Capitalism is not destroying us

This week, our scholar in residence, James Bartholomew and I participated in an Ethics Centre debate, arguing against the politically-charged motion: Capitalism is destroying us.

For some of us, ‘no’ would seem the obvious answer. After all, capitalism has presided over unprecedented advancements in health, life expectancy, education and living standards. But it is not enough to be armed with evidence, facts and figures. Debates are often a contest of emotions, rather than a battle of ideas. Hence our focus was on the poor — who have been the biggest winners from capitalism.

Even now, around 80,000 people escape extreme poverty each day — and it is decreasing overwhelmingly in countries which have opened up to free trade and private enterprise. Understandably though, many Australians worry about the human impact on the natural environment. But the trends are clear: as countries develop economically, they become more energy efficient, and less carbon-dependent. Even in the United States, carbon emissions are in decline.

Furthermore, the ability of the world to feed 8 billion people is only possible because of market-driven innovations. The world is producing food more efficiently, with less damage to the environment. But we forget the natural environment has always been a threat to human life — which economic development has helped to combat.

Even now, millions of the global poor die each year from household pollution caused by unsafe fuels for cooking and heating.   And natural disasters — another environmental danger — formerly killed millions each year. But with safer housing, these numbers have plummeted in recent decades.

Of course, capitalism is not about ‘imposing’ a western way of life on other cultures. But the global poor have just as much right as we do to clean water, nutritious food and safe energy. It is too easy for us in Australia to take these basics for granted — as well as our quality of life and relative wealth.

Our poverty rate sits at just 3% and each new generation of Australians is earning more income than the last generation did at their age — including Millennials. By these measures, capitalism is certainly not destroying us. And it is the only proven system for lifting millions of families out of poverty — everywhere from Bangladesh to Botswana.