Re: Supercapitalism: The Transformation of Business, Democracy and Everyday Life by Robert B. Reich.
Jim Bacon asked his writers to read and report on this book by former Clinton cabinet official, Robert B. Reich. Here is my homework in several installments.
Reich describes the changes in America, and across the world, caused by the transformation from the Industrial Era to the Information Era. And, for the Third World from the Agrarian Era to the Industrial and Information Era at the same time. His findings of economic trends and facts, believe it or not, were the basic same things predicted by the long range study (the last of the Army 21 studies) I lead in 1990-92 for the period 2005-2015.
Interestingly enough, our study said the key to the future, domestically and abroad, was “the political perception of economic change.” And, that a “Gandhi with guns” could articulate the grievances of the Have Nots as a cultural identity issue.
Consequently, I reject Reich’s dichotomy of Democracy vs. Supercapitalism (Reich’s name for the new phase of economics). Every ‘government’ that makes rules, executes rules and adjudicates rules from the tiniest tribe to the greatest civilization – ever – has its hands in the economy.
One of the best courses I took in grad school #1 was “Government and Business in a Mixed Economy” taught by the late Dick Darman and Roger Porter. The course showed how intertwined government and the business are. Was, are, is and will be – forever. So, I reject Reich’s basic assumption. Yet, many of his findings were spot on. Those that weren’t, I’ll just ignore for now.
His findings include the following items I’d agree are valid:
• Widening inequality in incomes
• Reduced job security
• Plethora of products and services appealing to our basest desires
• Large companies spend on lobbyists, lawyers, experts, public relations specialists and donations to ‘drown’ out the voices and values of citizens
The result is “Americans are losing confidence in democracy” (Reich’s word for our government).
Also, the GDP grew threefold (300%) from 1973 to 2006 – adjusted for inflation.
Productivity grew by 80%.
CEO incomes went from 66 times the ‘typical’ worker (1968) to 900 times the ‘typical’ worker (2005).
And, ta da, the gains in real income from 1974 to 2004 are by quintile
Lowest 5th – 2.8%, 2nd lowest – 12.9%, middle – 23.3%, 2nd highest – 34.9%, and highest – 61.6%.
Chew on those finding fellow Virginians. I’ll post in another installment what I think are better answers of “what must be done” than Reich’s. IMHO.