About the article:
Two years ago, three psychologists and an economist published a long journal article on the dubious psychology that underlies American corporate capitalism. The original title of the piece began with the phrase, "A Taboo Topic," but the authors (myself among them) were warned by a sympathetic editor to be as unprovocative as possible to avoid being instantly written off as leftist ideologues. We deleted the phrase, thus assuring that the taboo against criticizing capitalism remained alive and well.
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The Article:
Similarly, many forms of psychopathology are characterized by a preoccupation with the self and an inability to value the needs and wishes of others. This is evident, for example, in narcissism, sociopathy, and most other personality disorders. Psychological health, in contrast, includes a well-developed sense of empathy and the capacity to put other people's needs above one's own, while still caring for oneself. For most clinical approaches, movement in the direction of greater empathy and compassion, combined with a hefty dose of self-love, is a sign of significant progress.
When we apply this general perspective to capitalism's insistence that people are fundamentally selfish, the economic system comes out looking fatalistic, if not downright cynical. It assigns humanity to a low and easily attained level of moral, social, and emotional development and offers scant hope of collective improvement. Proponents of free enterprise argue that it is futile to attempt to alter our self-serving nature. Rather, the marketplace should organize itself based on the premise that everyone is out for her- or himself.
This brings us to the second key assumption we challenged in our article. The free market has as its primary goal the ongoing accumulation of wealth, which is supposed to provide the best opportunity available for attaining happiness. Yet there now exists a large body of cross-cultural research that shows that after people's survival needs are met—housing, food, clothing, and the like—the relationship between wealth and happiness is negligible. In fact, aspiring to be rich can be harmful. Cross-cultural studies also indicate that the adoption of materialistic values is associated with depression, anxiety, substance abuse, poor social skills, low self-esteem, psychosomatic symptoms (headaches, sore throats, etc.), and diminished life satisfaction. Materialistic values are also related to anti-social behaviors such as cheating and petty theft, racism, and environmental abuse. Materialistic individuals are less empathic and have shorter, more conflictual relationships with friends and lovers than their less materialistic peers. This is not good.
These developmental, clinical, and research-based insights might give us pause as to the psychological wisdom that underlies our nation's economic system. But even if we allow that there may be some validity to capitalism's model of the human psyche as selfish and materialistic, we still have to contend with its cynicism, which is built into the system.
The laws and regulations that form the structure of capitalism mandate selfish and materialistic behavior. For example, by law corporate CEOs have to put profit above all else, including the social good. The corporate culture that emerges from such a structure regards greedy behavior as heroic and compassion as foolish. It aggressively opposes the moral, social, and emotional development necessary to move beyond radical self-interest.
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http://www.tikkun.org/article.php/mar09_kanner