In the expert’s opinion, capitalism can—theoretically—give absolutely anyone the ability to flourish. What’s more, he noted that we shouldn’t have the illusion that well-known businesspeople are always making a profit. They undertake big risks and suffer heavy losses as well. It’s not always a marathon of wins for them.
However, Rick warned that major companies and social media have the power to influence elections and change how people think. “Today, the news is largely distributed by some of the largest American corporations: Google, Facebook, and Twitter. Think Brexit or the 2016 American Presidential election,” he said.
According to the financial expert, capitalism can help ordinary people flourish, open up businesses, and sell their products. But when we compare their potential with that of industry giants, we realize that competition in the marketplace isn’t as straightforward as it seems.
“Those [products] with the best quality, price, customer service, or combination (of at least two) often do well. Increasingly, however, those who are willing to spend more at the beginning are seeing both extreme gains and losses. Famously, Amazon and Tesla, for example, have spent hundreds of millions of investors’ dollars before ever making a cent," he said.
Meanwhile, an expert working in the banking industry who asked Bored Panda to remain anonymous because of how sensitive his work is, said that capitalism disproportionately rewards individual incentives and punishes the lack of it.
"As someone acquires more capital, it—on average—becomes exponentially easier to acquire even more of it, which adds to extreme wealth inequality. It really bothers me when trillions in pension funds are wiped out only for a couple of bankers to get slapped on the wrist. Making sure that the costs of financial crises are borne by financial institutions that manufactured them (even if unintentionally), as opposed to transferring the burden to other members of society, would increase accountability,” he said.
According to the expert, capitalism cannot exist as “pure capitalism” and has to focus on “effective social programs” if we care about our fellow citizens.
