With the emergence of subprime crisis in the 21st century, it makes people and government reconsider the sustainability of capitalism. It is no doubt that capitalism has achieved amazing achievements in economic growth, but with the entrance of the new century, serious problems not only include economic crisis are emerged concerning the sustainability of capitalism.
Economic sustainability is the most essential part of sustainable capitalism. Without it, both the social sustainability and ecological sustainability are meaningless. Take American as an example. Nearly 33 economic depressions, which is the main form of economic instability, have taken place since 1845. The disasters bring suffers for ordinary working people, resulting in high employment, homeless and heavy debate. Both the government and enterprises should do something to help get rid of such situation.
The government plays an important role in the process to fulfill the sustainability of capitalism (Ikerd, 2005). Anonymous points out that the global crisis, while taking its toll on the economy's short-term growth prospects, should not sidetrack policymakers from pursuing their structural reform agenda to lift the economy's long-term growth potential. The action of American can best illustrate this. In 2008, with bankruptcy of Bear Stearns Cos in American followed by closing down of Lehman Brothers Holdings Inc, American meets with its most serious financial crisis since The Great Depression. Financial crisis, a state of unsustainable capitalism, profoundly reflects opaqueness of the financial system, failure in macro economy or supervision policy and moral hazard in financial service industry in developed countries. The Obama administration has reconceived the importance of sustainable capitalism and has such determination to reform its current finance system. The historic legalization of Dodd-Flan Wall Street Reform and Consumer Protection Act, which aims to set up the Bureau of Consumer Protection and impose restrictions on financial derivatives, is one of taken measures. There are many methods that government can take to accelerate this procedure. For example, the perfect capital market related legal system to provide directly protection for investors. Also strengthening cooperation between countries is another effective way to solve problems, which are related with economic sustainability. Economic globalization is playing an absolutely necessary role in capital markets with the development of communication and transportation means. Capital markets and economic development is profoundly affected by economic globalization. In the world capital markets are combinded more tightly. Additionally opportunities for money changing are expanding. Meanwhile, those poor countries finding they do not have more chances to obtain aid financially and subsidized loans and are becoming more dependent on international capital markets to help them get funds for development projects (Bernasek, Phillips, & Ross, 2005). Both developing countries and developed countries are closely linked by economic globalization. Thus cooperation between countries is pressing required for sustainable capitalism. Finally, the government should pay much attention to education. Tallo (2001) presents us the essential of technology for financial development. Technological progress greatly affects financial system. The widespread use of computers and electronic communications, which largely changed working ways used by the financial system, can best illustrate the point. Also innovation spirits and new thinking patterns are not impervious to financial evolution which is views as an indispensable step towards sustainable capitalism. All these can be achieved by education.
Enterprise is essential for our economic activities as usual. They are also responsible for the economic sustainability. IP (2008) points out that corporate social responsibility is increasingly prevalent in advanced economies in the West not only on corporate the level but also on state level. The enterprise of Asia pays much attention to corporate social responsibility recently. This trend can be illustrated by Taiwan where 700 publicly listed companies on corporate social responsibility have highlighted the current CSR situation. Corporate scandals, corruption and tax evasion are no longer unfamiliar. All these corruption and tax evasion activities, which greatly harm the economic environment, should be strictly prohibited.
2.2 Ecological sustainability
The ecological sustainability is the fundamental aspect of capitalism sustainability. The degradation of environment is a growing impact on life quality: the health of people, poverty level, economic development and even national safety (Rodina, 2006). In past decades, Corporations experienced rapid economic growth, but it also pays the price that the environment is harmfully polluted. It should be realized that today’s economic planning is too short-sighted, which only concentrated on current interests. Take it further, capitalist do not care the consequence of resource overexploitation causing the ecological unsustainable as a result of there is no stimulus from the economic system. Many enterprises are lacking of corporation environmental responsibility. He and Chen (2009) argue that the lack of corporation environmental responsibility mainly due to the company’s competitive methods of cost cutting enables them limited in resources, such as money, employees, information, or added value. It is a fact that enterprises have their limitations in corporation environmental responsibility, but they should devote in the environment protection for the long time benefits from the environment. To fulfill their responsibility, firstly, they should adopt the high-tech method to minimum environment pollution.
From the perspective of government, legislations should be introduced which force capitalist to controlling and governing the pollution they create during the athletic process of capital to prevent the overexploitation of the resource which induces the capitalism unsustainable, A systematic legislations can not only improve the sustainability of ecological, but also in the economic development.
2.3 Social Sustainability
Social sustainability is the most important part of the sustainability. The criteria of social sustainability including the social stable and comfort sensation people gained from society. To improve social sustainability, government should establish a systematic social security system, perfect retirement mechanism and vigorous finance policy.
The most important part of the security system is the employment mechanism. Take American as example, in 2006 ,with the subprime crisis emerged , a lot of bank and corporations declared bankruptcy including two major financial industry giants Lehman Brothers declared bankruptcy and Merrill Lynch agreed to sell itself to Bank of America(REPORTENT,2008). Countless people are unemployed in this economic crisis which direct lead to social unsustainable due to American lack of good social security system. From this case it is not hard to prove the employment security system is the basic guarantee measure which a sustainable society need.
Moreover, the retirement security system is an important way to improve the comfort sensation people get as well. Researches show an underfunded pension system not only could be a drag on economic growth, but it also can influence the sustainability of society as a consequence of lack safe sense. Finally, Social welfare, which depends on the satisfaction of three conditions: the satisfaction of needs, solve of the social problems and the improvement of opportunities (Adivar et al. 2010), should also be valued. Security system can be established or enhanced by government, but it is also should pay attention to that society sustainability also is a matter of ethics and morality, without restraints of ethics and morality, society inevitably degrade into savage society. So it is important to perfecting the education system which can high improve the stability of society.
All in all, government should make investments ranging from security systems to education system due to the influencing factor of social sustainability is complicated.
Sustainability and long-term economic creation are closely linked. And our economic activities are indeed based on the ecological and social sustainability. Government and enterprises should take responsibility of sustainability challenges capitalism facing today, namely financial crises, environmental pollution and social problems caused by unsteady. All circles are expected to work hard and collaborate effectively to create a safe and sustainable capitalism which includes economic sustainability, but also ecological sustainability and social sustainability.
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