Interrupting the Debate: A Gen X Take on Compassionate Capitalism
Have you ever found yourself at a family dinner with multiple generations present when a touchy subject, like capitalism, is lobbed at the crowd?
If not, I highly recommend it. In fact, Forbes and Goodby Silverstein have been trying to drive more open conversations about capitalism through their campaign #DoesCapitalismSuck. You can read more about that here.
I’m from Gen X. Broadly speaking, we're a quiet generation that sits between the powerful baby boomers and the influential millennials. We're the middle children. Typically, I just listen and chime in with a line or two when the others pause for breath. But when it came to capitalism, I couldn’t hold back. The discussion raised typical and valid concerns: it pits the rich against the poor, prioritizes profit above all else, and harms the planet. All true.
However, I couldn't let the conversation end there. For this familial debate, I wanted to steer the conversation in a direction that doesn't blame the system itself, but the individuals who make the rules supporting it. In my view, blaming capitalism is futile. A system can't change unless the humans operating within it evolve enough to force that system to transform.
This line of thought led us to the significant shifts currently occurring in capital markets, with ESG (Environmental, Social, and Governance) and Sustainability at the forefront. I personally and passionately believe that the rules of capitalism have already changed in some regions, are evolving in many others, and will eventually alter in every part of the world that seeks to compete in contemporary society. Some label it compassionate capitalism. Regardless of the moniker economists assign, the way we move capital is improving (though not perfect, as humans are inherently fallible).
And that's what I passionately shared. The response was one of initial shock, mostly because a Gen Xer had interrupted a boomer vs. millennial debate. It's a rare occurrence. Candidly, I felt like a public service announcement inserted in the middle of a daytime soap opera: just awkward and out of place.
My stance on ESG and Sustainability was initially met with distrust and skepticism by the younger attendee. It wasn't until the millennial called a friend (in a move reminiscent of the TV game show "Who Wants to Be a Millionaire") for moral support that my perspective gained some ground. This trusted millennial friend thankfully concurred that ESG and sustainability had shifted the paradigm. For a fleeting moment, the debating millennial dropped her guard and showed genuine interest. Not in what I had to say, but in her fellow millennial's input. Together, they discussed this emerging, kinder shade of capitalism.
I bowed out of the conversation at that point, somewhat contented, before retreating to my quiet haven to watch music videos. However, I'm bracing myself for future debates. I anticipate the next one will center around how greenwashing has tainted ESG. To me, it circles back to the regulations governing our systems. With the recent strides made at ISSB – IFRS S1 and S2, I remain hopeful for improvement.
