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05:18 AM, NOVEMBER 13, 2007
Blog Blog 
Lazy

This is a response to Ian Wooden’s posting http://www.rethos.com/news/view/309-Capitalism-and-Inequality-If-On...

Reclarifications: By “patience”, I mean the kind of patience a battered woman has when she sends her husband off to anger management therapy. I mean the kind of patience it takes to patch up a dilapidated house. All this while a nice guy and a lovely home call to you. No, sometimes patience isn’t the right approach. Will it take hard work and commitment to rehabilitate a violent husband or rebuild a crumbled house? Indeed. But you might as well invest that hard work and commitment in building a new home and getting a new man. You say, that takes more effort, I say more effort pushes us further away from capitalism in general – “why create a whole new system, when you have one to work with?” you ask. This is where my analogy fails…in economic systems and social attitudes you simply can’t “get a new house” one has to evolve from the other. But just as Capitalism grew from Feudalism, and Man arose from bacteria long ago, so a new system must emerge from the current. Getting a new house in economic terms, is creating an entirely different system, from the one we have now. Still why strive for such a radical change? Because capitalism and corporatism is an outdated, repressive economic and social model. It creates an unnecessary hierarchy, and disparity that is intolerable when we as society strive for equality, and self-management…i.e freedom. It may not be the people that are corrupt as much as the system.

Which gets to a clarification of the term “corruption.” The elite class is raised, pampered, groomed…socialized to care about certain things. Think of it this way. A rich person benefits from practices that hurt poor people. This is the worst case then to have the very people who have the resources, knowledge, and connections to actually mobilize and change systems benefit from systems that create disparity, isolation, deprivation and on and on. Consider the goals of a corporation – expand profits, protect shareholder investment…the corporate version of the Hippocratic oath – first lose no money. Short, sweet, laudable set of goals…right? Well, wage raises reduce profit..money lost. “In some cases, corporations will increase wages to attract the best and brightest, this competition creates a balance between pay cuts and raises” you might retort. In short, the effect is CEO’s get paid a shitload, and Janitors don’t get paid shit. Few rich people, many many poor people.. supply and demand says, poor people jobs won’t pay. Lots of hungry people willing to work for a little bit of food. In fact, this pool of hungry people is a corporate executive’s wet dream. Can you honestly think of a better scam than cranking out shoes for 5 dollars, then flipping them for 120. I sure as hell can’t. I think even crystal meth’s profit return is smaller. These poor people’s wages will be depressed for the shareholder’s benefit. Do you honestly think Disney will pay Haitian worker’s more when it can get away with a measly 2 dollars a day. That would be stock market suicide, and against the law because it knowingly devalues the shareholder’s stock. Now what kind of system fosters poverty this way? A corrupt one, all the while the employees carry on their duty feeling completely moral – one need not feel corrupt to act corruptly. “But the people won’t stand for this treatment and boycott the product.” Disney’s not going anywhere anytime soon. I’m sure you’re familiar with the consumer collective action problem that results in industry leader’s interest being more important to politician’s than consumers’. A problem exacerbated by the fact that Disney owns ABC, so ABC (who has the resources, knowledge, and connections to actually mobilize and change conditions) is highly unlikely to create a national awareness about the need for better working conditions for Haitians. Again, stock market suicide, and illegal.

How, then, are we supposed to rely on these institutions, who are practically bound by law to oppress and deceive, to be advocates of positive change. I also think it is a just a little disingenuous of you to imply that only powerful people can bring about change. Remember this, throughout history it has always been the disenfranchised, the trodden slice of society that has brought about revolutionary positive change. From the inception of our nation, to the abolishment of slavery, to secured labor rights, the weary have never failed to stand up in defiance of the powerful who benefit from their misery. Common sense tells us, people exploit others for an advantage, and upon gaining the advantage become more powerful and better at exploiting. Until the most exploitative group of people reach the top – that is, the few people that exploit all others, the class to which we cater to, and even aspire to join. It’s a form of social Darwinism. The great thing about society though, is it is a human construct, we can set the parameters for evolution. We can just stand up and say…those who exploit others will not survive, any institution that inherently causes exploitation, is fueled by ignorance and greed, will be dissolved. We can demand a system in which goods and services are provided in a way that leads to community betterment by inherently causing cooperation and progress. The structures await, nested within the capitalist world, just as the capitalist structures nested within the feudalist world – they await a social movement that will cultivate and focus them, that will allow them to grow and reshape our lives and planet.

