The Truth About Capitalism And Innovation

Innovation in business, the implementation of novel products and services or changes to existing products and services, is something certain capitalists might cite as a major benefit of capitalism that makes the system morally obligatory.  Without capitalism, some might say, industries like those involved with medicine and other medical needs could become lax with quality because there are no private competitors over which they need an edge in order to win over consumers.  The true relationship between originality and capitalism is more nuanced than capitalist assertions such as this tend to be.

Capitalism can indeed prompt innovation in the form of new products and evolutions of established products.  When someone is driven by the need or hope for financial gain, they could develop creative ideas they might have otherwise never come to, and some of these ideas can directly benefit consumers.  However, the kind of capitalist that points to this as if it means that only capitalism produces the kind of technological and social developments brought about by originality in the business world is woefully wrong.  There is more to individual people than a concern for monetary returns.

While capitalism itself is not philosophically criticized or even directly addressed by simply pointing out the genuine stupidity of some capitalists, there are capitalists who act like the possibility of material wealth is the only thing powerful enough to serve as a consistent catalyst for corporate innovation.  Reason and introspective experience can reveal multiple other possibilities that have nothing to do with seeking profits on their own.  Money might be a significant factor that shapes businesses, but it does not have to be the only factor by any means.

Personal curiosity, intellectual thoroughness, and the desire to resolve the problems faced by others can all motivate innovation in the business world without the presence of any regulations or mandates that pressure people to obtain some advantage over competitors--and without the threat of monetary losses for failing to innovate.  Almost everyone directly or indirectly needs money, but there are things that can shape even the corporate world itself other than the pursuit of wealth and fame.  Both humans and business cannot be reduced down to nothing but financial success.

Capitalism is not necessary to ensure quality medical services, electronics, or other services or products.  Certainly, there are capitalistic factors that can affect improvements in some cases, but capitalistic ideas are not logical prerequisites to this.  This is not to say that socialistic frameworks inevitably lead to innovation and quality either--neither economic system guarantees the safety or satisfaction of consumers!  One of the most damaging errors in how many approach economics is the tendency for the masses to assume that either capitalism or socialism is the savior of culture when both are so often misrepresented and misunderstood, even by their own proponents.