#capitalism

In an earlier essay, I proposed a political bargain that I called Universal Security Capitalism: guarantee a basic floor beneath every person, while leaving the economic ceiling completely open. Nobody should be ruined by illness, hunger, homelessness, or temporary economic failure, but neither should extraordinary wealth be treated as intrinsically objectionable. A person who builds a company worth ten billion dollars and a person who earns very little while repairing old radios, writing novels, studying insects, or playing obscure music should both be permitted to pursue their own ideas of a worthwhile life.

I still find much of that argument compelling. What has become less clear to me is whether I properly understood the principle beneath it.

At first glance, guaranteeing healthcare, food, housing, and some basic level of income sounds like a proposal about economic equality. Yet equality was never really the part that interested me. I do not particularly care whether one person possesses a thousand times as much money as another, provided that wealth was acquired through legitimate exchange rather than fraud, monopoly, regulatory capture, or some other mechanism that prevents meaningful competition. Nor do I think a society becomes just merely because its citizens occupy narrower positions on an income distribution.

The concern that motivated the original proposal was different. I was interested in what people are actually free to do with their lives.

Imagine two Americans.

One wants to build a company worth a billion dollars.

The other wants to paint landscapes, repair old radios, play in a band, raise children, study insects, or write novels that may never sell particularly well.

There is no obvious reason that a healthy society should require either person to adopt the other's definition of a successful life. Nor is there an obvious reason that the first person becoming extraordinarily wealthy requires the second person to face homelessness if things go badly.

That suggests a political bargain that does not fit especially neatly into the usual American argument between capitalism and the welfare state:

Guarantee the floor. Leave the ceiling open.

Under such a system, every citizen would have some basic assurance of healthcare, housing, food, and enough income to remain an active participant in society. Losing a job would still hurt. A failed business could still wipe out savings. Choosing an economically unproductive life would still mean having less money than someone who spent twenty years building a successful company.

But illness, unemployment, or failure would no longer carry the threat of material catastrophe.

At the other end of the distribution, there would be no predetermined maximum fortune. If somebody builds something that millions of people willingly pay for and becomes fantastically wealthy, good for them.

We could even admire them.