“The Bear Market Economics Phenomenon” is an observation of Political Economics. Wall Street Admits: ‘We Got Rich Off the Backs of Workers’ thus creating the Bear Market. The Bear Market is America's default war.
The ethic of Wall Street is the ethic of celebrity. It is fused into one bizarre, perverted belief system and it has banished the possibility of the country returning to a reality-based world or avoiding internal collapse. A society that cannot distinguish reality from illusion dies.
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Glossary of Major Distortions Comprising False Equations and Unchallenged Assertions
BUILD YOUR OWN LIST!
(NOTE: This essay is a revised version of the
original first published in the fall of 1982 in the premiere edition of
Cyrano's Journal, America's First Radical Media Review. )
By Patrice Greanville
________________________________________
Capitalism is preferentially identified by
its euphemisms: "Free Enterprise," "market system," "private
enterprise." "the American Way," etc. Overt and pervasive partisanship
in support of capitalism is not regarded by the American media as an
ideological bias negating professional "objectivity" but rather
comparable to the serene acceptance of natural laws.
________________________________________
1 Capitalism = human nature
(image by s.fazekas.collages)
This propaganda equation is one of the oldest
and most effective ideological weapons utilized in defense of
capitalism. It pays off handsomely in a number of important ways. First,
if capitalism is congruent with "human nature," then the capitalist
system must be the most "natural" and "logical" form of social
organization, as people will have a built-in tendency to observe its
basic rules. Second, "human nature," as defined in bourgeois terms
(which the press of course follows) is characterized by two significant
traits: immutability and unalterable egoism.
The first "fact" automatically discourages most
efforts at seriously reforming, let alone revolutionizing, society. Why
should anyone bother if in the end the stubborn intractability of human
nature will render all schemes for change and improvement of social
conditions worthless and utopian? It's evident that when sufficient
numbers of people are made to believe that an eternal, immutable and
invincible "human nature" will time and again scuttle the best-laid
plans and the costliest sacrifices for change, then most threats to the status quo will be defanged at the outset.
The second "fact," addressing the supposed
individualistic nature of people, provides a convenient justification
for the harsh, dog-eat-dog conditions that prevail under the so-called
free-enterprise system. In this vision, all human motivation is supposed
to flow from the desire for pecuniary gain and self-aggrandisement.
Individuals are perceived uni-dimensionally as simple atoms of
unrelenting hedonism, constantly pursuing the calculus of profit and
loss, pain and pleasure, as they irrepressibly "maximize" their options
to fulfill the dictates of hopelessly greedy natures. This is the fabled
"homo economicus" of free market literature; the heroic "rugged
individualist" so dear to conservatives, and supposedly the creature on
which all human progress and wealth depend. But why do the media--and
especially the wilier corporate apologists-- embrace this tack with so
much fervor? As suggested above, the very possibility of changing things
is a highly contested ideological area. Radicals argue that society can
and should be drastically changed. Conservatives (and the media, which
incorporates the mildly reformist liberal viewpoint) contend that
nothing basic can or should be changed because our behavior is rooted in
an unchanging human nature true for all epochs, systems, and states of
human evolution, and, besides, the system is quite sound as it is.
History, however, when properly read, is not very kind to conservative
social science. As economists E.K. Hunt and Howard Sherman have pointed
out, "human nature" seems quite adept at changing to reflect each new
set of prevailing social circumstances.
Thus, "it's no coincidence that the dominant
view or ideology under slavery supports slavery; that under serfdom [it]
supports serfdom; and that under capitalism [it] supports capitalism.
(...) Since our ideology is determined by our social environment,
radical economists contend that a change in our socioeconomic structure
will eventually change the dominant ideology. Before the Civil War most
Southerners (including their social scientists and religious leaders)
believed firmly that slavery, an essentially pre-capitalist, agricultural system,
was natural and good; but after 100 years of dominance by capitalist
socioeconomic institutions, most Southerners (including their social
scientists and religious ministers) now declare that capitalism is
"natural and good". So the dominant ideas of any epoch are not
determined by "human nature" but by socioeconomic relations and can be
changed by changes in these underlying relationships. There is thus hope
for a completely new and better society with new and better views by
most people." (F.K. Hunt and Howard J. Sherman, Economics, Harper & Row, 1978, p. xxviii.)
