Envisioning the Evolution and Future of Capitalism
By: Grow Ensemble
Tags: Capitalism, Stakeholder Capitalism, Social Entrepreneurship, B Corp, Impact Investing

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It’s no secret that the capitalist system has done its fair share of damage to accelerate the climate crisis. In fact, more than half of all global industrial greenhouse gas emissions are from just 25 corporate and state-owned entities.

The development of market capitalism did not inherently place the planet on the bottom of the list; it got pushed there. But now, the evolution of capitalism is upon us as innovative social entrepreneurs are tackling issues related to climate change while using profit to do it. Leaders in renewable energy, product development, and the food industry are utilizing the same concept of the free market to regulate wages that incorporate the true cost of labor, elevating personal wealth for factory workers and farmers.

Check out our full video interview with Matthew Weatherley-White.

Various certifications have been built through the same system as capitalism but challenge it to do more. Fair Trade, Certified B Corporations, and communities like 1% for the Planet all demand more of the system we have.

So how are we seeing capitalism evolving and who is at the forefront of these changes? One larger than life proponent of capitalism turning into a force for good is Matthew Weatherley-White, co-founder of The Caprock Group, which handles financial planning for families. Through knowledge of free markets, the economic system, and the global economy, The Caprock Group helps make impactful investments that provide returns and serve as a force for good.

What Does the Future of Capitalism Hold?

A Brief History of Capitalism

Capitalism has been the dominant economic theory since the 17th century in Western Europe. The origins of capitalism can be attributed to a few factors, one being industrial capitalism and the Industrial Revolution, while another is Adam Smith’s influence that governments should have minimal involvement while free trade and competition persist. This element of government having little impact on free markets is referred to as laissez-faire and greatly influences economic policies.

At its core, capitalism enables the individual to act in self-interest and pursue both private property and wealth, thus avoiding the distribution of goods to the community. This differs from another prevalent theory of the 16th to 18th centuries, Mercantilism, which restrains the power of the individual to serve self-interest. In direct opposition to capitalism is Marxism.

Karl Marx believed that the Industrial Revolution exposed stark differences between the working class and the bourgeoisie. He advised the working class and followers of Marxist theories to rise up and take control of the means of production, which was in the hands of the world’s richest.

Advocates of capitalist philosophy argue that countries in the depths of poverty don’t have the same level of freedom that the richest countries do. If they could employ tactics of innovation and capitalism, they too could benefit. However, these proponents of capitalism continue to reap the benefits of poorer nations’ inability to compete in market systems.

Changemakers in the Field

You may remember the Occupy Wall Street movement started by a group of activists in New York City in 2011. At its core, the Occupy movement pushed for greater economic equality through a higher minimum wage and better treatment of workers. While the thousands of protestors who famously camped in city squares for weeks have dissipated since 2011, the Occupy movement is still informing massive change in favor of economic empowerment and climate change activism.

Today, many people are demanding more of capitalism. Conscious consumers are more interested now more than ever in where their food comes from, how their products are made, and where their dollars go. They want to support environmentally friendly companies or companies that publish their wages.

Some advocate for capitalism to remain in place but acknowledge that it must evolve to include sharing of wealth and focus on climate change solutions. As big business and industries that rely on factory production are some of the biggest polluters, consumers are asking those businesses to take a stand and utilize their entrepreneurial skills to address the world’s most pressing problems.