As previously argued, the system of capitalism has captured (or is it co-opted) the democratic system of governance. If capitalism was inherently aligned with democratic principles then this may not be such a bad thing. However capitalism is not only antithetical to democratic governance, the former rests on ‘it being all for me’ and the latter ‘We the people’ but it is destructive to life it self as evidenced by global warming its most far-reaching effect. Unavoidably there will be hell to pay but not by everyone, at least in the short term.
However, Adam Smith, the father of capitalism, said in The Wealth of Nations, “in order to bring up a family the labour of the husband and wife together must even in the lowest species of common labour, be able to earn something more than what is precisely necessary for their own maintenance” and correspondingly spoke against the rentier class whose income he cast as unearned. According to Michael Hudson (author of Killing the Host) the original meaning of ‘free market’ was that of being free from exploitation (particularly by the rentier class), and not as the term is applied today by corporatist to mean free of regulation to do as one desires. So is it the system or the person? Continue reading
The only thing constant in life is change—Heraclitus. With change being constant in life, change is not avoidable through life.
With this in mind, denying (the need for) change, is denying life. Refusing to deal with it in the present is refusing to be life affirming in the present. This way of being doesn’t stop change from arising—given its constancy—it only ensures having to deal with it in its extreme later. Continue reading
In the article Three Things to Know to Hold Wells Fargo Accountable the author Lynn Parramore (Senior Research Analyst at Institute of New Economic Thinking) relays what William Lazonick (Professor of Economics, University of Massachusetts Lowell) identified as the three things we need to know: 1) American businesses have become stock manipulation machines; 2) focusing on short-term stock prices leads to corruption; and 3) punishment means little until executive pay is understood. The first essentially speaks to the profit maximizing intent of business and its executives and the second to the importance of it happening now if not sooner while the third is that the entire scheme is ultimately profitable because of the enormous size of the gains. So now that we know these things, what are we to do about it? Continue reading
The authors of a recent HBR article, Wells Fargo and the Slippery Slope of Sales Incentives, provided the answer “to meet sales quotas and earn incentives” to the question “why they (they being the lower level employees of Wells Fargo) did this in the first place.” The “this” being unethical if not illegally selling and charging customers for services they did not need or request. It seems that the perspective here is that the employees where at fault, after all they are the ones who acted fraudulently! Continue reading
Globalization has delivered, as it was intended, for the 1%. Globalization is not so much a paradigm, as some frame it, as it is a strategy of corporatist. It has preserved the gains of capitalism’s elite upper class by affording worldwide exploitation and extraction. Continue reading
Whether as a symptom of or as a commentary about the state of affairs of the U.S. economy we hear many (pundits especially) say the middle class is declining… if not disappearing. A growing number of people the state of affairs is quite stormy as they are finding it harder and harder to stay above water, yet for a select few who are smoothly sailing along it has never been better. Continue reading
In a December 3rd Harvard Business Review article (Rescuing Capitalism from Itself) Henry Mintzberg noted “since 1989, the United States has experienced some alarming changes, for example the massive infiltration of corporate money into public elections, disquieting levels of corruption in business, rising income disparities, and the decline, of all things in this country, of social mobility.”
How have these alarming changes come about? Are these the result of outside forces or are they the result of the economic system itself? Continue reading