Silent Takeover

Hertz’s Position Not anti-capitalist Not anti-capitalist Not anti-business Not anti-business Also not necessarily pro-government Also not necessarily pro-government Is pro-people, pro-democracy, pro-justice (economic and social justice) Is pro-people, pro-democracy, pro-justice (economic and social justice) Questions moral justification for big capitalism Questions moral justification for big capitalism Big capitalism weakens democracy and co-opts the state Big capitalism weakens democracy and co-opts the state

So … Capitalism is King “End of History” and capitalism seems to have won “End of History” and capitalism seems to have won No alternative economic systems are being seriously discussed No alternative economic systems are being seriously discussed Corporations control huge amounts of wealth Corporations control huge amounts of wealth We are being “taken over” by corporations We are being “taken over” by corporations It is a silent take over and it is not good It is a silent take over and it is not good

How did we get to this? Post-WWII: the triumph of Keynesianism Post-WWII: the triumph of Keynesianism Economic crisis of 1970s caused a rethinking Economic crisis of 1970s caused a rethinking How can we have unemployment and inflation? How can we have unemployment and inflation? Rise of the New Right Rise of the New Right Capitalism exported Capitalism exported Trade, not aid Trade, not aid Fall of communism Fall of communism Ideological consensus Ideological consensus

Trade as % of GWP

Number of Regional Trade Agreements

Chapter 3: Let Them Eat Cake What is the price we pay for the triumph of global capitalism? What is the price we pay for the triumph of global capitalism? 1.“RACE TO THE BOTTOM”. In order to try to attract private investment, countries slash: 1.“RACE TO THE BOTTOM”. In order to try to attract private investment, countries slash: Environmental regulations Environmental regulations Wages Wages Welfare payments Welfare payments

Chapter 3 continued 2.Rich get richer and poor get poorer 2.Rich get richer and poor get poorer Across nations Across nations Within nations Within nations Wealth creation has become more important than wealth distribution Wealth creation has become more important than wealth distribution

Chapter 3 continued 3.Corporations manipulate governments 3.Corporations manipulate governments Governments provide “welfare” to corporations to attract their business Governments provide “welfare” to corporations to attract their business Governments are cautious in taxing international corporations Governments are cautious in taxing international corporations Afraid of losing them Afraid of losing them Not sure where they are located Not sure where they are located

Wealth by Region

Chapter 4 Manning the Door … Corporations even have governments spying for them, so that they will be more competitive in the marketplace Corporations even have governments spying for them, so that they will be more competitive in the marketplace Corporations have governments negotiating arms sales for them … Corporations have governments negotiating arms sales for them … Many of these arms are sent to unfriendly and potentially dangerous nations Many of these arms are sent to unfriendly and potentially dangerous nations

Chapter 4 continued Western governments are often unwilling to confront other nations’ human rights violations for fear of hurting business Western governments are often unwilling to confront other nations’ human rights violations for fear of hurting business There is a “trade encourages democracy” mentality … but is there evidence There is a “trade encourages democracy” mentality … but is there evidence And, the degree to which this logic is followed depends on the economic importance of the trading partner And, the degree to which this logic is followed depends on the economic importance of the trading partner

Chapter 4 continued What we have are Western governments evaluating trade, sanctions, and human rights on purely economic rather than ethical grounds What we have are Western governments evaluating trade, sanctions, and human rights on purely economic rather than ethical grounds