The Force for Good

Today, it’s clear that capitalism is far from perfect. On the other hand, neither is socialism. Is it even possible to create an economy that doesn’t result in lasting social damage? The Dalai Lama believes it is.

First, it’s important to recognize that most problems don’t arise from the principles of an economic system. Rather, it's the lack of moral compassion on the part of the people that implement the system. Both capitalism and communism can be corrupted by selfishness and exploitation.

Our current capitalist predicament has led to a rapidly growing divide between the rich and poor. In his book Capital, economist Thomas Piketty analyzes data trends over centuries to reveal how those with money to invest will always earn more than those who labor for their wages. An ever-increasing disparity and inequality between the rich and poor seems inherent to a free-market economy.

The Dalai Lama consequently positions himself as a Marxist in this respect, as Marxism at least features a moral dimension that takes people’s well-being into account. Of course, many attempts at socialist economies have proven disastrous. So what’s the Dalai Lama’s solution?

He envisions a compassionate economy where entrepreneurial spirit is accompanied by a sound social support system and taxes on wealth. In other words, we need for-profit companies with the hearts of nonprofits.

Such companies actually exist already. One is Prosperity Candle, which provides Iraqi or Thai-Burmese refugees, Haiti earthquake victims and about 600 underprivileged women with the opportunity to make a living by making candles.

In a similar vein, Muhammad Yunus’s Grameen Bank in Bangladesh pioneered microloans for people living in poverty. These loans help them start their own businesses, allowing them to become self-sufficient and eventually pay the money back, which can then be lent to others.

Companies like this reshape capitalism into something meaningful, not just profitable. This emerging movement may prove to be very successful at turning business into a force for good.