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‘Supercapitalism Threatens Democracy’ |
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Every day, we hear the mantra that where capitalism flourishes, democracy is sure to follow. But that is not necessarily the case, says former labor secretary Robert Reich, pointing to nondemocratic nations such as China and Singapore, which are moving full throttle toward capitalistic economies.
Rather, Reich argues, today’s highly competitive “supercapitalism” is endangering democracy by taking power out of the hands of ordinary citizens.
Reich says that over the past 30 years, global capitalism has developed into a turbocharged, Web-based system in which consumers and producers can access almost anything just about anywhere. But, he says, this intense competition generates negative social consequences:
There are social consequences that supercapitalism creates—whether it’s global warming, lower wages, unstable jobs or greater inequality—and we have to examine carefully who pays what cost. These results of supercapitalism require a response. We cannot depend on companies’ morality to change their ways.
Reich, a professor at the Goldman School of Public Policy at the University of California-Berkeley and labor secretary during the Clinton administration, spoke to some 150 activists and scholars at the Economic Policy Institute (EPI) last week as part of the Agenda for Shared Prosperity. The initiative includes a network of more than 50 progressive U.S. economists, policy analysts and academics sponsored by EPI to address the growing gap between America’s promise and its problems. (See video.)
In his new book, Supercapitalism: The Transformation of Business, Democracy and Everyday Life, Reich says the hypercompetitive environment of the global economy has shifted power in the marketplace away from us as citizens to us as consumers and investors. To keep up in this economy, companies must work harder to consistently maintain low prices to satisfy consumers while increasing profits to satisfy investors. Many achieve these competing goals by paying lower wages and barring unions in the workplace, he says.
So we should not be surprised about the growing gap between the rich and everybody else, Reich says. While the top 5 percent of the population has gained tremendous wealth in the past decade, the median household income is less now than it was in 2000, which means the other 95 percent of us are losing ground.
Meanwhile, the tools traditionally used to balance corporate power—fair taxation, well-funded public education, unions—have been weakened as supercapitalism has grown.
As a result, ordinary citizens are less protected than ever, and a balance no longer exists between profits and low prices and what’s good for the country.
To restore that balance, Reich says, we need to “do the hard work of writing regulations that make capitalism work and save capitalism from itself,” such as:
- Raising the top tax rate for the richest Americans and lowering it for the poor and middle class. The top rate today is only about one-sixth of what it was in the 1950s.
- Decreasing corporate power over politics by reforming campaign finance laws to create blind trusts for candidates, which would allow people to contribute money, but without the candidates knowing who gave or how much was given.
- Allowing taxpayers to check off part of their taxes to support interest groups of their choice.
EPI launched the Agenda for Shared Prosperity network this year, with the goal to compile issue papers on topics such as trade, retirement security and job creation to foster discussion and propose solutions in advance of the 2008 congressional and presidential elections.
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When are we going to start holding people accountable? This man is, in not insignificant part, responsible for the supercapitalism model - which is better termed the “Free” Trade model.
Americans must wake up and come to the realization that the best way to defeat a “Super Capitalistic” Economic System is to replace it with a “Super Democratic” Economic System,”Socialism”…
Reich offers no critique of American imperialism, or the MIlitary-Industrial Complex, which he helped as part of the reactionary Clinton administration. A far better analysis comes from author Naomi Klein in her new book, “The Shock Doctrine” about the Rise of Disaster Capitalism.
Does Reich propose the obvious solution, that we need Socialism? I doubt it.
See Democracy Now!
http://www.democracynow.org/article.pl?sid=07/09/17/1411235
Hillary has a health plan. Edwards has a better one. Listen to President Bush and his health plan at youtube. Then search “Swishy Bushy.”
Note. Hillary is inviting “Home Security Lobbyists” to a $1,000 luncheon today, September 18, 2007, in Washington, DC. Those that bundle $25,000 in ticket sales will have a special seat for one (1) hour in the committee hearings when addressing HOMELAND SECURITY ISSUES.
Want that kind of “sell out” from any President?
Super capitalism,bringing in cheap labor from other countries,selling out those who were born and raised here to increase profits and force Americans who caanot afford college to compete. Ask the people who are replacing your average American how much they paid for their higher education,preety much for free. Check it out. Slaves were made along time ago by virtually free labor so business could compete. This is why there are those plantation huge houses for some and shacksfor the rest.
Maybe it’s because of my age (66), maybe it’s because I watched a preview of the new Ken Burns series called War, I’m not sure why I drew this parallel:
If we cannot manufacture the parts to build the things we need, what happens if we get into a war and our sources are cut off - or, worse yet, what happens if we get into a war with those who now do our manufacturing?
It seems to me that if we don’t spend the next few years rebuilding this country and its capabilities, there won’t be a country left for us any more.
We need jobs, unions, industries, the works. That means we don’t need more of the Republicans or DLC Democrats (who only say they’re Democrats to get a vote).
If you never thought your vote mattered before, this is the time to change your mind. Reich worked for the DLC Dems, but that doesn’t mean he isn’t good enough to see the truth and warn us about it.
According to the article, Super Capitalism exploits the environment and creates class inequality by exploiting cheap labor from China and India. To me, Super Capitalism is a descendant of the slavery system which allows the capitalist class to build its wealth on the back of a poor and uneducated slave workforce. After the Civil War, slavery was outlawed. By the late Nineteenth Century, Super Capitalist was ready to exploit the free but cheap labor flocking into the United States, from troubled Europe. As a result of Karl Marx “Communist Manifesto” which predicted the victory of the working class (the Proletariat) after a long class conflict, the capitalist class decided to shake hands with Labor instead. This Labor-Management cooperation was responsible for the creation of the American Middle Class and the advance of American Democracy. By 1990, the Soviet Union collapsed, the Cold War was over, and the threat of Communism had disappeared. As a result, Super Capitalist felt free However, by 2001, terrorism emerged. It is an extreme form of opposition to globalization and to oppression. The terrorists are all Muslims from countries which have suffered decades of colonization, exploitation, hopelessness, and extreme poverty.
In conclusion, Super Capitalism is and has always been the natural enemy of Democracy. Only when its existence is threatened does it agree to give in its greed and ambition and work toward genuine cooperation and toward Democracy.