Is capitalism corrupt? Switzerland is often hailed as a capitalist paradise: happy, healthy and rich. But is it also deeply repellent: secretive, elitist, greedy and hypocritical?
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Data leak exposes fraudsters and criminals
Is capitalism corrupt? Switzerland is often hailed as a capitalist paradise: happy, healthy and rich. But is it also deeply repellent: secretive, elitist, greedy and hypocritical?
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Switzerland is a land of contrasts. A country that never goes to war, yet where everyone is armed. It is the European home of the UN, yet it has been accused of playing a part in smuggling Nazi gold. And it is one of the world's most open economies, with some of its least transparent banking laws.
And it is these that have now embroiled it in a storm of controversy. On Sunday, The Guardian revealed that Swiss bank Credit Suisse has held more than £80bn in wealth for clients involved in drug trafficking, corruption and even torture.
Among their customers are a human trafficker in the Philippines, a Hong Kong billionaire accused of taking bribes and a Serbian securities fraudster.
But this is not just a Swiss problem. It is thought that at least £5bn in UK property has been bought with suspicious wealth.
That is why some think this is proof that capitalism is inherently corrupt.
This is nothing new. People have been arguing over this question for almost as long as capitalism has existed.
In the 18th Century, French philosopher Helvetius argued that luxury was sapping people's energy and undermining their love for their country and for their fellow citizens. Then in the 1800s, Karl Marx launched a new attack on capitalism. He argued that capitalism only created wealth by exploiting the poor.
But others have suggested that corruption can be a good thing. Dutch thinker Bernard Mandeville asserted that it was people, not capitalism, who were corrupt, greedy and self-serving. Capitalism, he claimed, could turn their individual greed towards the public good.
In the 20th Century, economists like Milton Friedman echoed Mandeville. They argued it was good for everyone if the rich were greedy, because they would invest their money back in the economy.
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Is capitalism corrupt?
Yes: Capitalism means getting richer at the expense of everyone else. When your only aim is to make money, no moral code can bind you.
No: Human beings are corrupt. Capitalism is the only economic system that can harness that corruption for the public good.
Or... Capitalism does create wealth, but it also creates corruption. We should try to control capitalism as best we can.
Keywords
Nazi gold - During World War Two, the Nazis looted many of the countries they occupied. It is thought that they disposed of this gold through Swiss banks, which are known to have received $440m in gold ($8bn in today's money) from Nazi sources.
Human trafficker - Human trafficking is smuggling people from one place to another for the purpose of forced labour or other kinds of exploitation.
Securities fraudster - Securities fraud refers to a variety of crimes involving stealing from or deceiving investors to enrich oneself.
Karl Marx - A 19th-Century German economist and philosopher who argued that capitalism was doomed to collapse.
Bernard Mandeville - A Dutch-born philosopher who lived most of his life in England. His most famous work is The Fable of the Bees, in which he argues that immoral behaviour is good for the public.
Data leak exposes fraudsters and criminals
(with apologies to The Guardian) Glossary
Nazi gold - During World War Two, the Nazis looted many of the countries they occupied. It is thought that they disposed of this gold through Swiss banks, which are known to have received $440m in gold ($8bn in today’s money) from Nazi sources.
Human trafficker - Human trafficking is smuggling people from one place to another for the purpose of forced labour or other kinds of exploitation.
Securities fraudster - Securities fraud refers to a variety of crimes involving stealing from or deceiving investors to enrich oneself.
Karl Marx - A 19th-Century German economist and philosopher who argued that capitalism was doomed to collapse.
Bernard Mandeville - A Dutch-born philosopher who lived most of his life in England. His most famous work is The Fable of the Bees, in which he argues that immoral behaviour is good for the public.