Friday, May 2, 2014
Two Recommended Books Explore The Damage Capitalism Causes
As the rich get richer, the middle class fades, and the poor are ruthlessly demonized by the rich, America is becoming that most evil of capitalist states—a place where a few uber-rich feast at the table while the rest of us struggle for scraps. In such a state, the elite few who possess nearly everything can purchase most anything, including the government and the media. Consequently the state is run for the benefit of the wealthy few at the expense of the many. Sociopaths in positions of power in the corporate and political worlds partner to form a sinister alliance. Privatization of all functions of government and deregulation of business practices become the rallying cries. As Mussolini declared, “Fascism should rightly be called coporatism, as it is the merger of corporate and government power.”
Republicans and their billionaire donors are trying mightily to make America this kind of state today. In this model, capitalism becomes more than free enterprise; it is the iron wall separating the ultra wealthy from the rest of us. It is the means by which stark income inequality can become permanent.
Two books I recommend reinforce this notion. Thomas Piketty’s “Capitalism In The Twenty-First Century” uses economic numbers to make an scientific case for the destructiveness of the current version of American capitalism. The means and opportunities by which the common person can access middle class status are being cut off, intentionally and rigorously, by the 1% who control 55-60% of all the wealth of the country. And this “socioeconomic gulf” is widening.
Likewise, Naomi Klein's book Disaster Capitalism warns of the evils of capitalism in the 21st century. She argues that deregulation has been extremely profitable for those at the top but something of a disaster for those at the bottom.
No surprise there, but Klein does imply that there is more than simple economics at work. Governments in league with corporations around the globe have employed something called the “shock system.” This system uses crises or calamities to pass laws that implement destructive capitalist policies. She cites examples from Asia, Latin America, and Russia, but the same could be said for our own 9/11 catastrophe that led to the unwarranted invasion of Iraq. The greed and corruption that followed was unprecedented. War profiteers and contractors got rich, and the commoner was left to ponder how his pockets got picked. Same with the Wall Street meltdown and bailout in 2008. It nearly destroyed our economy, but in the end the taxpayer funded billionaires who put another one over on us.
Klein is quoted in the latest edition of OpEd News as saying, “If we want to understand how this system has swept the globe from Latin America to Russia to this country, we need to understand the incredible ‘utility of crisis’ to this project, because the great leaps forward for this project have taken place in the midst of and during the immediate aftermath of some kind of a shock. The extreme cases that I discuss in the book are wars, terrorist attacks, natural disasters...the most common shocks that have created the context for pushing through these very unpopular policies in a way that economists often call economic shock therapy. The first shock is the economic crisis; the second shock is the economic shock therapy.”