Let us define capitalism as a system where most of the means of production are privately owned, where the freedom to use those means as one wants is relatively large and where the levels of taxes and state economic redistribution are relatively low. As we all know this system has always been criticized from the left, often from a Marxist perspective, where the main point of accusation is that workers are exploited, i.e., they don’t get the full value of their contribution to production.
Nowadays, however, the left seems to have a hard time arguing against capitalism, and bringing up Marx (or other more obscure theoreticians) surely does not help. There is no mass movement among workers in developed countries today who oppose capitalism, and it is difficult to rally them under the banner of “socialism”, when the examples of the Soviet Union, Cuba and other communist states are thrown back in one’s face.
In light of this I have to ask myself: why not bring up a simple moral – and explicitly non-Marxist – case against socialism, a case that virtually anyone can understand in five minutes? Namely: if capitalists did their moral duty, i.e., used their money to help other people, there would be no problem with capitalism. But the fact that there are a few superrich people who own most of the wealth in the world tells us that they are not doing their moral duty. To be substantially richer than one’s fellow human beings is in itself a moral failing, and the quickest way to remedy this is simply to tax them and spread the wealth around (and in some cases socialize the means of production).
Some might protest: if rich people are taxed heavily then people won’t go into business at all. That, however, simply reinforces the point that they are failing morally, being egoists and only ready to exert themselves if that can make them a lot richer than everybody else. A moral person should be willing to work for the benefit of other people (including people one will never meet). The question is, then, how the state should deal with people with radically different morals than the majority; but that is a question that must be handled by all social systems. Claiming that one may have to cater to a few business savvy egoists is not to concede that capitalism is good.
Personally, though, I don’t think anything disastrous would happen if, for instance, top marginal tax rates were raised to levels that were common a few decades ago (for instance, above 90% in the US during both Republican and Democrat rule). People will still create new businesses (and we should encourage people to do so cooperatively) if it allows them to live somewhat more lavishly than the “ordinary” worker, but still very modestly, compared to how CEO:s of large companies live now. Perhaps a first step would be to go back to the time when the CEO made “only” 20 times more than the worker (in the 1960s for the US), rather than 300 times more today.