Wednesday, 20 April 2011

The motive force of capitalism is progress, not profit

I believe the motive force for capitalism is not profit.

Philosophically, the motive force for capitalism is progress (in my opinion) and specifically the creative impulse.

Profit is powerful motivator, no doubt, but it is a secondary one.

The whole strategic and philosophical error in thinking about capitalism has arisen from this point.

Capitalism is a creative process:
  • It is about being productive and innovative.
  • It is about the human genius and the world of ideas.
  • out being productive and innovative.
  • It is about modernisation.
  • It is about social and ethical progress.
  • It is about science and technology too.
  • It is about the creativity of the employee, manager and employer.
  • It is about women and men bringing similarities and differences to the workplace and the marketplace.
  • It is about the global vision and the planet.
  • It is about diversity of the human race.
  • It is about meeting the consumer needs.
  • It is about the individual.
  • It is about progress in cultural expression too.
  • It is about creative arts and entertainment too.
  • It is about communications.
  • It is about modernising religion.
  • It is about caring.
  • It is about welfare systems provided by the public good through collective forms of wealth-sharing (e.g. taxation).
  • It is about infrastructure.

Progress is at the heart of capitalism.

That is why it has succeeded against Marxism - despite the onslaught from its rhetoric and totalitarian materialist thinking focused on narrow money considerations. A partial philosophy has come unstuck against the drivers of history.

A new strategic analysis factoring in progress and the creative impulse is needed to revive capitalism in the West and bring out its best.

It is also a tool for understanding the capitalist take-offs in different countries (so-called emerging economies) including the developing world. The urgent need for progress is felt in these countries and the creative impulse is very powerful. The profit motive plays a secondary powerful motive force too.

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