For more on these structures, co-ops, go to http://www.zmag.org/content/showarticle.cfm?ItemID=14085 Also check out the Fair Trade Federation, and always think of solutions..think big.

Rating:
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6 PREVIOUS COMMENTS

Lynx_at_march_15_rally_thumb NOV 13, 2007
lynx

there’s a great documentary on exactly this topic called “The Corporation” that systematically analyzes corporate law as it has evolved over the last several centuries and (among other things) shows how it is actually illegal for corporations to implement the kinds of changes unnecessary to bring about meaningful economic, environmental, and social change because doing so would negatively impact their profit margins and by law corporations must put their shareholder returns above all other considerations.




the system isn’t broken folks, it’s working exactly the way it was designed to work. if you don’t like the results the best response is not to attempt to “fix” the machine but to build a better one.

Photo_37_thumb NOV 14, 2007
Ian Wooden

I beleive Richard has some very interesting things to say. Moreover, I find it even more interesting that Richard’s view of corporations is exactly how I view Nazis. Unfortunately, I do believe that his perception of the corporation is colored by the very small minority of corporations which are negligent.




Richard, you are right; there is a problem in the system. Not all companies take a balanced score card approach (to coin the term developed by Kaplan and Norton) in making sure all constituents are taken into consideration. This is the reason in which I posted my artilce in which you respond. However, I, and millions of other business people (and I truly do mean millions… pick up a business periodical, mangement journal, or attend a business class) realize that there are things that need to be done and, believe it or not, they are taking action.




Every day, companies are changing the way they do business in order to better things for the future; things for the environment, their employees, and communities. Interestingly enough, they are even achieving greater profits. They are strategically choosing their alliances with NGO’s that truly maximize the synergies between them.

Rethosdefaultavatar_small NOV 14, 2007
Richard Treadwell

Alright, let’s take a more specific look. Before that, it really is interesting that you view Nazi’s that way because IBM, Coca-cola, Union Banking Corporation all supported the Nazi effort… all in the name of profits. Corporatism is akin to fascism. They are both authoritarian based structures, democracy is non-existent, they’re both brutally destructive systems.




What you are saying is, with a change in consumer opinion, corporations will need to be more socially responsible because social responsibility is what will sell. But what your missing is the that the corporate structure is inherently greedy, power-hungry, and unaccountable. Think about how the incentives are set up. A society will always tend to the direction of its incentives, because in the end most people will follow the path of least resistance and most benefits. So if every incentive tells you to lie and cheat, because you’ll be successful that way, as countless corporations have done, it doesn’t really matter how many are perceived to be do-gooders. It’s like a guy that can’t get over his addiction because his brain structures still crave the substance…it doesn’t matter how much we would like for corporations to just naturally do the right thing, the underlying structure goes against the grain, and we will, as a society, succumb to the corruption and disingenuity that characterize the incentive of capitalist institutions.




<pre><code>If the primary goal is profits, if that is the driving force, you will inexorably have a corrupt system. These "new businesses" will only make reforms to the extent they turn a profit. Until now that's entailed hiding, deceiving, externalizing, and blaming. The incentives are too strong. Privatized resources, creates a class of owners and a class of workers. Market systems create the 80-20 rule. 20 percent of the population owns 80 percent of the wealth, while the majority of the population lives in destitution.</code></pre>


We just cannot have such an accountable structure dominate our life. It controls too much of our society. Look at kiadso’s post on corporate social responsibility http://www.rethos.com/news/view/626-The-Silliness-of-CSR-Corporate-Social-Responsibility-.
She mentions that corporations dominate our food, healthcare, media. Do you agree that ABC airing expose’s on Disney’s practices would be illegal? The only way it would be legal is if it caused people to be more likely to buy Disney products, but realistically Disney’s stock would plummet, and the management could be sued.




