[From my blog]. As effective altruists make increasing forays into politics, I thought it would be good to share what I have found to be one of the most useful conceptual distinctions in recent political philosophy. Many people think if you’re in favour of capitalism you have to be in favour of ruthless selfishness. But this isn’t so. As the philosopher Jason Brennan has argued,[1] we ought to distinguish capitalism – a system of ownership from selfishness – a social ethos.
Capitalism = The private ownership of the means of production.
Socialism = The collective ownership of the means of production.
People have an ethos of selfishness insofar as they pursue their own self-interest.
People have an ethos of benevolence insofar as they pursue the interests of others.
Why accept these definitions? Firstly, they align with the commonsense and dictionary definitions of ‘capitalism’ and ‘socialism’. The elision between capitalism and an ethos of selfishness tends only to happen in an informal or unstated way. People unfairly compare capitalism + selfishness with socialism + universal benevolence and conclude that socialism is the superior system, when in fact universal benevolence is doing a lot of the work. Secondly, if we conceptually tie capitalism and an ethos of selfishness, then we will be left with no term for a system in which the means of production are privately owned and everyone is perfectly benevolent. On the other side of the coin, if we conceptually tie socialism and benevolence, then we will be left with no term for a system in which the means of production are collectively owned, but people are extensively motivated by selfishness.
With these definitions in tow, we can infer the following important point:
The stance one takes on the correct social ethos implies no obvious stance on the justifiability of capitalism or socialism.
Many effective altruists are strongly critical of the ethos of selfishness: Peter Singer believes that you should give up on all luxury spending in order to help others. However, this does not mean that capitalism is bad because capitalism is not conceptually tied to selfishness.
The question of which system of economic ownership we ought to have is entirely separate to the question of which ethos we ought to follow. Effective altruists and others have made a strong case for an ethos of benevolence, but finding out whether capitalism or socialism is better involves completely different empirical questions.
Update: To pre-empt a criticism that I don't think it hits the mark, note that I am saying that capitalism is not, as a conceptual matter, defined as a system in which people are selfish. I am not arguing for or against the proposition that capitalism creates incentives for people to be selfish, or makes people more selfish than the socialist alternative. This is a distinct empirical question.
Thanks to Stefan Schubert for advice.
Hi! Apologies for response delay.
"True, but to if I put myself in the perfect altruist company owner shoes I would really want to delegate the allocation of the my charitable giving, because I am too busy running my company to have much good information about who to donate to."
I agree with that usually it is not efficient for same person to take care and optimize 1) (for-profit private) company operations 2) allocation of charitable giving. So person doing 1) would do well to delegate 2) to someone who she trusts.
In any case, I reiterate my previous point: I don't think having "benevolent" companies would be something I support (benevolent in the sense that the company commits to donate all profits) because: Firstly, it would decrease the possible investor base because only strictly altruistic investors would be interested and thus it would not likely able to raise as much funding as a "non-benevolent" company (altruistic investors are also interested in "non-benevolent" companies because they can freely donate any profits they make). Secondly, there is disagreement among altruists of how to best donate. Thus, if profits are given to investors, each altruist can choose personally how to donate. So even altruistic investors might be hesitant to invest in a "benevolent" company I outlined here.
As far as I am tell, it's best to have a for-profit company optimizing production and maximizing profits which are distributed to investors some of which can be efficient altruists who in turn donate them as they see fit. Charitable givers can delegate their giving to a fund of charities of which I think OpenPhil is an example of.