Economy Above Everything (?)

reflections from the election

"My $100,000 salary is now worth $74,000 due to inflation. How can I possibly care about the environment or reproductive rights when I can't afford the lifestyle I once had? Neither of those issues impacts my daily life."

I understand how inflation is making it harder for us to maintain the life we once had, and that feeling of financial insecurity is real. At the core of capitalism lies the pursuit of financial gain, yet this can only be achieved through a labor force shaped by social, racial, and gender equity. We can't expect success in one aspect of society without nurturing others because our economy and its opportunities are inextricably linked.

Our economy is not just about profits and transactions—it's about the people who drive it. It's built on the promise that every person, regardless of race, gender, or background, has an equal chance to contribute. We all thrive when we extend the same rights and opportunities to others that we wish for ourselves. When we lift someone up, we’re not just helping them—we’re strengthening the foundation of our entire economy. This isn’t just an act of charity; it’s an investment in a more prosperous future for all of us.

Here are three crucial reasons why social issues are equally important as the economy:

1. Capitalism thrives on innovation-driven competition. In a country with as many distinct identities as the United States, maintaining a competitive economy requires contributions from individuals with varied backgrounds. By broadening who can compete, we tap into unmet needs and expand potential profits—essentially "growing the pie." The tech industry's rapid advancement exemplifies this openness to diverse players. However, its continued success depends on the growth of related sectors like healthcare, education, and environmental industries. We need both industrial diversity and individuals of different racial and gender identities to flourish. When we embrace immigrants, the scope of possibility only grows. Embracing folks with backgrounds different from ours promote new ideas, businesses, and thus more jobs. America was built by immigrants who seek to push the limits on what is possible. Our interconnected system feels the impact when entire groups are denied fair opportunities. The success of various industries and racial groups creates a ripple effect. Innovation in one field sparks competition, generates opportunities in related sectors, and ultimately reinforces capitalism's strength.

2. Our economy relies on a diverse workforce, which must have equal opportunities and freedoms to progress. Neglecting any group affects everyone. When women's rights are restricted, the repercussions ripple through society. Consider a young man aspiring to pursue higher education. If his partner can't access safe reproductive healthcare, an unplanned pregnancy could derail both their futures. Or imagine an expectant father whose wife faces a life-threatening pregnancy complication. If doctors are unable to provide necessary care, the potential loss would devastate the entire family. When we passively accept policies that strip away fundamental rights, we're not just harming individuals—we're impeding the progress of our entire society. The increased participation of women in the workforce has contributed $2 trillion to our GDP (Fortune). If we continue down this path of exclusion and inequality, we’re not just harming individuals—we’re choking the lifeblood of our economy. A society that stifles opportunity for half its population cannot sustain growth. When injustice becomes embedded in the very fabric of our economic systems, the ripple effects are devastating—not just for those who suffer directly, but for all of us.

3. Social institutions such as public education and taxes are the fabric of our economy. While you may attend or send your children to private school, or believe your AI-powered company doesn't rely on tax-funded infrastructure like roads and libraries, this couldn't be further from the truth. Picture a world where only half of the population is allowed to reach its full potential. The streets of Silicon Valley would be quieter, the classrooms emptier, and the labs with fewer bright minds solving tomorrow’s problems. The lack of resources doesn't just hold back individuals—it stifles the very creativity that drives economic growth. Our lives' ease depends on the ease of others—people we might not know personally but certainly need. AI utilizes computing servers housed in large warehouses, maintained by real humans who need sound roads and access to libraries for education. Even the most technologically advanced grocery store requires workers to turn on the lights and transport food. The food we eat and medicine we take must be regulated by non-partisan government health entities. Our economy depends on taxes to fund agencies like the Department of Education and the Food and Drug Administration, which keep us all healthy. Acting in your immediate financial interest at the expense of those in lower socio-economic classes will surely backfire. Disregarding social systems deepens the divide between high- and low-income neighborhoods. When these systems break down, poverty grows, along with crime and injustice. We won't be immune to these effects, no matter the height of our ivory tower.

In our pursuit of economic growth and prosperity, we must recognize that sustained capitalistic success hinges on equitable social structures, racial equity, and gender-based progress. These aren't merely social justice issues—they're economic imperatives. A more inclusive economy bolsters our resilience against global headwinds. Let this serve as a reminder: we can't have our cake if we ignore the essential ingredients that go into making it.

Links for further reading:

1. The Opportunity to Advance Racial Equity (McKinsey & Company)

2. The economic benefits of equal opportunity in the United States by ending racial, ethnic, and gender disparities(Washington Center for Equitable Growth)

3. Still the Land of Opportunity? (The Brookings Institute)