John E. Ikerd argues that sustainable capitalism is needed based on common sense principles. He believes that neoclassical economics and unrestrained capitalism lead to the exploitation of people and resources for selfish gain, undermining social well-being and happiness. Sustainable capitalism should be based on classical economic principles of pursuing happiness through caring relationships with others and future generations, rather than just the pursuit of wealth. It requires managing the economy in a way that meets current needs without compromising the ability of future generations to meet their needs through ethical treatment of all stakeholders, environmental stewardship, and a balanced approach that considers both economic and social factors.

1. Sustainable Capitalism
A Matter of Common Sense
John E. Ikerd
DA 8000
Patcharawan Ubonloet
22 Feb 2015

2. Outline
• About the author
• Why Sustainable Capitalism?
• The First Principles:
A Matter of Common Sense
• Sustainability
How do we manage?
• Sustainable capitalism
2

3. About the author
• Believed in neoclassical economic
and free market
• An agricultural economist
3

4. Why Sustainable Capitalism?
• The pursuit of economic wealth is a pursuit of
individual, hedonistic and sensory pleasure.
• The pursuit of individual wealth encourages the
exploitation of others for self gain, which destroys
human relationships social happiness.
• Economic attempts to be a hard science by using
statistical and economic model to manage and
predict economic growth.
• Ikerd suggests that economic is “living principles”.
Social scarcity, matters of morality- environmental
ethics relates to truth and rightness cannot be
evaluated in dollars and votes.
Problem with neoclassical economics
4

5. • Degeneration of exploitative, divisive society
resulting in rising unhappiness and eventually in
revolution.
• Negative ecological and social impacts
The rising ‘‘corporatism’’- domination of
corporations is the greatest threats to
sustainability are directly related to the industrial
approach to organizational management.
• It creates non-existing needs through advertising
leading to exploitation of global resources.
• No assurance of producing “the right stuff” to
meet today and future’s real needs.
• Capitalistic economy is incapable of
transforming individual self-interests
into society well-being.
Why Sustainable Capitalism?
Problem with capitalism
5

6. 6
Impacts of capitalism
Why Sustainable Capitalism?
• Poor treatment of factory workers
• Negative ecological and political
impacts of industrialism.
• Polluters and extractors of nonrenewable
and renewable resources.
• Corporations disrupts local economies.
• Unfair economic system as social and
moral constraints to economic growth is
removed.

7. Why Sustainable Capitalism?
• Values in life
• Relationship among things
• Equity justice
• Ethic, morality and
intergenerational equity
along with growth and
development
• Ecological and social
implications
The return of classical economic principles
7

8. The First Principles
A Matter of Common Sense
• A new economics of sustainability based
on principles of living systems, capable of
self-renewal and regeneration for present
and future generations.
• ‘‘ The First Principles’’ of classical
economics – the pursuit of happiness - not
just material well-being but relationships
with families, communities, cultures and
societal well-being instead of just the
pursuit of wealth.
• As a human we need for both caring and
sharing- a spiritual connectedness.
• Our Common sense tells us that ethics and
morality- care about others- matters in
creating economic of happiness, social
well-being and sustainability.
8

9. Sustainability
Liveable evolution
Meet the needs of people today
individually and collectively
Preserving opportunity
for future generations
Sustainability: How do we manage?
9

10. Sustainability: How do we manage?
Sustainability
Happiness and Quality of life
Public economy
Private
economy
C o m p e t i t i v e n e s s
M a r k e t/ E f f i c i e n c y / B a l a n c e s u p p l y & d e m a n d
Infrastructure
P h y s i c a l / F i n a n c e / L e g a l
G o v e r n m e n t
10
Macro economic stability
Sustain economic development/
Economic & social integrity/ Profits shared/
Care for natural& social community
Moral/consensus/
rightness/relationship
Produce common goods to
equal rights people
a l

11. 11
Sustainable Capitalism?
• Hearts and minds of people
• Common sense
understanding of the fundamental first
principles- enlightened concept of self-
interest.
• A return to the pursuit of a more
desirable quality of life
, not the financial wealth.
• An understanding
that a desirable quality of life depends
upon the rightness of our relationships
with each other and with the earth.
• Willingness
to return to the pursuit of happiness.
Begins with

12. Thank you
12