Capitalism under the microscope

Annie Leonard has passionately researched and written a book she titles: The Story of Stuff: How Our Obsession with the Stuff Is Trashing the Planet, Our Communities, and Our Health-and a Vision for Change (2010). I haven't yet finished her book, although I'd like to post on one point she strongly makes early on, a point that is the elephant in the room regarding most discussions of the American way of life. It is a topic not far from the hearts of the many free market fundamentalists out there. The topic is whether it's time to put capitalism under the microscope. Here's what Leonard has to say:

[There is no doubt we will reach the planet's carrying capacity; we're heading in that direction now.... a big part of the problem we face today is that our dominant economic system values growth as a goal unto itself, above all else. That's why we use the gross to metric product, or GDP as a standard measure of success.... All right. Are you ready? I'm going to say it: this critique of economic growth is a critique of many aspects of capitalism as it functions in the world today. There. I said the word: "capitalism." It's the Economic-System-That-Must-Not-Be-Named. When writing the film script of The Story of Stuff, my intent was to describe what I saw in my years on the trail of trash, visiting factories and dumps and learning about how things are made, use, and thrown away around the world. I certainly didn't sit down and figure out how to explain the flaws of capitalism. It was trash, not economics, that was originally on my mind. So at first it took me by surprise that some commentators called the film "an ecological critique of capitalism" or "anti-capitalist."... it turns out that a hard look at how we make and use and throwaway Stuff reveals some pretty deep problems caused by core functions of a specific economic system called capitalism. There's no way around it: capitalism, as it currently functions, is just not sustainable.... Yet, in the United States, were still hesitant to broach this unmentionable subject, fearful of being labeled unpatriotic, unrealistic, or insane. Elsewhere in the world, there's a widespread recognition that some aspects of capitalism aren't working well for the majority of the world's people or for the planet; people talk about it openly.... Can we put capitalism on the table and talk about it with the same intellectual rigor that we welcome for other topics? Can we examine the failures of capitalism without falling into generations-old stereotypes and without being accused of being un-American? Refusing to talk about it doesn't make the problems disappear. I believe the best way to honor our country is to point out when it's going astray, instead of sitting here silently as many economic, environmental, and social indices worsen. Now would be a good time to start looking at what we could do differently, and what we could do better.... The belief that infinite economic growth is the best strategy for making a better world has become like a secular religion in which all our politicians, economists, and media participate; it is seldom debated, since everyone is supposed to just accept it as true. Why are so few people willing to challenge, or even critically discuss, an economic model that so clearly isn't serving the planet and the majority of its people. I think one reason is that the economic model is nearly invisible to us. ... [W]e tend to forget that were viewing the world through the paradigm, like it's a pair of contact lenses.... before we can change a paradigm, we need to identify it as a paradigm rather than assume it is truth. [Starting at page xviii]

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We are neurons

British Author Matt Ridley recently gave a stimulating and entertaining talk at TED. The central topic was about "mating ideas," but the talk (which was engaging all the way through) took an surprising turn toward the end when Ridley announced that he doesn't care whether some individuals have a somewhat higher IQ than others. Smart individuals don't necessarily make for a smart society--he suggested that Neanderthals were smart individuals, but they didn't last. What do we modern humans have the Neanderthals lacked? We exchange things and ideas (the evidence suggests that the Neanderthals didn't exchange items and didn't have any meaningful division of labor, not even a sexual division of labor). We function together and we are able to create things that nobody on earth knows how to make individually. Who knows how to make a computer mouse? Nobody. The "team" that makes computer mice includes the coffee-grower who provides coffee for the guy who works on an oil rig, who pumps out oil in order to allow a chemist to make plastic for the mouse. But there are 1,000,000 other members of this team. We are prolific exchangers of ideas, and that is what we have over all other species. Each of us functions like a neuron, networking incessantly, enabling the whole to be much greater than the sum of the parts. Smart individuals (despite how interesting they sometimes seem) are often dead ends. What really makes a society fly is when individuals have a propensity to exchange ideas, a built-in drive for mating their ideas, allowing their ideas to go where no smart individual (or even many groups of smart individuals) could have ever anticipated. For an interesting epilogue, consider the work of David Sloan Wilson, who suggests that humans are half-bee (we're not quite there), and that religion serves as the binding force.

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Debtors’ Prison Still A Reality?

According to a recent article by Chris Serres at the Minnesota Star Tribune, courts still order debtors to go to jail when they can't afford to pay a judgment. Not only are the national media largely unaware of this phenomenon, but The New Yorker published an article last April that characterizes debtors' prisons as a pre-20th Century institution, and describes the America as a refuge for debtors.

As many as two out of every three Europeans who came to the American colonies were debtors on arrival. Some colonies were, basically, debtors’ asylums. By the seventeen-sixties, sympathy for debtors had attached itself to the patriot cause.

Jill Lepore of The New Yorker goes on to describe how American treatment of debt has evolved to allow bankruptcy and why this is a good thing.

Debtors’ prison was abolished, and bankruptcy law was liberalized, because Americans came to see that most people who fall into debt are victims of the business cycle, and not of fate or divine retribution.

Even Wikipedia describes debtors' prisons as a thing of the past, or at least an unconstitutional one, according to this 2009 New York Times editorial, "The New Debtors' Prisons."

20th Century Debtors' Prison

Times have changed. To be sure, most Americans who are deep in credit card debt do not have bench warrants issued for their arrest. However, in Illinois, Indiana and other states, a person who's gotten a judgment entered against them can miss a court date and find themselves being hounded by the police.

What about the argument that defendants may owe the money they are being sued for, and should have gone to court? Perhaps the threat of jail is the only way to make them appear in court.

Reporters from The New York Times and The Federal Trade Commission have found that the collection industry is in dire need of repair, and cited numerous, ubiquitous problems. Some of these problems are startling. To wit:

[More . . . ]

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The demise of the American middle class

These 22 statistics from Business Insider are shocking. In the aggregate they forcefully demonstrate that America's middle class is being wiped out. They also suggest a bleak economic future where, for instance, 61% of Americans always or usually live from paycheck to paycheck, and where 43% of American workers have saved less than $10,000 for their retirement.

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How much has the Wall Street bailout cost American taxpayers?

How much have U.S. taxpayers paid to bail out Wall Street? Here are many of the details, but note that $2.02 trillion remains outstanding. Also keep in mind that the TARP payments were only 10% of the total U.S. aid given to Wall Street. Be wary, then, when you hear Wall Street crowing that it has paid back much of the TARP money. Dylan Ratigan puts the topic in perspective.

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