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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The sad modern purpose of government

Monbiot.com points out what "progress" has come to mean for government:

Progress is measured by the speed at which we destroy the conditions which sustain life. Governments are deemed to succeed or fail by how well they make money go round, regardless of whether it serves any useful purpose. They regard it as a sacred duty to encourage the country’s most revolting spectacle: the annual feeding frenzy in which shoppers queue all night, then stampede into the shops, elbow, trample and sometimes fight to be the first to carry off some designer junk which will go into landfill before the sales next year. The madder the orgy, the greater the triumph of economic management.

Related topic: Down with the GDP!

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Down with the GDP

In the November, 2009 edition of The Atlantic, Megan McArdle reminds us why we need to wean ourselves of using the GDP as an indicator of economic health. Here's a sample:

GDP does not, and cannot, reflect the waste of enormous effort, and precious natural resources, that went into building something that suddenly no one wants. Moreover, it misses many other aspects of our existence. Strip-mining a picturesque mountaintop, or clear-cutting a primeval forest, shows up in GDP only as a boost to output. Meanwhile, in India’s national accounts, all of Mother Teresa’slabors among the poor would have had only the most minimal possible impact. GDP can record how much money we spend on health care or education; it cannot tell us whether the services we are buying are any good.

So how do you accurately measure a nation's health? One alternative is the HDI.

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Question the significance of the “gross domestic product” (GDP)

I just finished reading a terrifically clear and concise article on measuring "the economy" by Jonathan Rowe, published by Harpers. It is entitled "Our Phony Economy." Please allow me to set the scene. Haven't you wondered why politicians and the news media so often obsess about the rising and falling…

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