Further, if "human nature" is inherently greedy,
competitive and egoist, how do we explain altruism, sharing,
selflessness and social cooperation, which can be readily observed to
this day in many human institutions and societies throughout the world?
It should be borne in mind that class-divided societies and private
property made their appearance barely 10,000 years ago, roughly
congruent with the rise of agriculture, food surpluses, sedentarism and
animal-domestication, while the bulk of our time on earth as a species
has been spent under tribal or primitive communitarianism which stressed
familial bonds and a sharing of the commonwealth.
Question for our pro-capitalist theoreticians: Did native Americans have a human nature?
_____________________________
2 Capitalism = Americanness, loyalty to the United States, "the American Way of Life," etc .
This is the second major fraudulent equation in the
conservative arsenal, and one that, as its predecessor, has been
deliberately injected into the American political consciousness by the
system's mind managers. Noam Chomsky, Michael Parenti, among other
leading political scientists, have amply documented that such notions do
not materialize out of thin air, that they are deliberately
manufactured.
Great political benefits can be reaped from this sleazy piece of political legerdemain.
For by successfully equating loyalty to capitalism with loyalty to the
motherland, the ruling orders can more easily whip up support and
legitimacy for policies which chiefly safeguard their interests.
The ploy has been particularly effective
in the area of foreign policy (see below) where the global interests of
American business and the native plutocracy have been sold to the public
as those of the nation.
This has often served to silence and isolate critics,
who have been thus conveniently smeared with the brush of disloyalty,
suspicion or even treason. In extreme cases, homespun dissidents have
been carted away under charges of "sedition," "intent to subvert the
political system of the United States,'' and similarly dubious statutes.
There is little doubt that the American ruling class has carried the
art of mass deception to truly unprecedented heights. No other western
nation would have the audacity of requiring loyalty to capitalism--however
camouflaged--as a prerequisite for good citizenship. Only in a nation
where political illiteracy is high, and kept that way artificially by
the powers that be, can such a fraud be propagated without too much
challenge. Indeed, why should a historically transient system such as capitalism be equated with the more enduring essence of the nation, itself an extraordinarily elusive concept?
Questions for capitalism's apologists:
Will Americans be less "American" it they choose for themselves another
social system? For that matter, were the Russians certifiably less
"Russian" after their October Revolution? Did the French revolution
deny the French some of their precious "Frenchiness"? Are pro-Castro
Cubans demonstrably "less" Cuban than those living in exile?
___________________________
3 "Capitalism and economic freedom are inseparable from political
freedom and democracy, indeed their historical guarantors."
This claim, so readily bandied about by the
media and capitalism's apologists, can also be shown to be a sham.
First, as the tragic situation in the Third World illustrates,
capitalism simply thrives in many lands where democracy and the most
elementary human and labor rights have been ruthlessly stamped out. In
fact, in country after country where human rights have been brutally liquidatedprivate investment is on the rise,
and so is the support of' the American government. The murderous
repression of labor leaders, peasants, students, priests and anyone
foolhardy enough to speak for the disenfranchised appears to be
necessary to "improve the investment climate," as it is clinically put
by our diplomats, journalists and peripatetic businessmen. What is the
reality admitted even in the American media? On December 1979, Juan de
Onis, the New York Times correspondent in Buenos Aires filed the following report under this headline:
"ARGENTINE POLICIES PLEASE U.S.
BUSINESS. Regime, Under fire for Repression, Is Acclaimed by Chamber of
Commerce for Restoring Law and Order."
The piece, a rare occurrence in the New York Times,
goes on to explain that, "(A)s in Iran under the Shah, American
business generally supports the authoritarian military regime in
Argentina, which has violently repressed leftists and welcomed foreign
investors." Glossing over the thorny question of why Argentina's
conditions give rise to civilian sectors desperate enough to back up
armed insurrection against the Army, a nearly suicidal choice in almost
any country, de Onis proceeds to inform the reader that, "David
Rockefeller, the banker, visited Argentina recently to give his support
to the program of the Minister of the Economy, Jose Alfredo Martinez de
Hoz. In the closing paragraphs we find that "United States investors are
not deterred by the controversv over human rights. The Chamber of
Commerce, led by Arthur Perry, a mining promoter, and Stanley Brons, a
lawyer specializing in investment law, has conducted a campaign designed
to emphasize achievements in law and order by the military regime,
which crushed an armed subversive movement of left-wing Peronists and Marxists.
