THERE is an ongoing debate in this country about the rich: who they are,
what their social role may be, whether they are good or bad. Well,
consider the following. A 2010 study found that 4 percent of a sample of
corporate managers met a clinical threshold for being labeled
psychopaths, compared with 1 percent for the population at large.
(However, the sample was not representative, as the study’s authors have
noted.)
Another study concluded that the rich are more likely to lie, cheat and break the law.
The only thing that puzzles me about these claims is that anyone would
find them surprising. Wall Street is capitalism in its purest form, and
capitalism is predicated on bad behavior. This should hardly be news.
The English writer Bernard Mandeville asserted as much nearly three
centuries ago in a satirical-poem-cum-philosophical-treatise called “The
Fable of the Bees.”
“Private Vices, Publick Benefits” read the book’s subtitle. A
Machiavelli of the economic realm — a man who showed us as we are, not
as we like to think we are — Mandeville argued that commercial society
creates prosperity by harnessing our natural impulses: fraud, luxury and
pride. By “pride” Mandeville meant vanity; by “luxury” he meant the
desire for sensuous indulgence. These create demand, as every ad man
knows. On the supply side, as we’d say, was fraud: “All Trades and
Places knew some Cheat, / No Calling was without Deceit.”
In other words, Enron, BP, Goldman, Philip Morris, G.E., Merck, etc.,
etc. Accounting fraud, tax evasion, toxic dumping, product safety
violations, bid rigging, overbilling, perjury. The Walmart bribery
scandal, the News Corp. hacking scandal — just open up the business
section on an average day. Shafting your workers, hurting your
customers, destroying the land. Leaving the public to pick up the tab.
These aren’t anomalies; this is how the system works: you get away with
what you can and try to weasel out when you get caught.
I always found the notion of a business school amusing. What kinds of
courses do they offer? Robbing Widows and Orphans? Grinding the Faces of
the Poor? Having It Both Ways? Feeding at the Public Trough? There was a
documentary several years ago called “The Corporation” that accepted
the premise that corporations are persons and then asked what kind of
people they are. The answer was, precisely, psychopaths: indifferent to
others, incapable of guilt, exclusively devoted to their own interests.
There are ethical corporations, yes, and ethical businesspeople, but
ethics in capitalism is purely optional, purely extrinsic. To expect
morality in the market is to commit a category error. Capitalist values
are antithetical to Christian ones. (How the loudest Christians in our
public life can also be the most bellicose proponents of an unbridled
free market is a matter for their own consciences.) Capitalist values
are also antithetical to democratic ones. Like Christian ethics, the
principles of republican government require us to consider the interests
of others. Capitalism, which entails the single-minded pursuit of
profit, would have us believe that it’s every man for himself.
There’s been a lot of talk lately about “job creators,” a phrase
begotten by Frank Luntz, the right-wing propaganda guru, on the ghost of
Ayn Rand. The rich deserve our gratitude as well as everything they
have, in other words, and all the rest is envy.
First of all, if entrepreneurs are job creators, workers are wealth
creators. Entrepreneurs use wealth to create jobs for workers. Workers
use labor to create wealth for entrepreneurs — the excess productivity,
over and above wages and other compensation, that goes to corporate
profits. It’s neither party’s goal to benefit the other, but that’s what
happens nonetheless.
Also, entrepreneurs and the rich are different and only partly
overlapping categories. Most of the rich are not entrepreneurs; they are
executives of established corporations, institutional managers of other
kinds, the wealthiest doctors and lawyers, the most successful
entertainers and athletes, people who simply inherited their money or,
yes, people who work on Wall Street.
MOST important, neither entrepreneurs nor the rich have a monopoly on
brains, sweat or risk. There are scientists — and artists and scholars —
who are just as smart as any entrepreneur, only they are interested in
different rewards. A single mother holding down a job and putting
herself through community college works just as hard as any hedge fund
manager. A person who takes out a mortgage — or a student loan, or who
conceives a child — on the strength of a job she knows she could lose at
any moment (thanks, perhaps, to one of those job creators) assumes as
much risk as someone who starts a business.
Enormous matters of policy depend on these perceptions: what we’re going
to tax, and how much; what we’re going to spend, and on whom. But while
“job creators” may be a new term, the adulation it expresses — and the
contempt that it so clearly signals — are not. “Poor Americans are urged
to hate themselves,” Kurt Vonnegut wrote in “Slaughterhouse-Five.” And
so, “they mock themselves and glorify their betters.” Our most
destructive lie, he added, “is that it is very easy for any American to
make money.” The lie goes on. The poor are lazy, stupid and evil. The
rich are brilliant, courageous and good. They shower their beneficence
upon the rest of us.
Mandeville believed the individual pursuit of self-interest could
redound to public benefit, but unlike Adam Smith, he didn’t think it did
so on its own. Smith’s “hand” was “invisible” — the automatic operation
of the market. Mandeville’s involved “the dextrous Management of a
skilful Politician” — in modern terms, legislation, regulation and
taxation. Or as he versified it, “Vice is beneficial found, / When it’s
by Justice lopt, and bound.”
An essayist, critic and the
author of “A Jane Austen Education.”
This article has been revised to reflect the following correction:
Correction: May 20, 2012
An
opinion essay on May 13 about ethics and capitalism misstated the
findings of a 2010 study on psychopathy in corporations. The study found
that 4 percent of a sample of 203 corporate professionals met a
clinical threshold for being described as psychopaths, not that 10
percent of people who work on Wall Street are clinical psychopaths. In
addition, the
study,
in the journal Behavioral Sciences and the Law, was not based on a
representative sample; the authors of the study say that the 4 percent
figure cannot be generalized to the larger population of corporate
managers and executives.
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