Jeffrey
Sachs makes it difficult for any libertarians who happen to look at his book,
‘The Price of Civilization’, to consider seriously his claim that powerful
corporate interests have excessive influence in America. He claims that libertarians
‘hold that the only ethical value that matters is liberty, meaning the right of
each individual to be left alone by others and by the government’.
There are a
lot of other ethical values that matter to me – and probably to most others who
view themselves as libertarians. In my view, liberty deserves primacy only
because it makes it possible for people to live in peace – with minimal coercion
of one person or group by another.
Perhaps I am
excessively naïve, but it seems to me that anyone who is concerned that people
are being manipulated by corporate propaganda might see libertarians as
potential allies. Can a case for individuals to be protected from techniques of
persuasion that undermine individual sovereignty be argued along similar lines
as the case for laws to protect against force and fraud? If it could be, I
imagine many libertarians would support additional action to protect individual
sovereignty.
Why does
Jeff Sachs think that corporate interests have too much influence in America? Dr
Sachs, the clinical economist, identifies a range of symptoms. The media is
privately owned and funded by advertising revenue. Corporate interests generate
propaganda which the media disseminates. Corporate interests largely fund
campaigns of candidates for political office. People spend a lot of time
watching electronic media.
Sachs writes:
‘The
relentless streams of images and media messages that confront us daily are
professionally designed to distort our most important decision making
processes. We are encouraged to act on fantasy instead of reason’.
Cartoon by
Nicholson from “The Australian”
newspaper: www.nicholsoncartoons.com.au
Sachs claims
that America has become a corporatocracy – a political system in which powerful
corporate interests dominate the political agenda. As he sees it:
‘The media,
major corporate interests, and politicians now constitute a seamless web of
interconnections and power designed to perpetuate itself through the
manufacture of illusion’.
So, some
readers may ask, does this explain why Americans no longer see much merit in
equality of opportunity, don’t think governments should do more to help people
in need and don’t think the rich should pay more tax? No! Dr Sachs actually
cites evidence that a high proportion of Americans still want more equality of
opportunity, favour more help for those in real need who are prepared to help
themselves and favour taxing the rich more heavily.
Where does
that leave Dr Sach’s diagnosis? I’m not sure. Perhaps the disease has not
progressed very far at this stage. Sachs claims that the patient is suffering
from a disconnection between shared values and national politics. He sees the
disconnection as arising from various aspects of the political system that
enhance the power of corporate interests – particularly the military industrial
complex, Wall Street, big oil and transport, and health care.
Jeff Sachs
has left me as confused as ever about the American political system. He has not
persuaded me that America is a corporatocracy. Corporate interests are powerful
in America, but so is religion, the teaching profession, environmentalists, etc.,
etc.
It seems to
me to be the main problem in American politics, which is shared by other modern
societies, is the trivialization of politics by media that is primarily in the
business of selling entertainment. The media can’t be expected to evaluate the
claims made by interest groups, but if journalists have access to such
evaluations from respected sources they can hold politicians to account for the
views they express (or fail to express). Think tanks perform the task of policy
evaluation to some extent, but can be too easily dismissed because they are not
seen to be above interest group politics. Paradoxically, the government itself
is the only organization capable of creating sources of policy advice that are sufficiently
above interest group politics to have some hope of commanding widespread
respect in the community at large.
Despite the
reservations I have about ‘The Price of Civilization’ (in an earlier post about taxation levels as well as here) I want to end this post on a positive note. I
strongly endorse Jeff’s view that individuals can benefit themselves and the societies
in which they live by making efforts to become more mindful. We will do less
harm and may do a lot of good if we become more moderate in our habits, achieve
more balance in our lives, improve our knowledge, exercise more compassion,
have more regard for the effects of our actions on the environment and future
generations, consider how we can promote more constructive political
deliberations and be more accepting of diversity as the path to peace.
Libertarians are about the only people who believe that corporations are not centers of political power, I suspect mainly because of their reductionist definition of power as "force or fraud." Anyone who's signed a boilerplate contract or all the invasive credit check stuff that is part of any employment application knows that the nature of power is not as simple as libertarians make it out to be. Those libertarians (many of whom are left-libertarians, or "mutualists") who are wising up to the fact that America is a nation in which corporations hold the cards are framing the issue of corporate power not in terms of advertising being fraud (which I think is a weak case anyway), but in terms of lobbying being rent seeking, a fact which is becoming obvious to large portions of the mainstream right and left.
