Tom and Kate’s Personal Finance Diary Is a Sad Indictment of Capitalism
slate.com
slate.com
It’s a sad indictment of Tom and Kate, not capitalism. They both make decent money — significantly more than their parents. They both have graduate level education.
I get that humans do not make perfect decisions and there are systems controls that are needed to counteract predatory behavior. But this particular story is Tom and Kate’s failure alone. The slate title is the same “we are all victims” bullshit that seems particularly present in the media these days.
This is more or less the topic of Robert Shiller's excellent "Phishing for Phools": https://www.economist.com/books-and-arts/2015/09/17/you-have... These sorts of deceptions are endemic to a capitalist system, need to be curbed somehow or things will go off the rails, as they pretty much have in U.S. economy.
"Our kids are used to sushi."
Their problem isn't being outsmarted by the system. Their problem is feeling entitled to a lifestyle they can't afford.
Instead, modern society has provided Tom and Kate with stable upbringings, solid graduate-level education, good jobs, readily accessible resources, and even a mini bail-out of their own.
I get that this is an outlier case, and am not arguing that this story supports libertarianism. But surely this story is not by itself an argument AGAINST capitalism.
If Tom and Kate can’t be expected to exercise even a modicum of agency and self-control, then most people are just automatons in dire need of a nanny state ruled by a philosopher-king.
The fact is that unrestrained capitalism breeds opportunities for businesses that tend to exploit people's natural foibles. There are ways to prevent this (e.g., intelligent regulation) within the capitalist system. See, e.g., Shiller's book.
https://www.wealthsimple.com/en-us/magazine/money-diary-coup...
It is an interesting read, though honestly, I think it's fiction.
Of course, at its worst, "capitalism" can become exploitative of people's desires, obsessions, and addictions. But with just a little cognitive effort, it's easy enough to see through these tactics. I mean, "Tom" has a graduate degree in advertising, ffs.
After all, there's a reason we have help lines and support groups for gambling addiction, drug addiction, alcohol addiction, etc. Hell, a lot of people cannot exercise the responsibility it takes to eat right and exercise regularly. Should it be a surprise that such a thing like "consumption addiction" might be real? Do we really want an end-stage capitalist system that enables people to be perpetual interest-servicing wage-slaves because they cannot - for whatever reason - exercise financial discipline?
You can't stop everybody from self-harm, no matter what you do. This couple has already been given extra chances-- we cannot save them from themselves.