Progressive capitalism? United States saw the largest expansion of billionaire class in 2024

By Bhabani Shankar Nayak 

The Nobel laureate economist Prof. Joseph E. Stiglitz continues to advocate for capitalism in a progressive form and its potentials for human wellbeing. Prof. Joseph E. Stiglitz in his New York Times article on “Progressive Capitalism Is Not an Oxymoron” (19th April 2019) defines progressive capitalism as “a new social contract between voters and elected officials, between workers and corporations, between rich and poor, and between those with jobs and those who are un- or underemployed”.  

This broken Lockean contract, further reinforced by Westphalian ideology, is central to the rise of contemporary capitalism. However, the question remains: how can such a contract transform capitalism with progressive values? If the Lockean framework—rooted in property rights, individual freedom, and limited government—is to align with progressive ideals, it would require a mass revolution, and ornamental reforms will not help.  Prof Stiglitz argues that government intervention through rules and regulations is necessary to curb neoliberal market excesses and provide capitalism with a progressive face—one that expands human freedom and democracy, both essential for a good society. 

However, capitalism as a social, political, cultural, and economic system often undermines democracy, human freedom, and other progressive values. In advanced capitalist countries like the United States, inequality is at its highest level, while incomes decline, unemployment rises, and issues such as hunger and homelessness persist today. Historically, people lived longer in rural Surrey, Sussex and Kent than in capitalist industrial cities like Manchester and Liverpool in the United Kingdom.  It is clear that the rise of capitalism did not lead to better living and working conditions or higher human welfare.

The UBS Billionaire Ambitions Report (2024) reveals that “the richest 1.5% own almost 48% of the world's wealth,” and that advanced capitalist countries, such as the United States, saw the largest expansion of their billionaire class in 2024. The report further highlights that the total wealth of just 26 billionaires exceeds the GDP of several countries, including Brazil, Italy, Canada, Russia, Mexico, South Korea, Australia, and Spain. As wealth becomes increasingly concentrated in the hands of a few, the majority of working people continue to suffer under various forms of marginalisation. Only 1% of the American population controls 40.5% of the country's wealth. Such worldwide wealth inequality is a product of capitalism as an economic system, which has accelerated the concentration of wealth in the hands of a few while marginalising the many. Therefore, the "human face" of capitalism or "progressive capitalism" is a myth designed to sustain wealth inequality and exploitative working conditions without fundamentally changing the capitalist system itself.

Today, the cost-of-living crisis in western Europe, the rise of food banks, and increasing food insecurity among children in contemporary capitalist Britain are clear signs that capitalism has failed to meet people's basic needs. However, intellectuals like Prof. Stiglitz still argue that progressive capitalism offers an alternative, where market forces can be channelled to serve society. There is a fundamental paradox in Prof. Stiglitz’s proposition—how can governments regulate markets to serve society when markets, through corporate influence and wealth concentration, often control governments, political parties, individuals and societies? The rise of different forms of crony capitalism has further consolidated capitalism in different steps of society and concentrated wealth in the hands of few. 

There is no doubt that Prof. Stiglitz exposes the limits of capitalism and the failures of neoliberalism as a project. His new book, The Road to Freedom: Economics and the Good Society, is a direct critique of neoliberalism. However, he still believes in the progressive potential of capitalism, arguing that it can be harnessed for a better society through market regulation. Such ahistorical arguments lack even a basic understanding of human experience with capitalism over the last few decades. Capitalism has unleashed barbaric forces across the world and is fundamentally opposed to progressive values.

Progressive values promote human freedom, deepen democracy, expand human rights, and promote the growth of a liberal society against all forms of illiberal orthodoxies. Capitalism, on the other hand, often aligns itself with illiberal, reactionary, right-wing, and authoritarian forces to expand its profit-driven empire through dominant market forces. It has contributed to the erosion of democracy, the undermining of citizenship rights, and the support of wars and conflicts to seize natural resources. Therefore, the concept of progressive capitalism is an oxymoron, as capitalism inherently contradicts the very values of progressivism by prioritising profit over democracy, equality, and social well-being of people. 

Therefore, capitalism in any form can never be a viable alternative, and there is no solution within capitalist praxis. Capitalism cannot be reformed and will never serve the interests of the working masses. In this context, the choice is clear: socialism or capitalist barbarism. Socialism is the only alternative that can work for the people and the planet, advancing a society based on peace, prosperity, and solidarity. Socialism, as a system, ensures equality, liberty, justice, and democracy. Thus, the struggle for socialism is not only a struggle for emancipation from capitalism but also for human freedom, with the goal of creating a humane society for all.