Free-market ideology (neoliberalism) – the posts

Adjunct teachers are paid so poorly that many qualify for food stamps. Meanwhile students across the country are underwriting ever higher tuition through debt.

Adam Smith discussed the harms caused by monopolies1 in the frequently, ritualistically cited book, The Wealth of Nations2. The progressive politics of the end of the 19th century and into the beginning of the 20th was marked by a deep reaction to the monopolistic practices of large companies then. This led to the ant-trust legislation that remains the cornerstone of the Federal government’s efforts to protect competition in the marketplace: Sherman Act of 1890, the —>> read more –>>

The earth is burdened by the tsunami of plastic refuse that will never degrade. Government needs to protect us from capitalist enterprises delight in externalizing costs to our detriment and their short-term benefit.

Since corporations have reason not to worry about safety and efficacy, we do need the government to represent us. Common sense and ethics suggest that a company establish the safety and efficacy of products and services BEFORE selling them. In a world better balanced to the needs and interests of the vast majority this would be a required step. Heart stents and tricycles are examples of the failings of our current system.

Corporate concentration of income and wealth are core features of capitalism. From its earliest cheerleaders like Adam Smith, the drive for corporations to get ever larger and in the doing drive their competitors out of the market was noted and warned against. John Oliver provides a thorough and amusing introduction.

The new digital economy is displaying the same drive to concentration, monopolies and oligopolies, that capitalism has always displayed. Facebook, Google, Amazon, Apple, and Microsoft are just a new face of the predatory monopolists of the Rockefeller Standard Oil age.

NYTimes reports that one-time bonuses are the preferred pay strategy vs pay raises.Mysteriously the Times leaves out the role of unions and the long-term fall in unionization rates in the private sector in the US.

These corporate giants are “disrupting” healthcare or so the headlines say. Despite the media flurry we should not expect much. The structure of US healthcare defies little nibbles at the periphery. As noted many times here, we need to look to our developed country competitors for their proven approaches to how to set up a world-class healthcare system at world standard costs.

Shifts to contract work, losses in jobs due to automation and robots, growth in poorly paid occupations, low participation rates, healthcare and retirement tied to full-time jobs, and extremely unequal gains in income for the top 10% characterize jobs in our economy. Something radical needs to be done. Republicans are trickling, Democrats cautious, neither addresses the big changes underway.

A Note on Jobs & Unemployment Original publication date – 12/27/2016; Revised – 12/31/2017 As the presidential campaign of 2016 fades away and the Trump Era begins, we find a national scene without any real discussion of the facts of jobs and unemployment and what the future might bring. Trump and others talk about bringing manufacturing back to the US. No plan, plausible or otherwise, has ever been mentioned for how to accomplish this. The —>> read more –>>

Reich’s latest cartoon does a good job of describing the changes in the US economy, weaker on the underlying political campaign by the rich and corporations to restructure the economy to their benefit. Worth the 6 minute viewing time.

The miracle of the automatic self-regulating market in action. During the 1930s over-production of cotton chronically ran over by 50% and more. Since cotton is a durable product all of these years of over production just swelled the mountains of cotton sitting in warehouse waiting for demand. In 1933 the cotton stored in warehouses equaled the entire world demand.

Inequality in wealth and income is a continuing global crisis. The World Inequality Report 2018 defines the problem based on wealth ownership and the transfer of public wealth into private hands. Their are solutions but they require political organization and will.

Capitalism, Monopoly, Oligopoly and John Oliver Capitalism does a number of things very well. Concentrating power, wealth and income is one of them. Though we naturally focus our attention on wealthy individuals, fat cats, tycoons, money bags, but corporations, the legal entities with personhood (at least in the US) are also recipients of this concentrating power. John Oliver in his HBO program “Last Week Tonight” took on monopoly and oligopoly. His focus on the airline —>> read more –>>

Brazil is the newest scene of massive marketing campaigns to replace local food and local diets with ultra-processed industrial foods. This is beginning to repeat the mass experiment in bad eating habits that the US has already experienced for two generations.

Recent NYTimes article broadly acknowledges what every other developed country has recognized for decades, healthcare is not a good candidate for market control.

Capitalism is driven by a single internal logic that requires the transformation of people and nature into commodities to produce profits. This logic is amoral and the system, excepting for external controls by government and social institutions, just churns on.

For all of the chest beating about the bold risks taken by capitalists, the capitalist time horizon is very short when compared to the many years of work that have gone into almost every significant scientific and technological advance. Without extensive government investment in activities that deliver longer term success, the capitalist system will simply eat its seed corn until it is gone.

A consistent chattering point in American discussions of healthcare is the claim that if we can only bring transparency and competition to healthcare we will drive prices down and bring sanity to healthcare. The rest of the world knows that this is not the answer but we seem to remain in the thrall of universal free-market thinking. To answer this question lets start with an example of a market that works reasonably well and which —>> read more –>>

Companies must externalize as many costs as possible in free-market capitalism. Without adequate government protections you will end up with this kind of environment. from the New York Times: Nearly 14,000 Companies in China Violate Pollution Rules By EDWARD WONG “Environmental inspectors in northern China have found that nearly 14,000 companies, or 70 percent of the businesses they examined, failed to meet environmental standards for controlling air pollution, according to a state news agency report. The inspectors working —>> read more –>>