ReplyDeleteIt should also be noted that self-identifying as libertarian is quite fashionable in the USA right now, sometimes among people who have no idea what they're talking about.
ReplyDeleteHi Lorraine
ReplyDeleteWelcome back!
Rent seeking plays a big role in Jeff Sach's corporatocracy model.
However, it seemed to me (as a fairly ignorant outsider) that he may exaggerate the power of the industries on his list.
I would like to see a more balanced account of the relative influence of all the groups that seek political influence.
The point in your second comment about conservatives embracing Ayn Rand is very interesting. Some of them might have an epiphany!
OK, now even I'll grant you that advertizing per se contains not even a hint of coercion, but surely you'll grant that there's way too much spam in the blogosphere.
ReplyDeleteYes Lorraine, there is way too much spam in the blogosphere. I tend to ignore comments such as those by Marketing Business. Perhaps I should delete them.
ReplyDeleteYes! we live in an era of corporatism. This is worth a look: http://www.youtube.com/watch?v=gIcqb9hHQ3E
ReplyDeleteHi Nicky
ReplyDeleteI'm not sure what it means to get the money out of politics. You can ban all campaign donations from corporations and unions, but that doesn't stop them from running media campaigns to push their own interests.
I think they can probably have much the same influence as now by presenting messages to voters along the lines that industry X is a big employer in this region, so be careful how you cast your vote.
It seems to me that the more important problem in the US may be that the system doesn't impose much party discipline. Voters don't know who to blame for what goes wrong.
No, the more important problem in the US is what you pointed out: "I think they can probably have much the same influence as now by presenting messages to voters along the lines that industry X is a big employer in this region, so be careful how you cast your vote." If people need business more than business needs people, then business has the power. And yes, the old saw about the fact that power corrupts definitely applies to the private sector.
ReplyDeleteHere is an article from Market Watch which is interesting and related to money in politics:
ReplyDeleteA nation of suckers
Commentary: Nancy Pelosi, Spencer Bachus and me
By Brett Arends, MarketWatch
SALT LAKE CITY (MarketWatch) — I’m an idiot.
After watching the “60 Minutes” expose of insider-dealing by members of Congress, I’m left wondering (not for the first time, I might add): Why on Earth did I choose journalism as a career? Watch the “60 Minutes” report.
Apparently we might be the only people in public life who aren’t on the take.
Yes, I know, it’s easy to be cynical. People assume we are all “up to it,” and scandals like the one now breaking on Capitol Hill just add to that assumption.
But it’s not true. If any reporter were caught doing the things alleged against some members of Congress, they’d be out. Canned. That afternoon. And they’d be barred from the industry for life. They’d be serving soy lattes for the rest of their days.
Spencer Bachus was shorting stocks during the financial crisis? As a reporter for Dow Jones, I’m not allowed to short stocks or own derivatives at all.
I’m not allowed to own any stock or bond I cover. Indeed, it is very difficult for me to own even an open-ended mutual fund I might write about. I would have loved to invest in Charles de Vaulx’s IVA Worldwide (MFD:IVWAX) fund, or in the Appleseed Fund (MFD:APPLX) run by the Strauss brothers. But these money managers are excellent sources for my articles, so the wisest thing has been, alas, for me to steer clear.
The rules make it very difficult for me to invest at all. When I became a full-time investment writer five years ago, I had to sell all my stocks. That meant selling my Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) and my Amazon.com(NASDAQ:AMZN) Inc. I hate to think how much it’s cost me in lost profits. I have a horrible feeling that if I ever worked it out, I’d discover I have effectively been working for free.
Meanwhile, it turns out many of the people on Capitol Hill are just “oiling the wheel” without any compunction at all.
Sweetheart deals. Insider trading. Loading up in IPOs. It defies belief that Nancy Pelosi and her husband can own a ton of Visa (NYSE:V) stock while she is legislating on credit cards. I can’t own Visa stock while I am writing about credit cards. What is wrong with our country?
They used to joke that politics was “showbusiness for ugly people.” Turns out it’s also the hedge-fund business for
stupid people. Corrupt, greedy and immoral to a degree it’s hard to imagine.
