Savage capitalism: Thriving economy or fractured society?
In an era of polarized debates, two influential recent Washington Post articles shed light on America's economic and social challenges.
Fareed Zakaria's piece, 'Don't believe the MAGA doomers on trade,' staunchly defends free trade as a pillar of the US' success. He posits that America has flourished under open markets and warns against upending global systems with misinformation.
Conversely, Shadi Hamid's 'Men are struggling to find love. Here's why' delves into the romantic hardships faced by men, citing factors such as educational disparities, the pitfalls of dating apps and deepening gender divides.
While both authors provide compelling analyses, they arguably underemphasize a pervasive force: 'savage capitalism,' a hypercompetitive system that enriches a minority while fostering inequality, debt and social disconnection. That said, capitalism's dynamism has undeniably spurred innovation, growth and opportunity. A balanced perspective requires weighing these benefits against the systemic costs to chart a path toward equitable progress.
Zakaria's argument for free trade is rooted in historical evidence and economic data. Post-Second World War, the US-led Bretton Woods system established the dollar as the global reserve currency, facilitating unprecedented trade expansion. Zakaria highlights how agreements like the North American Free Trade Agreement and World Trade Organization membership have elevated America's gross domestic product, with exports reaching $2.5 trillion annually. Manufacturing output also remains at an all-time high, in contrast to protectionist claims of decline.
Booms driven by easy credit lead to asset bubbles, followed by busts that disproportionately harm the working class
Dr. Turki Faisal Al-Rasheed
He debunks 'exaggerations' by noting that job losses from offshoring are offset by gains in the services and tech sectors. Protectionism, as seen in President Donald Trump's tariffs on steel and aluminum, has led to retaliatory measures from China and Europe, inflating costs for American consumers by an average of $1,200 per household, according to studies from the Peterson Institute for International Economics. Globally, free trade has lifted more than a billion people out of poverty, stabilized alliances and reduced conflict risks in a multipolar world.
However, this narrative overlooks how savage capitalism twists free trade into a tool for elite enrichment. Ray Dalio's framework in 'How Countries Go Bankrupt' illustrates the debt-credit cycle: booms driven by easy credit lead to asset bubbles, followed by busts that disproportionately harm the working class.
In the US, income inequality has soared — the top 1 percent captures 20 percent of national income, per Federal Reserve data, while median wages have stagnated since the 1970s despite productivity gains. Free trade's 'winners' are multinational corporations that exploit cheap labor abroad, decimating communities in places like the Midwest. Consider the opioid crisis in deindustrialized towns linked to economic despair or rising homelessness amid corporate tax cuts.
Geopolitically, American commitments exacerbate imbalances. Annual military aid to Israel exceeds $3 billion, defended as vital for Middle East security against threats like Hamas, yet criticized by groups like Amnesty International for enabling Tel Aviv's actions in Gaza and the West Bank that fuel humanitarian concerns. This spending diverts resources from domestic priorities, such as Arizona's school voucher programs, which expand choice but have shuttered public schools due to funding shortfalls, underscoring misaligned investments in education amid technological disruptions that automate jobs.
A vivid personal story underscores these realities. At a lavish Napa Valley party attended by individuals earning over a million dollars annually, I posed a provocative hypothesis to my American friend, who made $100,000 working in Saudi Arabia: 'You are richer than everyone here.' The room erupted in heated debate.
Once calm returned, I explained. Most 'wealthy' attendees owned less than 5 percent of their assets outright, the rest was leveraged through loans from financial institutions. Challenging them to produce $25,000 from savings in a year elicited silence; even $5,000 seemed unattainable for many, as they are trapped in cycles of high-interest debt. Vacation time? A month was impossible; a week was a stretch. This revealed savage capitalism's trap: a paradigm in which income barely covers interest payments, leaving even high earners in perpetual liability. My debt-free friend, with disposable income and flexibility, embodied true financial freedom. The group fell into thoughtful silence, confronting how the system prioritizes institutional profits over personal security.
America's strength lies in free trade and individualism, which drive innovation. But unchecked savage capitalism risks collapse
Dr. Turki Faisal Al-Rasheed
Turning to social dimensions, Hamid's exploration of men's romantic struggles is timely and nuanced. He outlines a 'crisis of connection' — men face higher unemployment and lower college enrollment rates, with women outpacing them in degrees by between 10 percent and 15 percent. Dating apps amplify this, creating a winner-takes-all dynamic in which the top profiles receive disproportionate attention. Studies show 80 percent of women message the top 20 percent of men.
Cultural shifts, like #MeToo's emphasis on consent, have made approaches riskier, while political polarization widens rifts: young men lean conservative, women liberal, shrinking compatibility pools. Hamid, drawing from his Muslim background, notes the erosion of traditional structures like arranged marriages or community matchmaking, leaving individuals adrift.
However, Hamid glosses over savage capitalism's role in amplifying these woes. Corporate-driven inequality breeds precarious gig economy jobs that offer no stability, deterring family formation. Debt burdens — from student loans averaging $30,000 to housing costs — heighten anxiety, making vulnerability in relationships unappealing.
Individualism, a capitalist hallmark, celebrates autonomy but dismantles communal ties: family sizes shrink, religious affiliation drops (Pew research shows 29 percent of Americans to be unaffiliated) and social isolation rises, with one in three men reporting no close friends. Women, empowered by career advances, seek partners who match their ambitions, but systemic barriers leave many men economically sidelined.
On the flip side, capitalism's opportunities foster personal growth; women's progress enhances societal equity and tech such as apps have facilitated millions of marriages. Globally, not all cultures succumb — parts of Asia or Europe with stronger social safety nets report higher relationship satisfaction.
America's strength lies in free trade and individualism, which drive innovation in artificial intelligence, biotech and renewable energy, positioning it as a global leader. But unchecked savage capitalism risks collapse: debt-fueled volatility, as Dalio warns, could trigger inflation or austerity, while social fragmentation breeds extremism, evident in rising populism. Balanced solutions are imperative: reform trade deals with labor and environmental safeguards, redirect foreign aid toward diplomacy over militarism, and bolster domestic investments in universal healthcare, affordable education and infrastructure via bills like the Infrastructure Investment and Jobs Act. Culturally, promote policies that rebuild communities, such as paid family leave, mental health support and incentives for civic engagement. Embracing multipolarity, with partners like the EU and emerging economies, can distribute burdens.
As Zakaria and Hamid illustrate, dismissing critiques as 'lies' or surface issues ignores root causes; addressing them fosters resilience. True greatness demands equity for wallets and hearts, ensuring prosperity benefits all, not just the elite.
• Dr. Turki Faisal Al-Rasheed is an adjunct professor at the University of Arizona's College of Agriculture, Life and Environmental Sciences, in the Department of Biosystems Engineering. He is the author of 'Agricultural Development Strategies: The Saudi Experience.' X: @TurkiFRasheed
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