Showing posts with label plutocracy. Show all posts
Showing posts with label plutocracy. Show all posts

Tuesday, January 28, 2014

Growth and globalisation cannot cure all the world’s ills


January 27, 2014 7:33 pm


By Gideon Rachman


New forms of political conflict have emerged that are resistant to traditional prescriptions





Faced with a dangerous political threat, governments the world over tend to place their faith in the same magic medicine – economic growth. When world leaders try to address the roots of terrorism, for example, they instinctively assume that prosperity and jobs must be the long-term answer. And when a regional conflict threatens to get out of control – in east Asia or the Middle East – the standard political response is to call for greater economic integration. From Europe to China, governments place their faith in economic growth as the key to political and social stability.

But just as doctors fear the emergence of superbugs that will not respond to existing drugs, so world leaders are beginning to witness the emergence of new forms of political conflict that are resistant to their traditional prescriptions – more trade and more investment, washed down with a good dose of structural reform.


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On this story

Gideon Rachman Abe and Rouhani delight Davos
Populism puts global elite on alert
Philip Stephens Tomorrow holds both riches and risk
Iran courts western oil majors at Davos
Fall in capital flows poses growth risk
On this topic
Samuel Brittan Banish ‘inequality’ from economics
Leading View Refreshing the board
Undercover Economist Casinos and consumer manipulation
Editorial Much ado about rising inequality
Gideon Rachman
The Americans are pulling back
Bullingdon bust-up
Take inspiration from Sarajevo
Gideon Rachman The US has pivoted

Three political superbugs are causing special concern. The first is the spread of conflict in the Middle East. The second is the growing rivalry between China and Japan. The third is rising inequality in the western world – and the threat of social conflict that goes with it.

Delegates at the World Economic Forum in Davos, which ended last week, are the classic believers that capitalism and globalisation are the best antidotes to conflict. This belief is so deeply ingrained that it no longer even needs to be articulated. You can just see it in the way in which a Davos audience responds to political leaders.

This year it was President Hassan Rouhani of Iran who was received with great enthusiasm, largely because he seemed more interested in trade and investment than in nuclear weapons. Mr Rouhani did not shift Iran’s position on the difficult political issues – such as Syria, Israel or nuclear weapons – in any important way. But he sent a significant signal by beginning his speech with a statement of his ambition for Iran to become one of the 10 largest economies in the world. The Iranian leader also stressed the need to improve his nation’s relations with the rest of the world in order to achieve that goal. This emphasis on economics suggested to those in the audience that President Rouhani is literally a man you could do business with.

As a result, Mr Rouhani is in the novel position, for an Iranian leader, of being regarded as a voice of reason in the Middle East. But the president’s elevated status in the eyes of the Davos crowd is also a sign of how bleak things look elsewhere in the region.

No appeal to economic rationality is likely to end the war in Syria – where both sides are fighting for survival. It is also clear that the jihadists who are flourishing in Syria, Iraq and elsewhere are unmoved by the fruits of globalisation. Unless something goes seriously wrong, they will not be showing up in Davos any time soon.

Many still hope that an improvement in the economic situation of the Middle East will assuage the economic despair on which militant Islam is assumed to flourish. Yet not all jihadists hail from poor countries or impoverished backgrounds. Some of the militants showing up in Syria have travelled from Europe. Others have come from Saudi Arabia or the Gulf states. Jihadism is a disease that does not respond well to the traditional economic drugs.


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Monday, May 20, 2013

Plutocrats: The Rise of the New Global Super-Rich and the Fall of Everyone Else





Chrystia Freeland
Reviewed by Richard N. Cooper
May/June 2013
Article Summary and Author Biography


Freeland, a journalist and editor at Thomson Reuters, examines how a fairly diverse new class of plutocrats came to be and explores some of the consequences and potential implications of its rise.




