Edward Quince’s Wisdom Bites: The Totalitarian Trap—When Capitalism Loses Its Moral Compass

We constantly debate valuations, yield curves, and macroeconomic models, often forgetting the fundamental moral framework upon which a functioning economy must rest. Drawing on the lineage of past social teachings, a powerful warning emerges: capitalism without a moral foundation risks becoming a thinly disguised totalitarianism.

We see the symptoms of this moral decay in the trend toward "enshittification", where companies stop serving the customer to claw back value in the blind pursuit of profit, ultimately creating products of "dubious value". This heedless extraction is the financial expression of greed and unchecked desire.

The Takeaway: Markets need virtue, not just valuation. For investors and leaders alike, the lesson is to prioritize integrity and enduring value over fleeting gains. The pursuit of wealth should be defined by generosity, not greed. When leaders are driven by internal moral compasses rather than external appearances, they foster trust, which is the cornerstone of any lasting institution.