2011: Calling Time on Capitalism - Democratic Underground

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Sat Jan-01-11 05:45 PM
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2011: Calling Time on Capitalism

http://www.commondreams.org/view/2011/01/01-2

"Recent decades have seen a massive redistribution of wealth, imposing the cost of successive crises on the poorest. Enough!"

by Richard Wolff

The end of 2010 brought renewed Washington rhetoric, media hype and academic me-too declarations about the US economy "recovering". We've heard them before since the crisis hit in 2007. They always proved wrong.

But recovery noises are useful for some. Republicans claim that government should do less since recovery is underway (of course, for them, government action is always counterproductive). Likewise, Republicans and many centrist Democrats claim that income redistribution policies are no longer needed because recovery means growth, which means everyone gets a bigger piece of an expanding economic pie. Recovery hype also helps the Obama administration to claim that its policies succeeded.

Yet, this is more fantasy than reality. After all, the nearly 20% of the US labor force that became unemployed or underemployed in 2009 remains so as we enter 2011. No recovery there. Worse still, a quarter of those who found work since the crisis began only got temp jobs without benefits. Second, foreclosure actions by banks – including those who got most of the government's bailouts – continue to eject millions from their homes. No recovery there, either (except for the bigger banks).

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Thus, this crisis and its burdens will continue until capitalists see sufficiently attractive opportunities for profit to resume investing and hiring people in the US as well as elsewhere. The freedoms of US capitalists to gain immense government supports as needed, and yet to invest only when, where and how they can maximize their private profits are paramount: the first obligations of government. The freedoms from want and insecurity for the US people remain a distant second priority – until mass political action changes that.

In good times, as in bad, capitalism is a system that places a small minority of people with one set of goals (profits, disproportionally high incomes, dominant political power, etc) in the positions to receive and distribute enormous wealth. Those people include the boards of directors that gather the net revenues of business into their hands and decide, together with the major shareholders in those businesses, how to distribute that wealth. Not surprisingly, they use it to achieve their goals and to make sure government secures their positions.

No Keynesian monetary or fiscal policies address, let alone change, how that system works and who uses its wealth to what ends. No reforms or regulations passed or even proposed under Obama would do that either. To avoid the instability of capitalism and its huge social costs requires changing the system. That remains the basic issue for a new year and a new generation. Will they break today's version of a dangerous old taboo: never question the existing system?

More at link

More from the author: http://rdwolff.com/

Picture I found, not from article, but could easily go with it: