One of the first things Einstein makes clear is how economics is different from the physical sciences. For while the laws found in the different disciplines of physical science are not affected by outside influences, economics is. laws in economics are. Thus, in trying to find general patterns that explain how economics works, the task is much more difficult than what we see in the physical sciences contrary to the claims of some economists.
One of the outside factors that affects economies in the world is the historical fact that man has never gained control over his predatory nature. It is the conflicts from that nature that have played a primary role in determining many a nation's border as well as the narrative and its aftermath that results from conquering others. The endless competition that exists that exists in Capitalism can only magnify the predatory nature that is in each of us.
In addition, the values held by people in a given society in which an economic system works lies outside of science and thus outside the field of economics. Einstein is quite clear in stating that while science gives us means, it does not provide us with values.
But more important than the above, Einstein demonstrates how Capitalism puts a person at odds with one of his two major relationships. For man has a relationship with himself including those closest to him, and man has a relationship with the rest of society. And Capitalism makes that latter relationship complicated and conflicting. For while man sees that much of his success comes because of what society has provided both now and through history, Capitalism tells man that society is also a threat especially to what the individual has accumulated. And if Capitalism reinforces the idea that society is a threat to the individual, how will Capitalism limit the predatory nature in us?
It's not that Einstein regarded Socialism as being perfect. It is that magnifying the predatory nature as well as Capitalism's making people more defensive and insular leads to the well-off, successful owners who decide for themselves how much of their wealth they will share with both other stakeholders of their enterprises, who unknowingly become vulnerable and the rest whose vulnerability becomes more than apparent. In the meantime, wealthy owners get to play keeping up with their peers.
Though the individualist streak in Capitalism was not as apparent when Einstein wrote this pamphlet as it is now, Einstein is speaking to the present as much as he spoke to the past about moral issues. We should note that many who stress individualism at the expense of relating to all of society not only are afraid of sharing too much with society, they believe that it is their moral obligation to act out on their selfish interests. And thus Capitalism, especially today's neoliberalism, further alienates people from society.
At this point, I want to jump in to advocate what I think the solution is. Whether we use socialism or modify our capitalist economic system or find a different economic system, the real issue we must contend with is not the redistribution of wealth, it is the redistribution of power. At this point, we should note that those who are willing to share power and wealth with others are taking the first steps toward peace. Those who refuse to share power and wealth with others are taking the first steps toward making war.
Einstein does acknowledge that central planning of the economy does not necessarily make a socialist economic system. At this point, Marx would heartily agree because with him, the main concern regarded the question of who had more/less power.
Currently, we have two major political parties none of which are willing to share wealth and power. By resisting such sharing, those parties show our human predatory nature that seeks to identify, pounce on, and devour a weaker entity until no other group is left standing. And all that is because our nation's economy with its Free Market System has more influence on our other areas of life, such as Democracy, than vice-versa. And until that trend is reversed so that owners and workers are sharing power and engaging in collaboration for each other's benefit as well as their own, Whether we call that sharing and kind of collaboration Capitalism or Socialism or whatever else, matters not. That we look to share power and wealth with others and work for not just our own benefit, but for advancing the interests of others is the issue that could hold in check our predatory nature.
Though while some will mockingly say that hoping for the sharing of power and wealth and collaborating for the sake of others besides ourselves is not something that History teaches us to expect, there is another reality that rises on our horizon. To not hold our predatory nature in check while we become more powerful both economically and militarily is a sure path to self-destruction where not even the wealthy will be spared. Here, the French, Russian, and Spanish Revolutions should provide ample examples of what happens when the wealthy are overly represented while the rest are under represented or are ignored all together.
References
- https://www.goodreads.com/book/show/12007777-why-socialism
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