Sufficiency and Wealth Building

The key driver of the capitalism system is often said to be greed. That is because many link greed to wealth and success. Success and wealth obviously brings with them a high standard of living.

According to sufficiency theory, there is nothing wrong in the above way of thinking. Sufficiency does not sees greed as a negative factor. Sufficiency, in fact, is a suppliments to those concepts-by providing a proper conceptual frame-work for the link between greed, wealth building, and high standard of living.

Why is a proper link needed?

As we have seen with countless billionairs or economic conditions of the globe or individual countries advanced or developing, often, the link between greed, wealth building and high standard of living falls apart.

  • Un-checked greed can result in anti-competitive, anti-free commerce and monopolies. This in-turn, kills entrepreneurership and the industry’s ability to innovate.
  • Un-checked wealth building can result in a society that is un-just economically, shutting off new talents and limiting the customer base.
  • Un-checked high standard of living can result in an overly reliance on materialism at the expense of broader knowledge building-and therefore, harming the environment and research and development.

Sufficiency theory advocates the correct path to wealth building. This correct path of wealth building, will result in an opportunity for those with the ability to capitalize on opportunities and prosper, that is far greater-meaning that wealth building through the sufficiency concept will result in an available pie that is much bigger.

What is wealth building according to the sufficiency theory?

Simply said, capitalist has a responsibility above all else-not to wealth building-but to not killing the goose that lays the golden eggs. In other words, capitalist must think of the capitalist system, before thinking of building personal wealth.

Sufficiency, Free Enterprise and Capitalism

Joseph Schumpeter-the father of sustainable capitalism thinking-said that capitalism will eventually fail. But that failure will not be caused by the rising up of the politariat demanding socialism or communism, but that failure will come from the lost of moral value amung the capitalist class.

Obviously, that is a warning that to keep capitalism and free enterprise going, those that believes in capitalism-must above all else, maintain a very high moral standard.

What is high moral standard in the capitalism system? Simple, moral standard in the capitalist system is a correct balance of fear and greed-prosperity and stability.

If anything is to be learned from the current economic crisis, it is that the old saying that “nothing exceeds like excess” is truly the wrong way to go. An excess of any single concept that is at the cornerstone of Capitalism-such as greed, fear, prosperity or stability-is truly harmful to free enterprise and capitalism. 

Abiet that in certain areas, such as research and development, an excess is necessary and shortfalls avoided-but in most areas such as finance and banking, an excess here will kill free enterprise and capitalism.

Sufficiency is a concept that is anti-extremes.

Sufficiency is therefore an integral part of sustainable capitalism-because the concept attempts to establish a balanced relationship amung concepts such as fear, greed, prosperity and stability.

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