And here we are, you and I, just working for a living. What are we? A nation of suckers, that’s what.
An interesting article on the 'money in politics' from Market Watch
ReplyDeleteA nation of suckers
Commentary: Nancy Pelosi, Spencer Bachus and me
By Brett Arends, MarketWatch
SALT LAKE CITY (MarketWatch) — I’m an idiot.
After watching the “60 Minutes” expose of insider-dealing by members of Congress, I’m left wondering (not for the first time, I might add): Why on Earth did I choose journalism as a career? Watch the “60 Minutes” report.
Apparently we might be the only people in public life who aren’t on the take.
Yes, I know, it’s easy to be cynical. People assume we are all “up to it,” and scandals like the one now breaking on Capitol Hill just add to that assumption.
But it’s not true. If any reporter were caught doing the things alleged against some members of Congress, they’d be out. Canned. That afternoon. And they’d be barred from the industry for life. They’d be serving soy lattes for the rest of their days.
Spencer Bachus was shorting stocks during the financial crisis? As a reporter for Dow Jones, I’m not allowed to short stocks or own derivatives at all.
I’m not allowed to own any stock or bond I cover. Indeed, it is very difficult for me to own even an open-ended mutual fund I might write about. I would have loved to invest in Charles de Vaulx’s IVA Worldwide (MFD:IVWAX) fund, or in the Appleseed Fund (MFD:APPLX) run by the Strauss brothers. But these money managers are excellent sources for my articles, so the wisest thing has been, alas, for me to steer clear.
The rules make it very difficult for me to invest at all. When I became a full-time investment writer five years ago, I had to sell all my stocks. That meant selling my Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) and my Amazon.com(NASDAQ:AMZN) Inc. I hate to think how much it’s cost me in lost profits. I have a horrible feeling that if I ever worked it out, I’d discover I have effectively been working for free.
Meanwhile, it turns out many of the people on Capitol Hill are just “oiling the wheel” without any compunction at all.
Sweetheart deals. Insider trading. Loading up in IPOs. It defies belief that Nancy Pelosi and her husband can own a ton of Visa (NYSE:V) stock while she is legislating on credit cards. I can’t own Visa stock while I am writing about credit cards. What is wrong with our country?
They used to joke that politics was “showbusiness for ugly people.” Turns out it’s also the hedge-fund business for
stupid people. Corrupt, greedy and immoral to a degree it’s hard to imagine.
And here we are, you and I, just working for a living. What are we? A nation of suckers, that’s what.
Nicky, I liked the article. It is interesting that journalists are expected to meet higher ethical standards than politicians.
ReplyDeleteThanks Winton. I think a of people are waking up to the systemic corruption in politics.
ReplyDeleteAlso did you know that the Federal Reserve of America is a private company that has never been audited? They have the monopoly on printing the US dollar. I found this out last month and my view of the world has shifted dramatically!
Nicky, I didn't know about the auditing.
ReplyDeleteIf it is true I imagine that the accounts are subject to independent scrutiny in other ways to ensure that they are accurate.
Winton, I suggest you watch this: http://www.youtube.com/watch?v=bhMacPvc5qc&feature=youtu.be
ReplyDeleteThat's what I love about conspiracy theorists. They are to the marketplace of ideas what MLM's are to the marketplace of consumer products. You think you're having a normal conversation with a normal friend, acquaintance or stranger, and when you least expect it, it hits you: Oh, by the way, this is a conversation about Amway, The Federal Reserve, etc.
ReplyDeletehttp://www.leftbusinessobserver.com/Web_of_nonsense.html
This is very entertaining viewing. http://www.youtube.com/watch?v=8QRltaZFizo
ReplyDeleteA good read: http://www.unitedliberty.org/articles/9040-federal-reserve-is-conflicted-and-interested
ReplyDeleteAn article from The Independent on the expansion of The Goldman Sachs project:
ReplyDeletehttp://www.independent.co.uk/news/business/analysis-and-features/what-price-the-new-democracy-goldman-sachs-conquers-europe-6264091.html
The movement of people from big banks to government and back certainly doesn't look good.
ReplyDeleteFortunately, that hasn't happened to the same extent in Australia. People move out of senior positions in Treasuryand the Reserve Bank to take up positions in the finance sector -but there isn't much movement in the other direction.