AUTHOR
PUBLISHER
Penguin Press HC, The
YEAR
2012
PAGES
336 pp.
ISBN
1594204098
PRICE
$27.95


Income and wealth in the United States today are less evenly distributed than at any time since the 1920s. One result is the emergence of a new class of plutocrats. The phenomenon is not limited to the United States: China, India, Mexico, Russia, the United Kingdom, and other states have witnessed similar changes. Freeland, a journalist and editor at Thomson Reuters, examines how this fairly diverse new class came to be and explores some of the consequences and potential implications of its rise. In a world of mass consumption, successful innovations can result in great wealth, as can any rapid social and political change, at least for those well placed or lucky enough to take advantage of new opportunities. More ominous, individuals can become fabulously wealthy at the expense of other citizens, by securing privileges from powerful government officials -- sometimes through influencing the decision-making process, sometimes through outright bribes or offers of lucrative future employment. Freeland worries about the increasing political influence of the superrich and the growing social distance between them and ordinary people. But she has surprisingly little to say about the most traditional route to plutocratic status: inherited wealth.


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Tuesday, March 02, 2010

The United States of Corporate America: From Democracy to Plutocracy


Friday, January 22, 2010

The United States of Corporate America: From Democracy to Plutocracy

"The price of apathy towards public affairs is to be ruled by evil men."
Plato, ancient Greek philosopher


...“The 20th century has been characterized by three developments of great political importance: The growth of democracy, the growth of corporate power, and the growth of corporate propaganda as a means of protecting corporate power against democracy.”
Alex Carey, Australian social scientist


“The most effective way to restrict democracy is to transfer decision-making from the public arena to unaccountable institutions: kings and princes, priestly castes, military juntas, party dictatorships, or modern corporations.”
Noam Chomsky, M.I.T. emeritus Professor of Linguistics


On Tuesday, January 19 (2010), the Obama administration got a kick in the pants from the Massachusetts voters when they filled former Senator Ted Kennedy's seat by electing a conservative Republican candidate. The essence of their message was: stop dithering and start governing; stop trying to satisfy the bankers and please the anonymous editors of Rupert Murdoch's Wall Street Journal, and start caring for the ordinary people.

Two days later, President Barack Obama seemed to have understood the people's message when he announced a “Volcker rule” that will forbid large banks from owning hedge funds that make money by placing large bets against their own clients, using information that these same clients gave them. It was about time. Such a policy should have been announced months ago, if not years ago.

On the same day, however, a nonelected body, the U.S. Supreme Court, threw a different challenge to the Obama administration. Indeed, on Thursday January 21 (2010), a Republican-appointed majority on the U.S. Supreme Court took it upon itself to profoundly change the U.S. Constitution and American democracy. Indeed, in what can be labeled a most reactionary decision, the Roberts U.S. Supreme Court, ruled that legal entities, such as corporations and labor unions, have the same purely personal rights to free speech as living individuals. Indeed, the First Amendment of the U.S. Constitution says “Congress shall make no law ... abridging the freedom of speech.

The only problem with such a wide interpretation of the U.S. Bills of Rights (N.B.: The first ten amendments to the United States Constitution are known as the Bill of Rights) is that this runs contrary to its letter and its spirit, since it clearly states later on that "the enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people, and reserves all powers not granted to the federal government to the citizenry or States.” The words “people” and “citizenry” clearly refer here to living human beings, not to legal or artificial entities such as business corporations, labor unions, financial organizations or political lobbies.

Such entities, for example, cannot vote in an election. Indeed, laws governing voting rights in the United States clearly establish that only “Adult citizens of the United States who are residents of one of the 50 states have the right to participate fully in the political system of the United States”. No mention is made of corporations or other legal entities.

However, with its January 21 (2010) decision, the majority on the Roberts U.S. Supreme Court is saying in effect that even if artificial entities cannot vote in an election, they can spend as much money as they like to influence the outcome of an election. Money is speech for them, and the more a legal entity has of it, the more it has a right to become powerful politically and control the political agenda.

