With the current financial meltdown, the loosening of regulative policies on banks and multinational corporations, the continued approval of tax cuts, a questionable boost in defense spending and so on, it’s clear that we are arriving at an ugly era in American politics. Our emergent popular culture is aimlessly looking for culprits and enemies of progress in order to reach altruistic closure, while the real hindrance goes unnoticed.
Before the economic crisis epitomized everything that’s wrong with expansion of financial institutions, many cases in developing nations underscored the major conflict as the IMF and World Bank began to indirectly control the third world through debt’s stranglehold. Moreover, the World Trade Organization and its provisions on the rules of trade have been less than favorable in harnessing the goals of globalization. Conjoin these realities with the unremitting monopolization of industries, multinational mergers and corporate lobbying, and we begin to notice an over-arching pattern.
Rather than plummeting into an argument about world economic policy, we can deconstruct the problem in terms of principle. Free-market capitalism — the guiding dogma for neoliberal economics, libertarianism and conservative principles — used to be about driving innovation, directing competition toward lower costs and incentivizing entrepreneurialism. Growth of enterprise meant more work for people and a quality of life that would permeate to the rest of the world. This is not what is happening.
The crisis of capitalism is that the financial machinery — with its failures — is intentionally designed to work the way it does. In other words, we must remember that oligopolies that command the economy are for-profit companies at their core. As those on the right side of the political spectrum turn against unions and scapegoat immigrants for national financial woes, we begin to play the polarizing political game that distracts us from the issues capitalism continually ignites.
Even liberals fall down a similar spiral by focusing entirely on CEOs and Bankers as greedy and merciless. While this may certainly be true, it’s vital to understand that the approach to amending the problems of capitalism should not be moralistic or personal to those who are involved in the malfeasance, but should rather spotlight the economic game as being programmed to unfold the way it is. Income inequality and social stratification are resultant symptoms of capitalism as it’s practiced today. The profit motive does not discriminate against factors that could have adverse effects on the non-players of business.
So why does capitalism continue on its ruthless path affecting the economy against the middle and working class? Because our perception of America and democracy leads us to believe that we can — and will — reach the wealth we desire if we just work hard enough, we continue in the stalemate. This subconscious illusion keeps us from taking seriously any meaningful proposals to level the playing field for the majority of people.
With the popularity of divisive rhetoric from laissez- faire types, even “level the playing field” sounds like it’s stained with Red. But is it radically socialist to propose a critical look at the faults of capitalism? Should our infatuation with consumption really be put at a higher regard than the well being of the developing world? As simplistic as this appears, it’s difficult to overlook the correlations. What’s more, it’s difficult not to be pessimistic about our future prospects.
Manny Guisa is a senior film and electronic media major and guest writer for the Daily 49er.
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