Reimagining Capitalism Again, Part III: Reflections on Greider’s “Bold Ideas” in The Nation

And so, The Nation’s “Bold Ideas for a New Economy” is disappointing for not doing more to start from the beginning identified by its own writer, William Greider. The soul of capitalism needs to be celebrated and nourished, if we are to make our economy “less destructive and domineering,” and “more focused on what people really need for fulfilling lives.” The only real alternative to celebrating and nourishing the soul of capitalism is to kill it, in the manner of the Soviet Union’s failed experiments in socialism and communism.

The article speaks the truth, though, when it says there is no point in trying to persuade the powers that be to make the needed changes. Republicans see the market as it exists as a one-size-fits-all economic panacea, when all it can accomplish in its current incomplete state is the continuing externalization of anything and everything important about human, social, and environmental decency. For their part, Democrats do indeed “insist that regulation will somehow fix whatever is broken,” in an ever-expanding socialistic micromanagement of every possible exception to the rules that emerges.

To date, the president’s efforts at a nonpartisan third way amount only to vacillations between these opposing poles. The leadership that is needed, however, is something else altogether. Yes, as The Nation article says, capitalism needs to be made to serve the interests of society, and this will require deep structural change, not just new policies. But none of the contributors of the “bold ideas” presented propose deep structural changes of a kind that actually gets at the soul of capitalism. All of the suggestions are ultimately just new policies tweaking superficial aspects of the economy in mechanical, static, and very limited ways.

The article calls for “Democratizing reforms that will compel business and finance to share decision-making and distribute rewards more fairly.” It says the vision has different names but “the essence is a fundamental redistribution of power and money.” But corporate distortions of liability law, the introduction of boardroom watchdogs, and a tax on financial speculation do not by any stretch of the imagination address the root causes of social and environmental irresponsibility in business. They “sound like obscure technical fixes” because that’s what they are. The same thing goes for low-cost lending from public banks, the double or triple bottom lines of Benefit Corporations, new anti-trust laws, calls for “open information” policies, added personal stakes for big-time CEOs, employee ownership plans, the elimination of tax subsidies for, new standards for sound investing, new measures of GDP, and government guarantees of full employment.

All of these proposals sound like what ought to be the effects and outcomes of efforts addressing the root causes of capitalisms’ shortcomings. Instead, they are band aids applied to scratched fingers and arms when multiple by-pass surgery is called for. That is, what we need is to understand how to bring the spirit of capitalism to life in the new domains of human, social, and environmental interests, but what we’re getting are nothing but more of the same piecemeal ways of moving around the deck chairs on the Titanic.

There is some truth in the assertion that what really needs reinventing is our moral and spiritual imagination. As someone (Einstein or Edison?) is supposed to have put it, originality is simply a matter of having a source for an analogy no one else has considered. Ironically, the best model is often the one most taken for granted and nearest to hand. Such is the case with the two-sided scientific and economic effects of standardized units of measurement. The fundamental moral aspect here is nothing other than the Golden Rule, independently derived and offered in cultures throughout history, globally. Individualized social measurement is nothing if not a matter of determining whether others are being treated in the way you yourself would want to be treated.

And so, yes, to stress the major point of agreement with The Nation, “the new politics does not start in Washington.” Historically, at their best, governments work to keep pace with the social and technical innovations introduced by their peoples. Margaret Mead said it well a long time ago when she asserted that small groups of committed citizens are the only sources of real social change.

Not to be just one of many “advocates with bold imaginations” who wind up marginalized by the constraints of status quo politics, I claim my personal role in imagining a new economic future by tapping as deeply as I can into the positive, pre-existing structures needed for a transition into a new democratic capitalism. We learn through what we already know. Standards are well established as essential to commerce and innovation, but 90% of the capital under management in our economy—the human, social, and natural capital—lacks the standards needed for optimal market efficiency and effectiveness. An intangible assets metric system will be a vitally important way in which we extend what is right and good in the world today into new domains.

To conclude, what sets this proposal apart from those offered by The Nation and its readers hinges on our common agreement that “the most threatening challenge to capitalism is arguably the finite carrying capacity of the natural world.” The bold ideas proposed by The Nation’s readers respond to this challenge in ways that share an important feature in common: people have to understand the message and act on it. That fact dooms all of these ideas from the start. If we have to articulate and communicate a message that people then have to act on, we remain a part of the problem and not part of the solution.

As I argue in my “The Problem is the Problem” blog post of some months ago, this way of defining problems is itself the problem. That is, we can no longer think of ourselves as separate from the challenges we face. If we think we are not all implicated through and through as participants in the construction and maintenance of the problem, then we have not understood it. The bold ideas offered to date are all responses to the state of a broken system that seek to reform one or another element in the system when what we need is a whole new system.

What we need is a system that so fully embodies nature’s own ecological wisdom that the medium becomes the message. When the ground rules for economic success are put in place such that it is impossible to earn a profit without increasing stocks of human, social, and natural capital, there will be no need to spell out the details of a microregulatory structure of controlling new anti-trust laws, “open information” policies, personal stakes for big-time CEOs, employee ownership plans, the elimination of tax subsidies, etc. What we need is precisely what Greider reported from Innovest in his book: reliable, high quality information that makes human, social, and environmental issues matter financially. Situated in a context like that described by Bernstein in his 2004 The Birth of Plenty, with the relevant property rights, rule of law, scientific rationality, capital markets, and communications networks in place, it will be impossible to stop a new economic expansion of historic proportions.

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One Response to “Reimagining Capitalism Again, Part III: Reflections on Greider’s “Bold Ideas” in The Nation”

  1. With Reich in spirit, but with a different sense of the problem and its solution | Livingcapitalmetrics's Blog Says:

    […] so, to repeat another one of my ad nauseum broken record nostrums, the problem is the problem. As long as we keep defining problems in the way we always have, as matters of marshalling […]

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