Dewey's ideology of capitalism being involved in art and humanity is deeply rooted in what we, as humans, want. We are, especially with the Industrial Revolution of Dewey's age, consumers and want extravagance. Capitalism allows us for us to not be controlled in how the economy works. Thus, when one buys a piece of art, there is no control over the selling of it or the price of it. I think Dewey is referring to how art and literature are sold in reference to the rich person buying art versus the poor person buying a piece of art. Rich people have the luxury of buying art while poor people need to focus on more "practical" objects or pursuits. Dewey argues that, though art is important for all human beings, only certain, rich individuals can afford.
As for the human psyche, this ideology makes many people think that art is superfluous and not entirely necessary, especially the vast majority of society. Many people will say that art and literature are not important to our continued existence but imagine a world without art, music, literature, or film. What a dull world! It almost seems like a world without a way to manifest our emotions into something physical which, as physical beings we seem to do quite a bit. We do have a spiritual side (or some of us do) which we tap in to, but sometimes we forget and must revert to our own physicality and we need the manifest emotions in objects. Why do you think certain images scare us or make us happy? They are loaded with innate emotions which humans can understand upon seeing them.
A solution is impossible. Human beings battle and quarrel with each other far too much in order for any agreement of the value of art in the world. It would not work to simply make art free to everyone--artists would be upset and would not be able to make a living, though making end's meet with art is very precarious anyway. To get everyone to agree is simply illogical.
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