Out of Balance; The New Roaring Twenties?

Nature teaches us balance. Nothing is wasted: one organism’s byproducts become another’s source of life. When predator populations grow too large, dwindling prey eventually reduces their numbers. In nature, the well-being of the whole community depends on the well-being of each individual, creating an inherent equilibrium.

Nature and capitalism operate by different rules. Nature tends toward balance, while capitalism pushes toward continual growth. Without moral limits, capitalism can become a self-reinforcing cycle in which wealth creates more wealth at an accelerating pace. In an unrestrained market, individual and corporate success are measured by growth, often without regard for broader social needs. Where scarcity in nature forces adjustment, scarcity in capitalism raises prices: if the Strait of Hormuz closes, oil becomes scarce and fuel costs rise.

In unregulated capital markets, pollution can become profitable for corporations while imposing costs on others. Resource exploitation may also exceed nature’s capacity to recover. Only human morality—expressed through cultural, legal, and ethical limits—can restrain capitalism and prevent the reckless exploitation of society and the natural world. Left unchecked, raw capitalism follows supply and demand while disregarding the common good.

The Great Depression was driven in large part by unregulated capitalism, unchecked market speculation, an underregulated banking system, and widening wealth inequality. Protectionism made matters worse: the Smoot-Hawley Tariff of 1930 triggered retaliatory tariffs around the world and helped bring the Roaring Twenties to an end. The depression lasted from 1929 to 1939, ending only as the United States mobilized for World War II.

Franklin D. Roosevelt introduced the First New Deal in 1933 and the Second New Deal in 1935. These landmark reforms created safeguards such as the FDIC to protect bank deposits, jobs through the Civilian Conservation Corps, Social Security as a safety net for older adults and people with disabilities, and the National Labor Relations Act to protect workers’ right to unionize. Together, they placed moral limits on unchecked capitalism.

Today, we again seem to be living through a new “Roaring Twenties,” marked by extreme wealth inequality, corporate greed, and renewed efforts to deregulate capitalism. Given our president’s character, it is hard to trust that morality guides his decisions. He has revived protectionist tariffs reminiscent of Herbert Hoover’s Smoot-Hawley Tariff, which helped cut global trade by two-thirds. By repealing Dodd-Frank, he removed financial guardrails and increased the risk of another crisis. He has also entered an unwinnable war with Iran, pursued a questionable “deal” to end it, and advanced corruption “like the world has never seen.”

The morality of capitalism is a complex debate. Its defenders argue that free markets are moral because they rely on voluntary exchange and create prosperity. This form of largely unchecked capitalism, often called neoliberalism, emphasizes free markets, limited government intervention, and individual liberty. That argument might be more persuasive if the playing field were level and the system not rigged. Left alone, capitalism can reward selfishness, deepen inequality, and enable exploitation.

Evidence of a rigged system appears in the recent financial gains of Donald Trump and his immediate family. Don Jr.’s reported net worth has increased sixfold in the past year, from $50 million to $300 million, while Eric’s has risen tenfold, from $40 million to $400 million. Jared Kushner’s wealth is tied to a private equity firm backed by Middle Eastern sovereign wealth funds. Donald Trump’s own finances remain less clear, though many estimates suggest his net worth increased by $1.7 billion over the past year.

The stock market crash of the last century began on October 24, 1929—Black Thursday. October 24, 2029, falls on a Wednesday. Let’s hope history chooses a different color.