The Return of Madcap Capitalism... by Robert Parry

[kentuck]

an excellent summation of how we got to where we are today.
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http://www.consortiumnews.com/2010/051410.html

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The Return of Madcap Capitalism

By Robert Parry
May 14, 2010

For much of the post-World War II era, there was a broad consensus that well-regulated capitalism – paired with an effective public sector – was the economic model that worked best, especially compared with the Soviet Union’s heavy-handed central planning or the madcap capitalism that had led to the Great Depression.

The harsh Soviet approach failed to meet basic consumer needs, and laissez-faire capitalism was too susceptible to the boom-and-bust cycles that brought on the Great Depression. President Franklin Roosevelt’s New Deal had charted a middle course that let capitalists make money producing and selling products while the government constrained capitalism’s worst excesses.

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Amid relentless anti-government propaganda and endless pressures for more deregulation, madcap capitalism has returned. The consequences can now be seen from the desolate factory towns in Michigan to the oil spill poisoning the Gulf of Mexico, from teacher layoffs in California to crazy market swings on Wall Street.

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For several decades now, the Right has invested heavily in think tanks and media outlets that trumpet the “magic of the market” and deride “big government.” The Republicans have relied on this same propaganda machinery to drive “wedge issues” into the American public, exploiting grievances over race and social changes.

The Right‘s propaganda system is now so advanced and dominant that it has convinced not only Tea Partiers but large segments of the U.S. population that the answer to their current economic woes is less government interference and perhaps more tax cuts benefiting the rich.

...........more

[Jim Sagle]

1. Exactly right. The New Deal RRRRRRAWWWWWKED!!!! Cowboy capitalism, not so much.

[Oregone]

2. "there was a broad consensus"

Oh. So it must be true. :)

What I find is mind-blowing is that people fail to connect the wealth distribution mechanism of capitalism (regulated or not) to consolidated power that causes regulatory systems to collapse.

People seem to love defending the "free market" and touting regulation as their pet cause to make capitalism work for everyone, but you are missing the forest through the trees. Capitalism is meant to distribute wealth create through production disproportionally to the already rich. It does this very effectively. No matter what you attempt to do to it at one point, this system allows monopolies and billionaires to form who have the power to interject themselves into the political sphere

[kentuck]

3. Huh.?

You disagree with the author?

[Oregone]

7. I disagree with the idea that "regulated capitalism" is some panacea that weve strayed from

Capitalism creates disparity. With enough perpetual disparity, the ultra powerful and wealthy will emerge. These wealthy capitalists will use their resources to create an unregulated market and corporatist fusing of the government and industry. Its essentially the natural evolution of capitalism.

You can talk about "well-regulated" this and that until you are blue in the face, but its a naive corner to argue from that essentially ignores the potential ability rich people & corporations have to influence the government. As long as this system allows such to not only form, but grow increasingly wealthier and more powerful, you can never truly regulate capitalism to work for everyone.

[kentuck]

8. It did good from about 1932 until about 1980...

The regulations worked pretty well. But then came a group that disdained regulations and government, in general, and they disliked the idea of paying taxes. They liked government but they didn't like to pay for it.

You say: "These wealthy capitalists will use their resources to create an unregulated market and corporatist fusing of the government and industry."

I agree.

They have paid off enough politicians to control the agenda in Washington.

And we pay the price. A very big price. We get to clean up the mess and suffer the consequences. It's much easier and quicker to teach people to be ignorant than to actually try and educate people. The truth is the enemy of all our evil deeds.


.

[Oregone]

9. Sure. It did one hell of a job creating a bunch of rich dicks who started fuckin with the government

Capitalism will always evolve into this mess because it enables the owners to become increasingly wealthier and benefit disproportionally from production.

Arguing for "regulated capitalism" is like arguing for an egg, and pretending it won't turn into a chicken. "Regulated capitalism" is just as fun as drunk driving right before some asshole gets into a wreck and kills people. Its essentially a farce because its just a stage of the economic system prior to the onset of massive pain.

The only thing that normally brings "regulated capitalism" back after the powerful do away with it is an utter disaster that hurts people.

This is a bipolar economic system, and I assert that the highs aren't worth the lows. There is a reason this system, even in its controlled, pretty form, contributes to wealth disparity...that being, it doesn't reward workers proportional to their contributions. And no matter how "regulated" you try to make this system, before the storm, thats also just wrong

[kentuck]

11. You make a strong argument Oregone.

And I tend to agree with your points about "regulated capitalism".

However, without violence, one can only do what is politically possible. I think Roosevelt took it about as far as it could be taken. It would have to be politically compromised, or you would have to have outright revolution, in order to make the changes that need to be made.

"Regulated capitalism", under the present circumstances, seems like a good deal. At least, at this time.

[truedelphi]

4. Robert Parry - so often head and shoulders above the rest.

K & R.

[moondust]

5. K/R

[defendandprotect]

6. "Madcap" . . .??? Corrupt, criminal, predatory capitalism . .. in fact,

unregulated capitalism is organized crime!!

[woo me with science]

10. "Madcap" sounds like so much fun!

Like a wacky, madcap, old Marx Brothers movie!

Oooooooh....

Marx. :evilgrin: