I am becoming anti-capitalist, but I don't know yet what would better replace it. Here's the process by which my thought is evolving.
1. What seems to me the most reasonable system is a free market, regulated to the extent that this is necessary to ensure competition and level access to all buyers and sellers. A democratic government would provide public goods like infrastructure, civil defence, and public order.
2. The problem is that any public solution that is put in place by honest people becomes a system that is, within a couple of generations, entirely corrupted. Industry convinces politicians to put its yes-men on regulatory boards, so that over time the wolves are watching the hen-house. This leaves us with the illusion of a regulatory system that claims it watches out for the public interest while increasing the opportunity for exploitation. See, for example, how the FDA and big pharma collude to mass-market poisons to the public as "medicine." Merck has, with one substance, killed over 38,000 people and hid the evidence for years while continuing to profit madly from Vioxx. There has been no public outcry whatsoever, because people trust the FDA to protect them. But also, I think there's a sense of fatalism; a sense that if we can't trust the FDA, what can we do instead that won't be similarly corrupted by cronyism?
2a. The only hope for counter-cronyism seems to be the fact that for many industries, there is a complementary industry whose profit depends on keeping the others honest. For example, the insurance industry stepped in and started doing its own auto crash testing when it became clear that the government wasn't setting safety standards high enough. The problem, though, is that while this does help keep the auto industry somewhat more honest, it doesn't always benefit the consumers, because the insurance industry makes its money by doing what it can to avoid making payouts, and there is no real market balance to help, because in an important sense there is no competition: once an accident has occurred, you can't shop around to find the insurance company that will pay you the most. Sure, if your insurance company doesn't pay out when you have an accident you can switch insurance companies, but that does you're current situation no good. Officially there is recourse to the attorney general, but if this is an elected official, chances are his biggest campaign contributions came from insurance companies -- see point 2, "cronyism," above.
3. The profit motive itself seems a unversal corruptor. Far from encouraging "rational market behavior," it inspires people to look for ways to flout the rules in order to increase those profits. The more competitors there are in the marketplace, the more scarcity there is, and the more greed is favored. Game theory demonstrates that people will cheat when they can expect to get away with it. There is no economic arena where in general this has been false. So long as people are able to convince themselves that real people "out there" are not affected adversely by their market decisions, they need feel no remorse at the likelihood that their gain comes at someone else's loss. In theory, the open-information, profit-driven free market helps everyone; in practice, there is no way around the effect of greed.
4. Greed and cronyism find considerable opportunity in the vulnerabilities of those who come to the market at a social disadvantage. Members of all disparaged groups -- whether they are categorized by gender, race, religion, class, size, disability, neurodiversity, sexual orientation, or gender identity, find themselves coming up short in the labor market. To begin with they do not have equal access, which creates opportunity for exploitation for those not thusly disadvantaged. It is not an accident that in the U.S. the captains of industry, the heads of the bureaucracies, and the elected officials are disproportionately white, male, Protestant, upper-class, slender, "sane," straight, and cis-gendered. Exceptions are rare enough that they are newsworthy. Even to the extent that there is a meritocratic system, access to education and valuation of one's merit is biased in favor of those who have social advantages -- those who can "dress for success" and speak "WASPishly" enough. What with people taking any advantage they can find, and the privileged operating the level-making frameworks (such as judges or arbiters who preside over discrimination or labor-fairness lawsuits) with cronies, the slant is so strongly in favor of those with privilege that even initiatives like affirmative action and collective bargaining have done little, across society, to counter it.
4a. This combination of factors has already given us patterns like "the war on (some) drugs," in which common behavior has been criminalized in the name of "public protection." There is quite a bit of violent crime involved with the drug trade, but not driven so much by the use of it, as by the self-interested behavior that occurs in a completely unregulated system. Competing vendors feel entitled to whatever means will ensure them greater market access; and addicts, scrambling for survival in a politcal and economic system that ostrasizes them, become increasingly desperate (whether they are junkies who live in squats or tweakers who live in Manhattan penthouses). This pattern has seen the growth of a "prison-industrial complex" that actually has incentive to incarcerate people, especially for drug offenses where current federal rules allow police to confiscate and sell all kinds of personal possessions, and companies who now can have products made cheaply by effective slaves thanks to entities like
UNICOR. (At least such products are "Made in America" -- which by the way has the most highly incarcerated population
in the world.)
5. Advertisement has become a system whereby the consumer's brain is colonized with a consumerist mentality that puts "blinders" on us, and causes us to treat our consumer obligations as if they were integral aspects of our survival. How else would people go along with the drudgery of factory or menial office work, if they were not convinced that they needed "money" in order to survive (and by survive, I mean buy clothing in the latest fashions, the cool new CDs and DVDs and the cool new gadgets to play them on, etc.)? People facing the inability to pay their debts panic as if they were facing a predator -- people talk about their credit rating in anxious tones as if a dip would create a life-threatening emergency. Cigarette companies don't just sell cancer-sticks, they sell "masculinity in a box," wearing a poncho and riding a horse across the plains. The diet industry doesn't just sell starchy low-fat food, it sells a promise of salvation.
Since these seem to be problems that are rooted in human nature, I don't think that lasting solutions can be developed in the framework of a capitalist republic. I'm not sure, though, what to advocate as a solution. Should we fight the present battles within the current system against greed, cronyism, and class exploitation, knowing that our solutions will eventually become our children's problems? Would stronger ethical instruction during childhood produce a generation that is more compassionate and generous?
Or is the solution a truly radical overhaul that tears down not just institutional edifice, but what I've come to call "the tyranny of the written word," the use of contract and law as tools of dehumanization and exploitation? I don't want to throw the baby out with the bathwater, though; between honest people, a contract can be an instrument of mutual benefit.
Is the current system the best we can do? Without it, how could we see to things like environmental protection, defense of equal opportunity, and caretaking of the ill and disabled, which are best handled as public issues?