Saving Capitalism

Saving Capitalism

Adult nonfiction
"The threat to capitalism is no longer communism or facism but a
steady undermining of the trust modern societies need for growth and
stability. When most people stop believing they and their children
have a fair chance to make it, the tacit social contract societies
rely on for voluntary cooperation begins to unravel. In its place
come subversion, small and large--petty theft, cheating, fraud,
kickbacks, corruption. Economic resources gradually shift from
production to protection.
We have the power to change all this, recreating an economy that
works for the many, rather than the few. Contrary to Karl Marx, there
is nothing about capitalism that leads inexoribly to mounting economic
insecurity and widening inequality. The basic rules of capitalism are
not written in stone. They are written and implemented by human
brings. But to determine what must be changed, and to accomplish it,
we must first understand what has happened and why."
Robert B. Reich, author of Saving Capitalism For the Many, Not
the Few, grew up in a time (the 1950s) when a family could live
decently on one income. His father ran a women's clothing shop. His
family, while not rich, lived comfortably.
The decades right after World War II were good ones for many
American families. (There were plenty of folks like minorities,
however, who didn't share in the prosperity party). Our nation had a
large and growing middle class. Hard work was rewarded. Education
led to better jobs. Families had reason to believe that they could do
well and their children could do better.
Then things went seriously wrong. While the pay and perks of
the large corporation CEOs and Wall Street traders skyrocketed, the
pay and wealth of everyone else stagnated and declined. Decent jobs
were automated or went overseas. The replacement ones in the service
sector can't keep even full time workers out of poverty. We have the
widest have/have not gap since the Gilded Twenties segued into the
Great Depression. Like many of us, Reich wondered what the Hell was
going on. Unlike most of us, he could do the research to find out
what was going on. In Saving Capitalism For the Many, Not the Few he
explains his findings in language those of us who don't have economics
degrees can understand.
One of Reich's particularly salient points is his debunking of
the "free market" as natural, inevitable, and impersonal. Its
proponants, those who are getting obscenely rich by this myth, claim
that government intrusion can only cause failure of the system and
unmitigated disaster.
"According to this view, whatever we might do to reduce
inequality or economic insecurity--to make the economy work for most
of us--runs the risk of distorting the market and causing it to be
less efficient, or of producing unintended consequences that may end
up harming us..."
The free market is a man made invention. It is governed by
rules that were created by mere mortals in government. In the decades
following World War II the free market worked for a lot more people
because middle and working class folks were represented by entities
like strong unions. These days the rich, powerful, and well connected
have disproportionate power to write the rules governing the free
market, slanting them even more in their favor. In this regard
America's economy is like a car with no brakes and a heavy foot on the
gas pedal.
Reich also shreds the myth of meritocracy (people are worth what
they're paid), examining, in particular, the rise of the working poor
and the idle super rich. And he shares some amazing ideas about how
America's economy can once again work for the many.
This book is so timely. As I wrote it I saw an expose on
Disneyland. While many of their workers earn so little they sleep in
their cars and need SNAP, the CEO received $44 million for one year.
Taxpayers--that's you and me--give the company over one billion
dollars a year in tax breaks and public services.
If that doesn't make you angry, I don't know what will.
On a personal note, last week my advisor emailed me that I'm one of
the most dedicated, engaged students she's known as a professor. That
makes me very proud. Engagement is me. I'm glad it shows.
April Fools day is going fine. I was going to play a joke on a friend
but then he set my friends and me up with delish free food so I didn't
have the heart to.
A great big shout out goes out to all economists and other academic
folks who help us understand the forces that screw most of us.
jules hathaway


Sent from my iPod