Devastating Filth of Capitalism: The Ever-increasing Gap between Economic Value and Social Value in an Extremely Rich World with Billions to Feed

We tend to judge the value of anything we need in terms of economic value, forgetting the social aspects. It is now reportedly evident that only economic value creation has made a richer world, leaving most of its inhabitants below the poverty line.

By Moshiur RahmanPublished 2 years ago • 7 min read

Capitalism has made a richer world, where economic-value-creation has left the mankind scattered more than ever.

Onward March of Capitalism for Centuries

After the 1790s, the total wealth of the world has gone up at an astounding rate because of the uprising of capitalism which was thought to be the Aladdin's Lamp for the global economy. For many years, the governments of various countries did not want to let the market free to the hand of capitalism. But when they saw that a geometrically increasing rate of individual wealth surprisingly gave rise to collective wealth for the economy, they were compelled to withdraw any type of authority over market forces. The whole world has seen and enjoyed the fruit for almost 180 years. Today global GDP is worth more than $88 trillion. Even the poorest nations are no exception. In spite of having chronic problems like corruption and ill-management, these countries are not lagging behind putting the fate of the market system in the hand of individuals.

Capitalism is at risk and the danger for mankind is evident

However, the onward march of capitalism may not seem enjoyable anymore. Only ten countries hold the lion's share of the above-mentioned $88 trillion. In these countries, over two-thirds of the total wealth is owned by only a few wealthy individuals. Capitalism is the number one cause behind the ever-increasing inequality of wealth between the rich and the poor. It is not something new. It has been debated vehemently for the last few decades.

But at the backdrop, there has been another great problem which has been rising almost silently with a more damaging aspect for the overall humanity. It is the imbalance between social value and economic value. The world has observed and faced the severity of this when it has faced a brand new problem, the Corona Pandemic, which has affected almost every country on the planet and tested the ability to safeguard its own people. Despite economic jargon, the terms economic value and social value are not very difficult to understand. Let's explore that in the stories below.

Social Value Vs Economic Value

Just think, on a good day, you are in a fancy mood and plan to visit a five-star hotel with some of your intimate friends to enjoy the nicest dishes there. After taking meals, you along with your friends enjoyed it a lot. When you got the bill, you did not become surprised to have a receipt of $1500 and you paid it instantly with pleasure. Now think of the meals that your mom or wife prepares every day in your house. They do it for you for years with the utmost care, invaluable love, deep emotions and surely for no price. The economic value of the foods provided in a single meal prepared in a five-star hotel is $1500. On the other hand, the economic value of the meals prepared by your dear ones in a household is almost zero but the social value is the highest. They do it for ages only for the reason they love and seriously care for us, which is not sometimes paid back even in terms of equal love, care and appreciation. We do many things in our lives only because of creating social values such as helping others, donating and performing our responsibilities out of love, respect and care. Any interaction in this material world has two aspects; social value creation and economic value creation. But capitalism has taught us to put only attention to creating economic values. We also tend to judge the value of anything we need in terms of economic value, forgetting the social aspects. It is now reportedly evident that only economic value creation has made a richer world, leaving most of its inhabitants below the poverty line.

A Modern-day Corporation Where Every Single Activity is Measured in Terms of Economic Value

Now think of a modern-day corporation where every single activity is defined and purchased at a suitable price. It is absolutely difficult to find something which people do without any reason and exact price. But in these human-made modern marvels, there is also the existence of social value in almost every interaction but this is also defined and costly. There are also myriad instances when an entity fails to balance economic value and social value. Consequently, many problems arise.

Declining Social Values Because of the Harsh Reality of the Capitalism

In the ancient period, when there was no sense of ownership, people roamed around in a flock and hunt for food. After a long search and struggle, whenever they hunted one animal, they enjoyed it together. There was no dispute and there was a sense of the economic value of something. Over the course of time, the population increased and unlimited demand surpassed the scarce resources, resulting in the conflicts of distribution, ownership and social status. Probably, that was just the beginning of capitalism when people start to become conscious of the economic value of belongings and abilities. There is no dispute that this is the time from when people start to become scattered, focussing on increasing their personal net worth. Capitalism has given the entire humanity a lot. The net asset has soared geometrically after the 1790s, which has already been mentioned. But the relation between capitalism and social value is inversely proportional. The more the intensity of individualism, the least the magnanimity of social value. We are living in a world that is the most divided more than ever and where people are the most scattered. This world is richer than any time in its history, still leaving almost two-thirds of its population below the poverty line. There are certainly no questions about its huge wealth creation but there are no replies for huge poverty and hunger.

Capitalism has made a privileged world for only a few, leaving the majority in hunger

In a capitalist world, there are hundreds of economic units that operate 24/7 to create economic value across the world but there are only a few formal entities that are responsible for creating social value. These institutions are not economically sound and their number is a lot fewer than the current requirement of the world where about 8 billion people reside. There are numerous digital social networking platforms that are supposed to create social value among users around the globe. But the reality is different. Rather than creating real engagements, these platforms are reported to create loneliness among the people and leave the whole world more scattered, resulting in chronic depression, frustration and not human well-being in the true sense.

The Covid-19 Pandemic is an Eye-Opening Experience for the Entire Human Race

It is China's turn to rule the world, being the master of capitalism, not the slave

The Covid-19 pandemic has plagued the whole world, taking the lives of more than 5 million people. There is no denying the fact that it is the biggest humanitarian disaster worldwide in modern history. After its first detection in Wuhan in China in December 1920, the whole world got very little time to understand its severity and respond accordingly. With its quick spread, different nations started to take various actions to curb it. The pandemic has really tested various countries' ability to safeguard their own people. There were many challenges involved for the authorities in different countries such as defining problems, taking exact measures, communicating those to the citizens, and most importantly, compelling a large number of people to change in their lifestyles. These activities bring forefront the attachment between the people and authority. The greatest challenge for the authority is to get the people together to respond quickly to a national emergency. For example, we can talk of China. With a population of almost 1.5 billion, the country has been able to safeguard its population successfully, resulting in a reduced number of infections, deaths and quick economic recovery. The wonderful nation has proved that they are able to make miracles, remaining united during a national emergency. The urgency of capitalism could not hold them back. The importance of saving the lives of the general people of the country overrides all other priorities. The result is very simple. China is the next global superpower that is going to rule the world very soon.

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