The Capitalism Papers : Fatal Flaws of an Obsolete System

312 Pages·2013·1.92 MB·English

by  Mander

THE CAPITALISM PAPERS
THE
CAPITALISM
PAPERS
Fatal Flaws of
an Obsolete System
JERRY MANDER
COUNTERPOINT
B E R K E L E Y
Copyright © Jerry Mander 2012
All rights reserved under International and Pan-American Copyright Conventions. No part of this book may
be used or reproduced in any manner whatsoever without written permission from the publisher, except in
the case of brief quotations embodied in critical articles and reviews.
Interior design by David Bullen Cover design by Michel Vrana Library of Congress Cataloging-in-
Publication Data is available ISBN 978-1-61902-218-8
COUNTERPOINT
1919 Fifth Street
Berkeley, CA 94710
www.counterpointpress.com
Distributed by Publishers Group West 10 9 8 7 6 5 4 3 2 1
This book is dedicated to the memory of my friend and colleague Edward
(Teddy) Goldsmith, visionary, activist, compassionate inspirational leader, and
the most charming, inclusive, kindest, and entertaining man I ever met. He knew
everything in this book long before I did.
Table of Contents
PART ONE: INTRODUCTION
I. Economic Succession
THE MISSING LINK
THE “C”-WORD
THIS BOOK
Disclaimer
Structural Arguments
II. Growing Up Global
A NEW WORLD ORDER
FROM YONKERS TO WHARTON
NEW DAWN FOR BUSINESS
ROBERT MCNAMARA, ENFORCER
FORTY YEARS LATER
III. The Copenhagen Conundrum
CARBON DEBT
COCHABAMBA, BOLIVIA
THE CANCÚN CONUNDRUM
THE MORALES CONUNDRUM
PART TWO: THE FATAL FLAWS OF CAPITALISM
IV. Intrinsic Amorality & Corporate Schizophrenia
IS GREED GOOD?
EVERYDAY LIFE IN ADVERTISING
ARE CORPORATIONS PEOPLE?
CORPORATIONS ARE MACHINES
V. Intrinsic Inequities of Corporate Structure
EIGHT INTRINSIC INEQUITIES OF CORPORATE STRUCTURE
1. Profits from Business Operation
2. Profits from Capitalization of the Public Commons
3. CEO Megasalaries & Bonuses
4. Stock Payments & Dividends
5. Invested Earnings: The Multiplier Effect
6. Wage Repression of Employees
7. The “Worker Productivity” Scam
8. Cashing Out: The Sale of Company Assets
THE ILLUSION OF CORPORATE “EFFICIENCY”
VI. Endless Growth on a Finite Planet
ECOSYSTEM INTO ECONOMY
Gross Domestic Product (GDP)
What’s Left Out of GDP?
Virtual Growth
“PLANETARY BOUNDARIES”
Resource Shrinkage on a Finite Planet
Financial Speculation in Food Supplies
Privatization of Water
Peak Species & Peak Beauty
EARTH ISLAND
FUNDAMENTAL QUESTIONS
VII. Searching for Growth: Desperate Measures
SEVEN EXPLORATIONS IN GROWING GROWTH
1. Shifting from Real Growth to Virtual
2. Creating “New Resources”—Privatizing the Commons
3. Expanding the Military Economy
4. Green Capitalism
5. Search for Green Energy
6. Creative Destruction
7. Techno-Utopianism & New Nature
VIII. Propensity Toward War
WAR AS ECONOMIC STRATEGY
THE STEALTH ECONOMY
DOING THE NUMBERS
COMMERCIAL ARMS TRADE
MILITARY KEYNESIANISM
F-35 Lightning II Fighter: $325 billion (Lockheed Martin Corporation)
Gerald Ford–Class Supercarrier: $120 billion (Northrop Grumman Corporation)
Future Combat System: $340 billion (Boeing and SAIC)
Littoral Combat Ship: $38 billion (Austal USA and Lockheed Martin)
U.S. MILITARY BASES
Asia Pacific
Western Europe
Middle East
Africa
South America
FOCUS ON THE PACIFIC
“COMPARATIVE ADVANTAGE” OF WAR
IX. Privatization of Democracy
RULE BY THE RICH
DOING THE NUMBERS
WHAT IS A BILLION DOLLARS?
THE “PROBLEM” OF SURPLUS CAPITAL
INVESTMENTS IN GOVERNMENT
POLITICIANS FOR SALE
KOCH BROTHERS: ROLE MODELS FOR NEOFEUDAL EXPRESSION
DEMOCRACY?
X. Privatization of Consciousness
WHO NEEDS ADVERTISING?
LIVING INSIDE MEDIA
Advertising to Children
Global Reach
THE POWERS OF RECEIVED IMAGES
Are You Immune?
Is Television Real?
“Truth” in Advertising
Virtual Reality
GLOBAL CONTROL
AOL–Time Warner
Disney
The News Corporation
CRISIS POINT
XI. Capitalism or Happiness
LAISSEZ-FAIRE
DOING THE NUMBERS
CONSEQUENCES OF INEQUITY
ECONOMICS OF HAPPINESS
SUFFICIENCY
SUMMARIES & AFTERTHOUGHTS
PART THREE: EPILOGUE
XII. Which Way Out?
FOUR MEGASHIFTS TOWARD A NEW ECONOMICS
1. Nature Comes First
2. The Primacy of Scale: Not Globalization, Localization
3. Experiments in Corporate Values and Structure
4. Hybrid Economics
UNCHARTED TERRITORY
Bibliography
Organizations
Acknowledgments