https://thehill.com/opinion/finance/467224-capitalism-on-trial-profit-is-a-good-thing-except-to-the-political-left
These are dangerous times for American capitalism.
Sen. Elizabeth Warren’s (D-Mass.) Accountable Capitalism Act would oblige large corporations to obtain a federal charter requiring directors to consider the interests of all stakeholders — not only shareholders and customers, but also groups representing society as a whole, such as their employees, local communities and civil society, including non-representative, anti-business NGOs.
The chief justice of the supreme court of Delaware – where more than two-thirds of Fortune 500 corporations have their legal home – has written a book arguing that corporations should be run for the benefit of their workers. The Financial Times has launched a “new agenda” campaign that intones: “Capitalism. Time for a reset. Business must make a profit but should serve a purpose too.”
None of this would have come as a surprise to Joseph Schumpeter, one of the 20th century’s great economists. No one understood better the dynamic, propulsive nature of capitalism. But, unlike most economists, Schumpeter also had a deep, subtle appreciation of capitalism’s cultural effects — that, while a system of free enterprise creates successful and prosperous societies, it also plants seeds that can lead to its own demise. “Unlike any other type of society,” Schumpeter wrote “capitalism inevitably and by virtue of the very logic of its civilization creates, educates and subsidizes a vested interest in social unrest.”
And, as Schumpeter saw it, the publicly traded corporation, lacking the visceral allegiance of private property, was capitalism’s weak point: “Defenseless fortresses invite aggression especially if there is rich booty in them.” It’s a prophecy that we’re seeing come to pass.