Capitalism, the economic and political system in which a country’s trade and industry are controlled by private owners for profit, has its pros and cons. Nigeria is largely a capitalist nation although it has been described as a mixed economy. Some of the characteristics of capitalism include private property, capital accumulation, wage labour, voluntary exchange, a price system and competitive markets. The production of goods and services is based on supply and demand, known as market economy, rather than central planning, known as planned or command economy. My check shows the system began in the 16th Century after a deadly plague, perhaps in the proportions of the current coronavirus, said to have wiped away 60 per cent of the European populace. Coronavirus will not operate to that magnitude, given that some vaccines have already entered trials just as some drugs have been found to hasten recovery, beside the general efforts to boost the immunity of infected people until they become well again. Old people have been admonished to strictly stay home because immunity declines with age, which is why the virus kills old people faster.
But capitalism came after that plague when newly formed class merchants began to trade with foreign countries and began to dictate overall pricing and production of goods. In 1776, the Scottish economist, Adam Smith, published the book “The Wealth of Nations,” which is regarded as the bedrock on which capitalism stands. When colonialism set in, the colonial masters naturally took the system with them. But some cultures were based on capitalism before the colonial masters came.
Individual capitalists are typically wealthy people who have a large amount of capital (money or other financial assets) invested in business, and who benefit from the system of capitalism by making increased profit, thereby adding to their wealth. Many capitalists are not good at sharing profit, which is why the system is largely criticised as a huge driver of inequality, both social and economic. It tends to take the position of “greed is good.” But the reality is that greed drives profit and profit drives innovation and product development, which means there are more choices available for those who can afford it.
It appears to be the most successful economic and political system in the world, given that all other systems have tended to collapse. When the biggest alternative economic system as practised by the defunct Soviet Union collapsed with the disintegration of the union, it became the death knell for alternative economic systems. Opponents of capitalism say it is by nature exploitative, and leads to a brutally divided society and tramples on the working class in favour of fattening the pockets of the rich. But capitalism is the most successful economic order in the world, which is why former British Prime Minister Margaret Thatcher said there was no meaningful alternative to capitalism.
I am inclined to agree with that submission given what has become of such alternative systems like China, where, in spite of all attempts to remain communist, the system has inevitably tended towards capitalism. Societies based on capitalist tendencies do better than others with alternative systems.
The mixed economy in Nigeria has left a sour taste in the mouth, which was why state companies were privatised. Some of them have been commercialised so much so that some politicians, including three-time presidential aspirant, Atiku Abubakar, say the nation would continue to go cap-in-hand if the Nigerian National Petroleum Corporation (NNPC) is not privatised.
I have nothing against capitalism, but I do not believe that the system should be so inhuman that profit should be brewed from the blood of workers. The time must come when a human face must take the place of profit. Capitalism must not put profit at the expense of human life. When President Muhammadu Buhari announced three months moratorium for loans given out by the Central Bank, it was not because his economic advisers did not know that it would hurt the business interest of the apex bank, but the coronavirus pandemic necessitated actions that would allow people stay alive. Lagos State government had expended over N10 billion to save lives, because people have to be alive to enjoy infrastructure. It was, therefore, disheartening when a bank chief executive recently put profit ahead of human lives when he mooted the idea of sacking people at the lowest rungs of the labour in the bank. There was an outcry on social media such that may have resulted in further bad business for the bank until the Bankers’ Committee announced that there would be no loss of jobs at this time. That bank CEO reacted like a typical capitalist when he held a virtual meeting with his staff and told them that people would be laid off, salaries would be cut, in the face of the negative effects of the coronavirus, which has kept businesses down for weeks, naturally, and profit came first for him. I have nothing against cutting staff pay, if that would keep them away from the unemployment line, it should, in fact, be the way to go for businesses, rather than pursue the greed of capitalism and throw people into the unemployment line.
The irony of the matter is that the bank chief is in the league of people whose firms were compelled by the Central Bank to contribute at least N1 billion each to the fund to fight the strange pandemic. The bank wants to lay off staff to recoup the donation? Does it want to rob Peter to pay Paul? Many prominent capitalists have made handsome donations in the bid to fight the pandemic. The Dangotes, the Mike Adenugas, the Folorunso Alakijas and several others have opened a substantial part of their treasury to help fight the pandemic. Dangote Foundation, has, among other things, funded the establishment of a testing laboratory in Kano. Hundreds of others have provided palliatives of various kinds in the midst of the pandemic. If they go round to sack their staff as a result of the pandemic, rather than cut salaries, then they would have made the donations on the blood of their staff.
This would be the worst time to throw people out of jobs. If businesses would have to run on no profit for one or two years on account of this pandemic, they should. Their owners should keep away the greed that drives capitalism at this time. Things are bound to get better and they would make up for their loss. People need to be alive to work for them to make more money. I plead that, against the run of business principles, capitalism ought to be given a human face for now.