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 as something
akin to the serene acceptance
of natural law.
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?
[POF] 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?
[POF] "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 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.
[POF/D,S,Di,Dn,Ah]
"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 ancien
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
blemishes, having
been long ago imputed to the "inevitable" order
of things do not provoke the
kind of furor reserved for socialist
experiments. 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. [S]
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.
[IS] 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. [Dn, S] 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 few, chiefly connected with
the private ownership and administration
of the firm (and the machines).
On the other we have unemployment
and lowered consumption for the
many, chiefly the workers' side. And
therefore less 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
may be knocked out of the job
market permanently or semi-permanently,
depressing consumption precisely as
more goods are being turned out!
For, 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 socialistoid
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. [Dn, Ah] 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,
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, wherein
private ownership is
retained by a relatively small circle of speculators or absentee
owners generations removed from the
actual day to day management and
production. 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. Further,
it may be argued that precisely
under private ownership many
resources are wasted or lie idle,
since production is only entertained
if it promises profits.
4E. [Di, Dn]
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, misemployment,
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" gains).
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.
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.
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--these
are all hidden, unacknowledged,
social taxes that
we all pay for the
privilege of living under capitalism.
NEXT: PART TWO OF WHITEWASHING
THE FACE OF CAPITALISM