The kind of reform you suggest requires that we dissolve the corporate structure all together. Imagine that people demanded labor practices that rejuvenated communities by reinvesting in them, for example paying coffee growers more, and turning around and investing a portion of profits in the community’s education and health care. Imagine people demanding that workplaces operate democratically, and that job’s be divided equally so people do both creative and mundane tasks. Imagine that companies are held directly accountable, and have open and transparent operations. That advertising is more about honest consumer index reports, studies on product comparisons, nutritional information, forthright communication of possible dangers. Each of these reforms more tightly constrict profit-margins. They make it harder to invest in a corporation. By god…goods and services may be provided through positive intentions and not pure unabated greed! And you can’t invest in good intentions. The optimal structure to provide goods and services in this way is the co-op. Real estate co-ops, grocery co-ops, banking and clothing co-ops.




Why? One very simple, irrefutable reason. Democracy. Co-ops open the economic arena to every member of society. No longer are we forced to vote with our wealth, which creates massive inequities because as you so poignantly mentioned…corporations have the power and resources to make changes, as such they will make changes in THEIR favor. And you cannot, cannot deny that corporations systematically enact policies that harm the public. Monsanto, Wal-mart, Enron, KBR, Halliburton, C.A.C.I., Blackwater… the internet companies are pushing to alter net neutrality… oil companies don’t allow progress in world-saving renewable technology. Ian, really, you put to much faith in a fascist system. Economic democracy is the way of the future, and corporations are just not gonna cut it.

25032007477_thumb NOV 14, 2007
Paul

You are a very intelligent and knowledgeable writer. You manage to put what a lot of people feel and think into an understandable and concise form. I am interested to hear your views on decentralisation and community based government/economy as an alternative to capitalism? You mention co-ops in your previous post would you be able to expand on that? I find that a lot of people know whats wrong with capitalism and so am more interested in hearing what alternatives people propose.

From_the_heart_of_the_world_thumb NOV 18, 2007
Li Li Parsons

That the corporate model is based on a fascist-like one is only common sense from the pov of those who have worked their whole lives for something just to have it taken away by the careless and callous motive of profits. My grandfather worked for over 40 years on the northern railroad and even became a vp… you wuld have thought that at that high level of upper management he would have had a cushy retirement and pension… but not only did that not manifest, when he died, his widow was left peniless. Did the company owners actually care? Of course not. He was treated much better, and so was she, I am almost ashamed to say it, by the military, he having been a SeaBee in WW2 serving in the Pacific.
I myself have worked both in tht trenches of the working class frontline in the padded-office corporate arena and was treated to the shaft several times as I did not have the iron will and cold demeanor to slash and hack my way through the lines to the highest place I could get to. No amount of hard work, dedication, nor intelligence ever got me closer to security as long as I was dependent upon someone else for my paycheck no matter how kind or conscientious that business claimed to be.
The working poor are growing and CEOs are reaping record profits.
The number of debtors are growing.
The number of home repossessions are growing.
The number of people who are not covered by either state programs nor private health insurance because they make too much to qualify for the former and too little to afford the latter… is growing and growing…




So… while corporations rake in tons of profits and everyone else suffers, and there are fewer and fewer methods of recourse for the average worker in the face of unilateral policies… I would say that our capitalist society is a system that is broken and we need to fix it.




it wont happen from the top down, nor can the middlemen in our legislatures do any less harm… we must take it apart and rebuild something new…. from the bottom up.
I have worked in

From_the_heart_of_the_world_thumb NOV 18, 2007
Li Li Parsons

Forgive the multiple typos… very distracted by a four year old and trying to stay focused on writing!
Li Li


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