In the Chamber's view, publicity given to thousands of cases of people
who disappeared after being arrested or kidnapped by security forces is
part of an international campaign to weaken a Government that is doing
what they believe is best for Argentina."
We have used italics to underscore the totally
unsympathetic and incompassionate manner in which de Onis describes the
military's victims. Is it an accident that he touches several bases
likely to elicit a negative reaction in the thoroughly conditioned
American reader? "Subversive," "left-wing," "Marxist," "armed
insurrection," these are not exactly endearing terms in the American
lexicon, despite the fact that every fourth of July the American nation
loudly celebrates its own "armed insurrection." When reinforced by a
total lack of historical context, as it happens in this piece, the
effect can only be to lead the reader to unwarranted assumptions. Here,
the probable thought is: "They (the guerrillas) just got what they
deserved." This doesn't hurt the image of the Argentinian junta, but it
is a complete falsification and oversimplification of the hard and
complex Argentinian struggle.
But what happened to the vaunted
"inseparability" of economic freedom and political freedom? The fact is
it never existed. "Economic freedom" has been sold in the U.S. as
"inseparable from" and "indispensable to" political freedom and
democracy because in that manner big business can better protect itself
from the popular opinion. This is a high-handed lie worthy of Goebbels.
"Economic freedom" is merely a felicitous euphemism of modern coinage
for the market freedom of entrepreneurs, speculators and big property
owners to do as they please, while the state piously withdraws to the
minimalist function of' "maintaining order, protecting private property,
and enforcing contracts," which is quite fine as far its the "haves"
are concerned.
"Economic freedom " and "political freedom"--at
least in the historical epoch of capitalism--are neither inseparable nor
indispensable to each other. Indeed, left to their own devices, they tend to move in profoundly antithetical directions.
Real political and economic democracy represents a threat to
concentrated economic and political power; the interests of the average
working citizen simply do not jibe with those of the average oligarch.
No amount of' propaganda can deny that basic truth.
____________________________
4 "Capitalism is the most efficient, rational, and productive system of economic organization.''
The immense superiority of the free market over
socialist planning is simply taken for granted by the American media.
Socialist countries are routinely depicted as economically backward,
problem-ridden, and filled with dour-faced citizens eager to defect to
the marvelous West. Images of consumer penury are frequently trotted
out, while the corresponding historical contexts, which go a long way to explain these scarcities, are carefully expunged.
Who hasn't seen photos of barren socialist stores, their empty shelves
an eloquent testimony to that system's putative incapacity to "deliver
the goods"'?
Comparisons between capitalism and socialism
are by definition a complex and slippery matter, informed to say the
least, by divergent values. It is therefore not surprising to find that
the topic presents rich opportunities for propagandistic manipulation.
The following parameters require attention. For example, the
"traditional" failure of Soviet agriculture and Russia's desire for
western technology serve here as prima facie proof of
socialism's unreliable and disappointing performance. Yet several
factors are routinely left out or insufficiently noted. Take geography,
for instance. Russia is three times the size of the continental U.S.,
but its topsoil is of much inferior quality, and the arable land
scarcely one-third the size of America's, a situation compounded by far
less mechanization than in the U.S., the result of a far less mature
industrial base, and frequent dislocations caused by war and isolation.
These circumstances are apparently not worthy
of mention when shouting about the "failure of communist agriculture."
(What about the horrendous failure of agriculture in the underdeveloped
capitalist countries?) Then there are grave omissions concerning
history. As the capitalist press burrows deep to unearth every possible
problem--real or imagined--afflicting the new nations, they
systematically fail to mention the incredible burden of poverty and
backwardness ("underdevelopment") which the new regimes inherited from
the deposed old order--an unholy mixture of superexploitative
capitalism, feudalism and colonialism supported to the bitter end by
American power.
Further, it is rarely mentioned that the very
real hostility of the encircling feudal-capitalist powers has often
meant tremendous internal dislocations in the countries attempting to
construct socialism, even mildly progressive structures (Cf. Guatemala,
1954-5; Chile, 1973, El Salvador in the 1970s/80s, etc.). Russia herself
provides the classical example. By mid-1918, less than a year after the
seizure of power by the revolutionists, it was evident that an alliance
between the major western powers and the native whiteguard
counter-revolutionaries was seeking ways to overthrow the new regime.
