Capitalism is the best we have got. Yes, it has some issues, such as economic inequality and environmental degradation. It isn’t perfect but it is the best economic system we have come up with. What is it about capitalism that makes it better than alternatives like Communism or a dictatorship? Motivation. Each economic system has its own source of motivation. Economic motivation is the force that gets people out of bed in the morning to go to work, to contribute to the economy. It is the force that drives the economy forward.
In a dictatorship, the motivating force is avoiding being punished. If you don’t get up and go to work, you, and perhaps your family, maybe punished or killed. People do things because they want to avoid negative consequences. While perhaps less extreme, the motivation structure in Communism is similar. People go to work because they may not have a choice, or they don’t want the entire centralized economy to collapse.
In both cases, the motivation comes from wanting to avoid bad things happening. Going to work does not promise the possibility of good things, only the avoidance of bad things. This is what makes Capitalism different. The motivating force in Capitalism is the possibility of a better future. It is the American Dream. People go to work to acquire capital, which they can then use to improve their future. The possibility of good things drives capitalism.
This distinction between avoiding negative consequences vs seeking positive consequences is subtle but important. While it may result in similar actions, the motivation behind these actions is different. Not only is being motivated by the potential for positive consequences more enjoyable, history clearly demonstrates it is a much more powerful motivating force (as every example of Communism has failed miserably).
These two motivation structures, avoiding negative vs seeking positive, translate to our personal lives. Every day we have to have to do hard things. Hard things are activities which are not inherently pleasurable on their own. This may be going to work, exercising or cleaning the house. However, even though these activities may not be pleasurable, we still do them. What is motivating us to do hard things? Depending upon our mindset it can either be avoiding negative consequences or seeking positive consequences.
You often hear people say “I just need to get through this workout” or “I can’t wait for the weekend”. In these cases, people are doing hard things because they want to avoid the negative. They are working out not to become fit, but to prevent themselves from becoming too unfit. They aren’t going to work because they enjoy it, but because there will be negative repercussions if they do not. Having this mindset can make life feel like a constant battle. It is like one of those games where a character is running and the road is collapsing behind them. There is no finish line, only avoiding being swallowed up by the collapsing road.
However, we can also be motivated by the potential for good things. We can get up and go to the gym every morning because we know it will make us stronger and healthier. We can view going to work as an opportunity to learn new skills and solve problems that fulfill us. Both motivation structures may result in the same outcomes, but our mindset around our actions changes. This mindset shift can also apply to mundane tasks like cleaning the house. Instead of viewing cleaning the house as something that must be done to avoid disarray, it can be viewed as something that will create a space which is more enjoyable for you to be in.
Having a mindset that doing hard things is a way of seeking positive consequences is being driven by optimism. Rather than being driven by the fear of bad things happening, you are driven by the potential for good things to happen. You are optimistic about today and the future.
Not only is this simply a much more enjoyable attitude to have, but as Capitalism and Communism tell us it is also a much more powerful motivator. The person who is excited to go to the gym and train to become stronger is going to exercise more than the person who is exercising simply to avoid becoming unfit.
I believe being driven by optimism is a more enjoyable way to go through life. This mindset goes beyond just doing hard things. Simply viewing each day as an opportunity for something good to happen makes life more enjoyable. It is not always easy to have this mindset, but I believe it is a mindset worth having
— Mitch
Quote of the Week
What you do on your ordinary days determines what you can achieve on your extraordinary days. - James Clear