Richard Wolff gave a fascinating talk at Google offices in New York City, which is embedded below:

This talk was published nearly two years ago, demonstrating that we refuse to learn or make adjustments we need to order society better (and to avoid disaster and catastrophe). No surprise there. (Also shows how long it takes me to get to things.) Critics of capitalism and the democracy we pretend to have in the U.S. are many. Wolff criticizes effectively from a Marxist perspective (Karl Marx being among the foremost of those critics). For those who don’t have the patience to sit through Wolff’s 1.5-hour presentation, let me draw out a few details mixed with my own commentary (impossible to separate, sorry; sorry, too, for the profusion of links no one follows).

The most astounding thing to me is that Wolff admitted he made it through higher education to complete a Ph.D. in economics without a single professor assigning Marx to read or study. Quite the set of blinders his teachers wore. Happily, Wolff eventually educated himself on Marx. Multiple economic forms have each had their day: sharing, barter, feudalism, mercantilism, capitalism (including subcategories anarcho-capitalism and laissez-faire economics), Keynesian regulation, socialism (and its subcategory communism), etc. Except for the first, prevalent among indigent societies living close to subsistence, all involve hierarchy and coercion. Some regard those dynamics as just, others as unjust. It’s worth noting, too, that no system is pure. For instance, the U.S. has a blend of market capitalism and socialism. Philanthropy also figures in somehow. However, as social supports in the U.S. continue to be withdrawn and the masses are left to fend for themselves, what socialism existed as a hidden-in-plain-sight part of our system is being scaled down, privatized, foisted on charitable organizations, and/or driven out of existence.

The usual labor arrangement nearly all of us know — working for someone else for a wage/salary — is defined in Marxism as exploitation (not the lay understanding of the term) for one simple reason: all economic advantage from excess productivity of labor accrues to the business owner(s) (often a corporation). That’s the whole point of capitalism: to exploit (with some acknowledged risk) the differential between the costs of labor and materials (and increasingly, information) vs. the revenue they produce in order to prosper and grow. To some, exploitation is a dirty word, but understood from an analytical point of view, it’s the bedrock of all capitalist labor relationships. Wolff also points out that real wages in the U.S. (adjusted for inflation) have been flat for more than 40 years while productivity has climbed steadily. The differential profit (rather immense over time) has been pocketed handily by owners (billionaire having long-since replaced millionaire as an aspiration) while the average citizen/consumer has kept pace with the rising standard of living by adding women to the workforce (two or more earners per family instead of one), racking up debt, and deferring retirement.

Wolff’s antidote or cure to the dynamic of late-stage capitalism (nearly all the money being controlled by very few) is to remake corporate ownership, where a board of directors without obligation to workers makes all the important decisions and takes all the profit, into worker-owned businesses that practice direct democracy and distribute profits more equitably. How closely this resembles a coop (read: cooperative), commune, or kibbutz I cannot assess. Worker-owned businesses, no longer corporations, also differ significantly from how “socializing a business” is generally understood, i.e., a business or sector being taken over and run by the government. The U.S. Postal Service is one example. (Curiously, that last link has a .com suffix instead of .gov.) Public K–12 education operated by the states is another. As I understand it, this difference (who owns and runs an enterprise) is what lies behind democratic socialism being promoted in the progress wing of the Democratic Party. Bernie Sanders is aligning his socialist politics with worker ownership of the means of production. Wolff also promotes this approach through his book and nonprofit organization Democracy at Work. How different these projects may be lies beyond my cursory analysis.

Another alternative to capitalist hegemony is a resource-based economy, which I admit I don’t really understand. Its rank utopianism is difficult to overlook, since it doesn’t fit at all with human history, where we muddle through without much of a plan or design except perhaps for those few who discover and devise ways to game systems for self-aggrandizement and personal benefit while leaving everyone else in the lurch. Peter Joseph, founder of The Zeitgeist Movement, is among the promoters of a resource-based economy. One of its chief attributes is the disuse of money. Considering that central banks (the Federal Reserve System in the U.S.) issue fiat currency worth increasingly little are being challenged rather effectively by cryptocurrencies based on nothing beyond social consensus, it’s interesting to contemplate an alternative to astronomical levels of wealth (and its inverse: debt) that come as a result of being trapped within the fiat monetary system that benefits so very few people.

Since this is a doom blog (not much of an admission, since it’s been obvious for years now), I can’t finish up without observing that none of these economic systems appears to take into account that we’re on a countdown to self-annihilation as we draw down the irreplaceable energy resources that make the whole shebang go. It’s possible the contemplated resource-based economy does so, but I rather doubt it. A decade or more ago, much of the discussion was about peak oil, which shortly thereafter gave way to peak everything. Shortages of materials such as helium, sand, and rare earths don’t figure strongly in public sentiment so long as party balloons, construction materials, and cell phones continue to be widely available. However, ongoing destruction of the biosphere through the primary activities of industrial civilization (e.g., mining, chemical-based agriculture, and steady expansion of human habitation into formerly wild nature) and the secondary effects of anthropogenic climate change (still hotly contested but more and more obvious with each passing season) and loss of biodiversity and biomass is catching up to us. In economics, this destruction is an externality conveniently ignored or waved away while profits can be made. The fullness of time will provide proof that we’ve enjoyed an extraordinary moment in history where we figured out how to exploit a specific sort of abundance (fossil fuels) with the ironic twist that that very exploitation led to the collapse of the civilization it spawned and supported. No one planned it this way, really, and once the endgame came into view, nothing much could be done to forestall it. So we continue apace with self-destruction while celebrating its glamor and excess as innovation and progress. If only Wolff would incorporate that perspective, too.


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