Eventually, expeditionary forces from Great
Britain, France, Japan, the U.S., and later Poland, made their way to
Russian shores, and without even bothering to declare war, proceeded to
intervene in that country's civil war. American troops stayed on in
Vladivostok until 1923, and the U. S. government refused diplomatic
recognition until 1933, almost a decade after the rest of the other
western powers had come to terms with the new reality. Cuba and
Nicaragua provide more recent examples of all-out capitalist hostility
and strategic economic and political warfare. The former has been the
target of well-documented maneuvers to strangle its economy including a
still-standing blockade; overt attempts at overthrow through military
intervention and constant harassment by CIA-financed
counter-revolutionary bands in and outside the country.
This policy against Cuba--the product not only
of American inveterate anti-communist reflexes, but of allowing US
foreign policy to be hijacked by a Frankenstein of their own creation,
the rabidly reactionary Cuban exile lobby, has resulted in extraordinary
dislocations in the Cuban economy, including a huge amount of money and
manpower diverted to defense, serious problems in the healthy
development of critical institutions, and a rather problematic
dependence on the Soviet Union for sheer survival. For her part,
Sandinista Nicaragua is confronted with similarly grave dislocations as
the U.S. and its corrupt allies in the region openly threaten
"destabilization,'' while waging internal sabotage and even open war to
keep her and the rest of Central America in the imperial fold. As usual,
Nicaragua's example might spread. It should be noted that capitalism
itself never had to confront comparable enemies during its gradual
development. First, because in its infancy technological capabilities
did not permit rapid and devastating interventions by the feudal powers.
Second, because the values of Capitalism were not, after all, so
dramatically different from the ancient regime's, and hence did not require the mammoth social and personal transformations necessitated by the socialist revolutions.
Feudalism and capitalism thought private
property and its accompanying gross class and economic inequalities
''normal" and just, even though the justifications and the rhetoric
differed at points. Both held surprisingly similar visions of human
nature, philosophy, the march of history and other subjects. That is
why--among other things--bourgeois revolutions failed to enfranchise all
citizens, failed to liquidate the social roots of injustice. Moreover,
capitalism took several centuries to reach the stage of institutional
maturity where distinctly progressive fruits could be observed, and the
capitalist record is still quite contradictory in many regions of the
world where the economy is continually buffeted by recessions, high
inflation, corruption and high unemployment. In fact, the U.S. itself,
the citadel of world capitalism, is also a land of pervasive crime and
corruption; of huge inequalities in economic and political power, (where
poverty had to be "rediscovered," however grudgingly, in the 1960s),
and where tens of millions lack essentiall medical insurance, and where,
on any given day, up to 18% of the population spend their lifetimes
struggling against under- employment and unemployement, not to mention
job and social insecurity in older age.
Of course, these flaws, having been long ago
imputed to the "inevitable" order of things do not provoke the kind of
furor reserved for socialist construction. In the midst of all the chaos
and complexities involved in a thorough overhauling of social
institutions, constantly besieged by enemies within and without, these
hitherto backward countries are supposed to produce overnight perfect
societies, with the kinds of economic goods and political graces that
would satisfy the most exquisite sensibilities of critics in the
capitalist metropolises. The media are thus happy to compare the market
system performance with the harsh conditions of the past, or with that
of half-asphyxiated socialist models--both of which, as in a game of
crooked crapshoot, guarantee a flattering outcome. But what they will not do is to measure the US economy, for example, against its own potential under a much more egalitarian distribution of socioeconomic power.
4A. Capitalism's actual performance in the Third World.
BUT, even if we assume for a moment that all is
well in the industrialized capitalist core (the U.S., Japan Western
Europe, where unemployment and underemployment continue to defy
solution), how do we explain the fact that the so-called Third
World--the capitalist "periphery"--remains perversely bogged down in
massive poverty, despair and political repression? Is it not capitalist
enough? In reality, a reality the media carefully avoid or deny, this
sorry state of affairs flows directly from capitalism's inherent nature
as a profoundly inequitable, class-divided system in which most power
and wealth are hoarded at the top.
Perhaps inevitably, the same class division
that afflicts the capitalist nation pervades the society of capitalist
nations. The result is two sets of nations: the rich and the poor, with
the latter greatly impeded in their development by lack of technology
and political, cultural, and economic dependency or "colonization," now
assured by a "neocolonial" relationship that perpetuates unfair terms of
trade between the two spheres. As the American media look away from
this embarrasing picture, two stratagems are used to cushion whatever
bad p.r. might manage to bubble up to the surface.
First--and simplest--is to avert the eyes from
anything genuinely positive and encouraging taking place in the
socialist world. Thus few Americans are aware that Cuba--despite
unrelenting pressure from the world's pre-eminent superpower--has
managed to stamp out widespread illiteracy and malnutrition; childhood
and adult prostitution (although these days, due to prolonged scarcities
induced by the blockade, some women choose to prostitute themselves to
complement their normal income. --eds), high infant mortality
(it is ahead of the U.S.), rampant political corruption and repression,
and dramatically reduced all forms of crime--from petty hooliganism and
thievery to the organized variety, while offering its citizens
guaranteed employment, free medical care and education at all levels,
and the best income and wealth distribution in the hemisphere, certified
by the OAS and UNO, not exactly socialists shills.
These impressive facts are simply not
sufficiently "newsworthy" to most American editors. The second trick in
the media book is to concentrate attention on GNP growth and the
adoption of capitalist models of development (about which more later),
trotting out, from time to time, the "economic miracles" that have
supposedly taken place in Brazil, South Korea, Singapore, Taiwan, Hong
Kong, and other capitalist showcases. Leaving aside for a moment the
crucial fact that these "success stories" frequently have a pretty
shabby underside of political repression and superexploitation, it
should be noted that the bottom line is a notoriously inadequate
indicator of economic conditions for the majority.
GNP figures, as normally peddled by American journalists, rarely shed light on a crucial aspect of economic performance: the
manner in which the national income and wealth are distributed among
different sectors of the population, and whether or not the goods and
services produced are allocated to internal consumption or export.
As it turns out, while Brazil, for example, has
indeed expanded its GNP, it has also concentrated a greater portion of
the national wealth among a tiny minority at the top and most of its
output is earmarked for exportation. The result: a larger GNP coupled
with greater unemployment and misery among the masses, a fact
amply documented by a recent UNO report on the Southern Cone countries
(Chile, Brazil, Argentina, Uruguay), and a variety of reports published
by none other than the Catholic Church's office of social affairs.
4B. The best possible product?
While the system's propagandists argue that the
market system can and will give the consumer as good a product as the
state of the art will allow, an essential contradiction of capitalist
production is niftily overlooked. The consumers want, by and large, the
best, longer-lasting product their money can buy. For instance, they may
want to see razor blades capable of lasting 1,000 shaves or more; or
cars which do not begin to self-destruct before they are fully paid off.
The catch-22 is that the capitalist producer has something else in
mind. The capitalist is in business not to meet society's needs and
maximize the "end use" of his products but simply to make as much money
as possible. As the CEO of US Steel once proclaimed to an approving
audience of shareholders, "We're not in the business of making steel;
we're in the business of making profits." (Since these frank words were
spoken, US Steel has gone on to morph itself into an entirely different
kind of company, with steel now only a relatively minor part of the
portfolio of assets, all under the name of a new conglomerate rubric,
the USX corporation. "In October 2001, USX Corporation shareholders
voted to adopt a plan of reorganization. The plan resulted in the
tax-free spin-off of the steel and steel-related businesses of USX into a
freestanding, publicly traded company known as United States Steel
Corporation -- the name of the corporation when it was established a
century earlier. The remaining energy businesses of USX became Marathon
Oil Corporation."--eds.)
Thus, in his pursuit of maximum profits, the
businessman will promote, as much as circumstances will permit (i. e.,
consumer knowledge, brand loyalty, competition, government oversight) a
product that will insure the highest possible frequency of purchase. The two sides have therefore incompatible agendas. In a capitalist economy, however, the final decision of what to produce, and how,
is left to the commercial corporation. Hence, under monopoly
conditions, the "better," "longer-lasting" features of products will be
more often than not quietly scuttled. Indeed, as GM itself helped
pioneer, at times it is necessary to inject "built-in" obsolescence in
order to energize demand. It follows that if the capitalists, as a
class, are not too sanguine about the introduction of genuinely better,
longer-lasting products, they will not be too eager either to finance or
introduce technologies that make these very products possible. (The
world's costly addiction to petroleum is a prominent example of this,
but far from the only one. Humankind could have moved to
pocket-friendly, environment-friendly non-petroleum sources of energy a
long time ago but the industry's clout has blocked any real moves in
that direction.)
