538 Modern Capitalism

538   Modern Capitalism


The great apologists for the Anglo-American
economies, especially those of preeminent economists such as Milton Freedman and Paul
Krugman, and an assortment of others of their ilk have attempted to create a new national,
or shall we say world myth, regarding the nature of capitalism. Their patron saints of course, a litany that
is probably very familiar, uh, to the listener and they include Adam Smith and Thomas Malthus,
David Ricardo, um, and now a closer, uh, to our hearts, um, such, such great thinkers
as Kenneth Arrow, uh, Paul Samuelson, Gary Becker, and of course, John Maynard Keynes. The concept of capitalism is_ has been sold
to the people of the world, and particularly the people of the Anglo-Saxon world, as being
rather simple. We have a lot of individual players, um, individuals
have, tried to maximize their freedom by playing the market, and the market is of course the
great arbiter. And the, the great propagandists have done
well in expurgating Smith. They have taken selective chunks from his
arguments, they have done a great job in expurgating Keynes, and essentially taking um, those tidbits,
which seemed to support their ideas of, of libertarian freedoms, um, for the benefit
of maximizing wealth. Unfortunately, really existing capitalism,
is, is much, um, a part of the great smoke screen. As, as much, um, part of the sort of Chinese
room methodology, uh, as any of the_ any of the propaganda that has been given to the
West with regard to Communism. It seems as though a lot of our illustrious
propagandists be they Krugman, be they Becker, be they Freedman, um, have attempted to take
Smith and use his name, take Keynes use his name, and have not told us what they really
said. The capitalist myth. . . Is one that dominates, the lives of, probably
in excess of fifty to maybe seventy-five per cent of the world’s population. And the world’s population must know, that
American style capitalism which is now s- slowly, like a disease, like a plague so to
speak, um, accommodating, um, the world, the world’s economies, um must be revealed for
what it really is. It is no more than another form of state capitalism,
and I would like to define my terMs free market capitalism of course, is the religion of the
day. Especially within the United States and probably
what, we can be safe to say, is the religion of the English-speaking world. Free market capitalism believes in the infinite
capacity of the market to absorb goods. And the absolute infinite capacity for individuals
to play a part in that market. The idea is that… Government. For all intents and purposes should maintain
the integrity of contracts, should of course, uh, attend to law and order, and should not
play a great role in economics as much as is possible. Unfortunately, that is very, very far from
the truth. The vast majority of players in the world
economy. In fact sixty-seven percent of the economy
of the United States is dominated, not by individuals, but by conglomerates. In other words, um, cooperative organizations
that orbit around the whim of stockholders. They are otherwise known as corporations. Corporations do not fit in the great scheme,
the great anti-mercantilist scheme of Smith. If anyone has read, um, cap_ ,um, the Wealth
of Nations one realizes that. The government indeed plays a great role. And when Eisenhower left office…- In the
nineteen-fifties he honestly w- uh, warned the American people, that a military industrial
complex would raise its head. This is obviously just theological, progression
of capitalism, the idea is, as you consolidate capital it becomes more and more necessary
for the government, of course, to regulate the whims of the market. Fewer players mean that the market is subject
to greater and greater fluctuations. A greater tendency to fall into recession
and depression. So, what we find is that the government has
attempted to do, away with a lot of the, great market forces that Smith describes. The idea is that more and more of yo_ the
American taxpayer money, and more and more of the capital capacity of the United States
is put into the hands of corporations. Through indirect means, or through means that
have been kept from the immediate sight of the American public and the world in general. The idea of a defense budget, which has been
as high as four hundred billion dollars a year, has given the Americans a great sense
of security. The belief that all of that money is essentially
put into the hands of defense contractors for the defense, of our beloved homeland from
all of those, uh, evil demons that seek to, um, to rape and pillage on the_ from the purse
of the United States. What is indeed the truth is that the vast
majority of this are used as means of propping up, um, large high tech industries that really
can’t compete. Due to inefficiency, due to dead weight loss
and other. Uh. Negative externalities within the market. For example, the United States semiconductor
industry collapsed in the nineteen- eighties primarily due to, due to competition from
their counterparts in Japan. The result has been, an_ in excess of one
hundred billion dollars’ worth of American taxpayer money, in the development of two
corporations. First United Memories and second Sematech
as an attempt to get the United States back into the high end of the semiconductor market. This does not obey, free market capitalism. In fact, um, some very good sources including
Steve Brower and Noam Chomsky, have pointed out, that were it not for, uh, taxpayer intervention
the vast majority of American businesses that are part of the world’s Fortune Five Hundred
probably would not be in existence today. Um, the Europeans are very much more open,
in terms of their use of, of social, uh, control over industries including cooperatives, and
including airbus industries and others, that are quite famous. The Americans therefore must be addressed
in specific. If indeed we are a free market capitalist
society, we have absolute freedom, we have liberties, of individuals participating in
the market. Then why is it necessary, that corporations
should subsume greater and greater, um, greater and greater, um, parts of the, uh, gross domestic
product of this country. Why is it that we should reduce, uh, the discretionary
income of Americans, and lower their wages in favor of giving, more and more money, um,
to the otherwise inefficient capacities of our corporations. This doesn’t seem to make very much sense
if one is actually_ believes, um, in Smithian, uh, capitalism. On the other hand, it seems as though the
free market capitalists have misread Keynes. It is very odd, that, this_ he the most influential
economists probably of the late twentieth century. Seems to have been grossly misread as being
a Ricardian capitalist when he is quite the opposite. If one remembers that the new deal was based
on, uh, Keynesianist ideas. The idea of the government’s responsibility
to pump prime the economy. One realizes that this cannot possibly jive
with the free market capitalist propaganda that is given to us by, such luminaries as
Krugman and Becker. In the most influential book of right wing
capitalist thought probably written since the end of the Second World War, is Milton
Freedman’s famous “Capitalism and fre- and Freedom.” Capitalism and freedom have often been linked
within the American psyche. That one is, is necessary for the other. Any alternative to capitalism obviously impinges
upon the freedom, uh, of, of the, the body politic so to speak. Um, the idea behind capitalism and freedom
is just simply this. One must eliminate government’s constraints
on individual choice on public choice, such that, a cap_ in a capitalist economy in and
of itself maximizes public choice. And government should stay out of the pot. Therefore, this is just yet another defense
of libertarian right wing capitalism. But the fact is had the government stayed
out of industry. It is likely that the United States would
fall further behind in the industries in which it has already ceded, um, preeminence to the
Japanese and to the Western Europeans. The United States ceded its dominance in steel,
mainly to the Japanese, and for a brief period of time in the nineteen- eighties to England. Further they have, uh, ceded their preeminence
in chemicals and machine tools to the Germans. And have ceded their, uh, dom- by slowly ceding
their dominance in aerospace, um, to a United Europe. Um, what is more, consumer electronics of
course have been put in the hands of the Japanese and the Koreans, and this has, um, been quite
well publicized, uh, in the United States. The United States government has been incredibly
responsible for propping up, ou- our corporations and propping up our gross domestic product. Um, by_ through the use of public debt and
through the use of tax payers money. These are facts, and these are essentially
the, tenants of American state capitalism without which we could not have the purportedly
successful economy that we have. Let us shine the real light, on really existing
capitalism as we have shown light on the real existing, socialism, around the world, and
let us eliminate the capitalist. . .

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