I have just read of a new report that claims the "richest 2% of adults own half the wealth" of the world ( http://news.bbc.co.uk/2/hi/business/6211250.stm ). I had already been aware of the fact that, while the Dow hits new highs daily and we all rejoice (even though the vast majority of us have no stake in any of the stocks), our poverty rates have coincedentally reached historic highs. I am not a communist, and my knowledge of Marx is to the extent where I only can agree to the most general principles. One concept, however, where I think Marx (or maybe more accurately, Engels) hit the nail on the head is the idea of false consciousness. I see this phenomenon occuring in two separate strains: one for liberals, and a more virulent one in conservatives.
Let me begin by directly quoting a simple explanation of what false consciousness is: It is the misleading or erroneous understanding of how capitalism comes to benefit the proletariat. (search "false consciousness" in Wikipedia for more.)
Now let's examine how false consciousness is manifest in American thought:
The most obvious and deplorable -the "vanguard" of false consciousness, if such a term might be used- is in Libertarian ideology. The simple idea is that because free competition, or "pure" capitalism, is the most efficient method towards producing capital, and seeing as capital is desirable by everyone, we should aspire to institutions as close to pure capitalism as we can. I certainly don't deny that capitalism is the best method to procure the most (sum) wealth, but I strongly deny that the greatest sum amount of wealth is in it of itself desirable.
Strictly hypothetically, if a method was able to produce the greatest amount of wealth on the condition that 90% of the wealth was dispersed amongst only 5% of the population, would it be the most desirable method? From behind John Rawls' veil of ignorance (that term can also surprisingly be found on Wikipedia), I think it is safe to conclude that we would not agree on such terms. Of course, there is a very elementary capitalist response to such a claim: that capitalism does not necessarily spread wealth so unevenly. Far be it from me to commit myself to a pro causa non causa (also on Wikipedia) statement by saying that, because America is capitalist and our gap between rich and poor is strikingly similar to that hypothetically outlined, capitalism must necessarily create such gaps. No, I will stop short of making that claim just yet, but the correlation (obviously not necessarily the causation) of wealth disparity and capitalism is striking. It remains to be demonstrated that capitalism inherently leads to such disparity, and I am as far from an economist as can be imagined, but I do have some points to offer on the argument from a philosophical standpoint.
Why is it that capitalism might necessarily lead to income disparity that adversely effects the majority of the population? Well, if the grandfather of Capitalist philosophy, Adam Smith, was correct that humans are inherently self-interested the problem seems to present itself. If beneficience is virtuous (and I would absolutely love to have someone challenge that assertion), and humans will not if left to their own devices act beneficiently, but rather act only in self-interest, then pure capitalism makes no appropriations for beneficience. What is the impetus, within the pure capitalist paradigm, for the act of beneficience? If there is no incentive to give to those in need, within capitalism it follows analytically that you will not give to those in need. What incentive could capitalism offer? Maybe that your givings to charity will increase your social standing and people will buy more of your products. Maybe that you pay your employees more so that they can afford your products (a la Henry Ford). Basically, any conceivable reason you might find for it to be strictly in your self-interest to give to those in need is an incentive capitalism would purport to offer. But how many of these incentives actually exist? Furthermore, is it enough to care only that others have enough money to benefit you? Because you don't inherently care for others' well-being it would also follow that, if through not caring for others' well-being, but actually hoping against their well-being you were more greatly benefitted, you would desire that outcome. In other words, if it would benefit you more to use slave labor than to give to charity, by Adam Smith's model you would be committed to slave labor. The libertarian argues, on this point, that humans are opposed to slave labor and wouldn't buy your products, so it wouldn't be in your interest in the first place: but I would point to Nike and the Gap and disagree. If humans are interested in themselves, and it benefits them to buy cheaper products (via child labor), where does this absence of a market for such ill-produced goods spring from? It doesn't, and if it did, it would require something apart from Adam Smith's idea of self-interest to justify its existence. That something is either government regulations, and/or (Marx's idea) that we shouldn't make claims about human nature in the first place. If we want to avoid all of the ills that accompany pure self-interest (disregard for the environment, indifference to others' suffering that could be alleviated through personal sacrafice) we are committed to something apart from strict self-interest in the first place.
I have to leave this thought (and the many, many others I have on the topic) quite abridged for now because of finals, but there will be more. As I see it, unless complete individual freedom, no matter what consequences that freedom may bring, is a virtue which trumps all others, Libertarianism is at best misguided and oblivious to history. The faith in the self-interested invisible hand to procure a best overall world for everyone is, to my mind, one small step below scientology in terms of plausibility.