The upshot is a very erratic rate of
technological innovation and one which is once again left entirely to
the whims of profit maximization instead of social and ecological
benefit.
4C. Automation vs. jobs
This is a hugely important topic, and one that
holds major clues to the supposed "riddle" of job creation and
destruction, in other words, the actual level of employment we find in
any society.
Despite the social and historical importance of
this topic, the formidable American media continue to cover it for the
most part inadequately. The typical treatment is an article that while
dwelling on the various aspects that surround the introduction of a new,
labor-saving technology, including the resistance and suspicion so
often manifested by workers, fails miserably to make the essential
connection: that automation need only cause unemployment and social
strife under capitalism.
We should recall that machines were invented by
humanity for three essential reasons: to liberate mankind from
unnecessary, back-breaking toil; to increase social leisure; and to
increase the quality and quantity of production (thus permitting
improved social consumption). As a rule, however, the introduction of
labor-saving devices under capitalism has curious, it not utterly
perverse, repercussions.
Consider a new machine destined for shoe-manufacturing. Working with
the old technology and a workforce of 100, Super-Capitalist Shoes, Inc.
turns out 10,000 pairs of shoes per month. Now enter a new generation of
machines. The firm in our example decides to purchase two new totally
automatic machines that will increase production to 100,000 pairs, a
tenfold increase in output, but will utilize only 60 workers, thereby
laying off 40% of its labor force. Here we have a typical capitalist
"contradiction." On the one hand we have a much larger output and higher
incomes for the very few, the social pyramid apex, chiefly connected
with the private ownership and administration of the business enterprise
(and the machines). On the other we have unemployment and lower
consumption for the many, chiefly the workers' side. This is the result
of social relations not some economic law. Such social relations,
enforced by the state and its coercive apparatus, create therefore an
incurable process of inequality and poverty for the majority issuing
from the very core of the sociopolitical engine. Naturally, if the
fruits of higher productivity were distributed more fairly, ordinary
citizens would have a great deal more of leisure time to develop their
other personal dimensions. Under capitalist relations, with the
capitalists in the saddle, there is no real leisure time for the majority, unless we are prepared to call unemployment a form of holiday.
For society as a whole the contradiction may bode
equally ill. For as automation spreads through the economy, more and
more workers will be knocked out of the job market permanently or
semi-permanently, depressing consumption precisely as more
goods are being turned out! Thus, under capitalism, a fast rate of
technological change and aggressive investment in labor-saving machines
may actually help trigger recessions.
Question for capitalist purists:
What would the corporate overseers do without socialist ideas such as
unemployment insurance, federal retraining programs, income maintenance
programs and other "built-in economic stabilizers?") And by the way,
keep this little fact in mind: No amount of retraining will guarantee a
worker a job if the rate of job creation starts falling too far behind
population growth.
__________________________
4D. Whose fruit? Capitalism's or modern industrialism's?
The rise of the capitalist mode of production is
intimately linked to the spread of the industrial revolution and the
modern methods of socialized production , but the time may
have come to try to separate the fruits of each. Capitalism's defenders
are understandably eager to credit capitalism as the major, it not
exclusive reason for today's affluence, such as it exists, wherever it
may be found. Accordingly they have fetishistically invested private
property with magic qualities it doesn't possess. Their position may be
boiled down to the notion that society's optimal use of resources can
only be secured through the subjection of science and industrialism to
the regime of private property. In their eyes, entrepreneurial
self-seeking is the best engine for invention, exertion, and abundance.
While this may be true of some very specific cases, it is hardly true
with respect to the modern mega-corporation, typical of mature
capitalism, wherein private ownership is retained by a relatively small
circle of speculators or absentee owners, several generations removed
from the actual day to day management and production of the firm. In
fact, it is obvious that a modern factory or a plot of land can be put
to work to maximum benefit under either private or collective ownership,
as long as the proper inputs and techniques are observed . (Including the proper ethical and ecological rules to direct industrialism, whose destructive power is enormous.)
__________________
4E. Selling us the rationality and efficiency of "Free Enterprise"
The American media have never given up singing
the praises of the market system's vaunted "efficiency," its "democratic
nature" (due, it is argued, to the notion of "consumer sovereignty" or
"marketplace balloting") and, above all, rationality. Despite an economy
in which corporate giants such as GM, Ford, U.S. Steel, prominent banks
and other Fortune 500 firms routinely post losses totalling billions of
dollars (Chrysler necessitated a huge government bailout that continues
to this date), the carefully-cultivated myth of private enterprise
efficiency and superiority over public enterprise dies hard.