In fact, what Chief Justice Roberts and his conservative Supreme Court majority have done is to overcome a century-old democratic tradition in the United States in granting a constitutional right to business corporations and to banks, (because they are really the ones with a lot of money), to use their enormous resources to not only participate in debates about public issues, but also, and above all, to de facto dictate the election of candidates of their choice to public office.

That's plutocracy, not democracy!

Plutocracy is defined as a political system characterized by “the rule by the wealthy, or power provided by wealth.” Democracy, on the other hand, is defined as a political system where political power belongs to the people. This means “a political government either carried out directly by the people (direct democracy) or by means of elected representatives of the people (representative democracy). The terms "the power to the people" are derived from the words "people" and "power" in Greek.

This fundamental idea of democracy was well summarized by President Abraham Lincoln, in his 1863 Gettysburg Address, when he said that it is “a government of the people, by the people and for the people.” This is a definition that is based on the basic democratic principle of equality among human beings.

But now, the Roberts Court's decision must have made President Lincoln turn in his grave, because that decision, in effect, transfers political power from the living “people” to artificial corporate entities, with tons of money to spend. If Congress does not act quickly to reverse this decision, legal entities will be able to spend freely in the media to support or oppose political candidates for president and Congress, and this, as far as the last moment of a political campaign. This is quite something!

By a stroke of the pen, the Roberts Court has thus abolished the laws governing American electoral financing and removed limits to how much special money interests can spend to have the elected officials they want. The government they want will largely be “a government of the corporations, by the corporations, for the corporations.” Truly amazing!

To reflect the new political philosophy of the five-member majority of the Roberts Court, the Preambule of the U.S. Constitution that says “We the People of the United States, in order to form a more perfect Union...” should, maybe, more appropriately be changed for “We, the business corporations of America...”

It is that much more ironic that the word “corporation” appears nowhere in the U.S. Constitution or in the Bill of Rights. It is scarcely conceivable that the drafters of the Constitution had anything resembling corporate entities in mind when they drafted the Bill of Rights. But the Roberts Court majority does not seem to agree with Washington, Jefferson, Franklin, Madison, Mason...etc. Because of their decision, the five conservative members of the U. S. Supreme Court of today have become the new Fathers of the U. S. Constitution.

For nearly a century, it has been assumed that the U.S. Bill of Rights protected persons, not corporations. Even if sometimes the courts have extended the rights of the 14th Amendment banning the deprivation of property without due process or equal protection of the law to the property of corporations, it was never thought that the purely personal rights of the first Amendment of the Bill of Rights applied to corporate entities as well as to human beings. This is understandable. Business corporations are created through legislation that gives them potentially perpetual life and limited liability to enhance their efficiency as economic entities. While such characteristics can be beneficial in the economic sphere, they represent special dangers in the political sphere. That is the rationale for not extending constitutional rights to purely legal entities.

But now, the five-member majority of the Roberts Court have said that such legalized artificial entities have the same constitutionally protected rights to engage in political activities as living individuals.

In conclusion, let us reiterate that in a democracy—and as it is clearly established also in the U.S. Bill of Rights and in all democratic constitutions—the citizens are the only legitimate source of law. It follows inexorably that corporations, not being citizens, cannot be legitimate political actors. Chief Justice Roberts and his conservative Supreme Court majority have thus badly erred in their anti-democratic judgment.

Their judgment is clearly revolutionary or, more precisely, counter-revolutionary.


Rodrigue Tremblay
[http://www.thenewamericanempire.com/author.htm] is professor emeritus of economics at the University of Montreal and can be reached at rodrigue.tremblay@yahoo.com. He is the author of the coming book "The Code for Global Ethics" at: http://www.TheCodeForGlobalEthics.com/

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Posted, Friday, January 22, 2010, at 5:30 am
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