyed Hossein Mir-Moazzei, Summer 2005, Qom, Iran.
[8] Qur’an, Surah Al-Baqarah, verses 11–12.