Three areas must be de-emphasized to accomplish
this feat. First, the eyes must be averted from capitalism's chronic
underemployment, mis employment, and unemployment of human and
capital resources (workers, land, machines, etc.) as this represents a
total waste to society estimated by even mainstream economists at
hundreds of billions of dollars per year, not to mention the
unquantifiable suffering inflicted on people who must get by with
totally inadequate incomes.
Second, the decision to allow the profit motive
to control society's production choices in quality, quantity and
composition of output introduces further waste through the squandering
of resources in luxury, frivolous, or "unnecessary" goods; entire
categories of "throwaway" products designed ostensibly for consumer
convenience (i.e. cheap cameras); or simply questionable production
inherent in capitalism, such as, the paper spent every year on socially
useless [and environmentally deleterious] advertising campaigns, glossy
fashion magazines, catalogs, etc.
Third, there is a whole host of "social
inefficiencies" or "externalities" inherent in the operation of a
capitalist economy that go beyond the mere pollution of the air, land,
and waterways. Capitalism's selfish ethic and infamous rat race
literally pollute people's lives and decompose the social fabric which
ought to hold the community together. Indeed, the colossal crime, mental
health, and unemployment problems that plague the U.S. demand
substantial social outlays everywhere for their mere control, let alone
eradication. (Consider for a moment what the U.S. spends annually on
prisons, rehabilitation, psychiatric counselling, courts,
law-enforcement and welfare. These social costs, by the way, are counted
in the GNP as "positive" expenditures). In fact, with alienation and
mental dislocation running exceedingly high, the US easily outstrips all
other industrialized nations in the incidence of serial and mass
killings.
Such inherent social deformations cannot be
expected to run for long without some opposition. And it is precisely in
anticipation of such reaction by the public that the
capitalist-dominated state makes preparations to put out the fires well
in advance. Sometimes this takes the form of a beefed up police state,
as we see now in practically all "Western democracies," the 9/11 tragedy
having given the ruling orders everywhere the ideal pretext to build a
massive surveillance and repressive apparatus at the ready. And should
not that suffice to control popular disenchantment, or expressions of
real democracy, an even more brutal Frankenstein is already being
abetted in many areas of the empire, fascism.
The drift toward authoritarianism and plutocratic tyranny cannot
be arrested, only slowed down or momentarily interrupted given the
essentially undemocratic nature of the system. As I said in another
essay (Understanding American Capitalism) living with capitalism is like living with a sociopath in the room, a murderous maniac who bears constant watching.
Lastly we can argue that there is also a very
real, not merely metaphorical, waste of life--the average
worker-consumer's life, that is--as a result of deliberately shoddy
products, monopolistic prices, and built-in obsolescence, all of which force people to work two, three or more times than necessary for the same standard of living. This waste and relative overprice,
in addition to the already gross underpayment received by ordinary
citizens under capitalist social relations, whereby, by design, a
disproportionate piece of the pie goes to an ever shrinking minority at
the top of the social pyramid.
In the same essay mentioned above (Understanding American Capitalism)
I quoted my colleague, Dr Susan Rosenthal, who summed up the problem
of productivity's theft by the capitalists rather brilliantly:
By 2000, U.S. workers took half the time to
produce all the goods and services they produced in 1973. If the
benefits of this rise in productivity had been shared, most Americans
could be enjoying a four-hour work day, or a six-month work year, or
they could be taking off every other year from work with no loss of pay. (See, Globalization: Theirs or Ours?)
The lives and money wasted, the fear and
alienation, the sense of powerlessness and constant insecurity that
characterize a normal existence for a very large segment of the
population (have you ever come across one of those insurance ads
reminding you how vulnerable you are to this or that in America?)--these
are all hidden, unacknowledged, social taxes that we all pay for the
privilege of living under capitalism.
Media critic and former economist P. Greanville is The Greanville Post's founding editor (http://www.greanvillepost.com/).
He also serves as publisher for Cyrano's Journal Today. He has a lifelong interest in the triumph of justice and (more...)
The views expressed in this article are the sole responsibility of the author
and do not necessarily reflect those of this website or its editors.
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