Re: Capitalism vs. Corporatism
By: Kaelon to Boraxman on Mon Jul 18 2022 01:50 pm
This is an interesting conversation, and I hope you don't mind if we debate it a bit further.
I think true Capitalism, including the "free hand" of the market, needs freedom in order to function properly. Which means it also needs the freedom to fail. At some point in our history (most likely, the Copper Speculative Bubble of 1908, which resembles a lot of the same Cryptocurrency Bubble we have now), the wealthiest investors started to leverage their tremendous assets to co-opt banking institutions to create insurance models that would, in essence, create soft-floors for failure. This should have been thwarted then and there. But it became the foundation for how our society enabled the rampant speculation of the 1920s, and how it rebuilt our entire economic global order following the Great Depression.
Corporations today are not engines of capitalism or innovation. They are syndicates of vast capital control, and resemble nothing like the intentions of true capitalism -- which were not single-man corporations or self-employed persons. Remember, after all, that the modern corporation traces its origins to the Dutch Corporations of the late Middle Ages and the Italian Banks of the early Renaissance. They had shares, shareholders, risk-taking, reward-sharing, and all of the hallmarks of true opportunity pursuit. What we have today is nothing like the original corporations, because they have become so deeply interconnected with our institutions - especially our fiduriary controls and our political organs.
One might argue that following the Great Depression, the only way to mobilize all of society to combat both imminent economic institutional collapse and to defeat geopolitical threats, was to unite the pillars of commerce and government into a single corporatist continuum. This was certainly the approach of the Fascists and Communists. I would argue it's ultimately what happened in the Western - now Global - Order, in that Democracies learned how to harness and unify the economic structures to unite military and industrial components to thereby coopt commerce for political aims.
If that's the case, then, is there any way to unwind this Corporatist Dystopia in which we find ourselves? Or has the dream of a true Capitalist Restoration gone for good?
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There is little 'debate' to be had here with me because I think your commentary is quite astute, in particular your recognition that the current Western Global Order seems to be an implementation of quasi-fascist, or facsist thinking.
We are implying here that there was a system created, then implemented. The true origin of Capitalism comes from a number of reforms and social changes which were in part the result of evolution of western thought, the product of innovation, and in part, simple historical requirement brought about by circumstance. Unlike Marxism, or Fascism, which has a clear origin, Capitalism is the term given to a state of affairs which is the result of evolution. Adam Smith didn't plan a system, which people then adopted and implemented, but instead sought to describe the then current state of affairs. People make a mistake of thinking there is a "Capitalist" plan, a set of proscriptions and ideas which define what Capitalism is, as if laid out by canonical works.
The narrative I've described is what maintains the status quo. Capital is power, and this power needs to legitimise its position. Capital needs the state, as the state is the source of all property rights and the legal structures which privilege Capital. Libertarian/minarchist ideology seems to be a niche, mostly American oddity. A valid call to arms against overbearing government, confused though by not realising that Capital is served better by a corrupt state than by a minimal state no state at all.
I think as long as we believe that the economic continuum is from Marxist-Capitalist, we're stuck. We need to free ourselves from ideological thinking, and return to an open minded pragmatism, with our values ordered around what best promotes the wellbeing of our nation. Shift thinking away from "isms" and towards principles which must prove themselves.
I believe that the way forward is to continue the progression away from feudalism towards self-ownership, self-governance and democracy. Capitalism stopped halfway, we need to continue. Workplace democratisation, truly acknowledging that property rights spring from labour (so abolishing renting human beings aka "buying labour"), rethinking some property rights (strengthening the property rights of those who produce and weaking property rights which lead to rentier Capitalism). The core issue isn't wealth inequality, it is the problematic pattern of property rights and market fundamentalism. The idea that 'markets' are always the best solution to anything you can potentially apply them to.
I imagine a world where human beings are fully self governing, where no one is alientated from their own economic activity and we all direct our economic activity rather than have it directed by Capital. Capital is just a factor supplier and commodification of things is limited, where human need and national interest trumps private desire for profit. An ownership economy consisting of a massive patchwork of private enterprises, which consist if US, responding as always, to market demands, wants, needs.
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