FacebookTwitterGoogle+RedditEmail

Capitalism’s Barren Landscape

by DEEPAK TRIPATHI

A few days before the annual gathering of business and political elites at the World Economic Forum at Davos, the British prime minister David Cameron set out his vision of capitalism that is popular and responsible. At a time of acute crisis, Cameron put up a staunch defense of capitalism. He asserted his belief that open markets and free enterprise were the best imaginable force for improving human wealth and happiness. He described them as the engine of progress to lift people out of poverty and give them opportunity. “When open markets work properly,” he said, “they create morality, because there is something for something.”

Can today’s capitalism be responsible? Can it be popular in the sense that people in great numbers embrace it and benefit in a fair way? Distinguished British Marxist historian Eric Hobsbawm does not think so. In a sharp critique, Hobsbawm made the point that capitalism as practiced in the last 40 years was all about growth and profit and not much else.

The “trickle-down theory” associated with free enterprise and open markets has failed. We have again entered an era of mass unemployment, poverty, malnutrition and
disease, and wars. The root cause of inequalities lies in the fact that the powerful in society have engineered systems that suck most of the wealth up rather than allow it to trickle down. Capitalism has become a distorted and twisted version of Adam Smith’s original idea.

Technological advances, particularly since the 1970s, have massively and rapidly altered the capitalist system in one crucial respect. As Hobsbawm suggested, computers and robots have created a large surplus of people around the globe. And capitalism, which is about growth, profit and speed of production, is unable and unwilling to deal with the surplus of humans.

Agriculture, automobile and shipbuilding industries once employed workers in their millions or more. Today, they employ a tiny proportion of the population. Feudalism, which preceded modern capitalism, and communism, which competed with it, engaged many more people. Communism failed because, despite all its idealism, it was conservative, nationalistic and coercive. The capitalist system suffers from the same type of orthodoxy today. It is polluted by narrow individualism and nationalism.

In Britain, with business closures and job cuts in the private and public sectors, three million unemployed and many more under-employed or simply staying home, Prime Minister David Cameron’s message to people is, “Don’t complain about welfare cuts, go and find work.”

Profit-driven manufacturing practices and outsourcing have brought about a collapse of the job market. To tell vulnerable people to “go and find work” is a contradiction in itself. It is a serious dereliction of responsibility by politicians who are viewed by many to have contributed to the present crisis.

Once fertile landscape of capitalism, the United States and Europe, is barren. The race for control of energy resources is increasingly desperate, affecting foes and friends alike. The new cold war around Iran and the Persian Gulf has escalated to a point where China, India and Russia, three main Eastern powers, are drawn into open confrontation with America and the European Union.

The Eastern powers are refusing to obey the Western sanctions regime against Iran, driven by U.S. law and outside the United Nations. Washington’s offer to compensate the Iranian supplies lost with extra crude from Saudi Arabia and other U.S. allies will inevitably give the United States more leverage on energy supplies to China and India. These countries find it unacceptable.

The world’s only superpower is no longer credible if it cannot force others to follow its writ. But that scenario is before us, because capitalism has become irrational and sick. It is looking to transfer the cost of securing its own interests to others who are not prepared to accept that cost. In a candid admission, the Chinese ambassador in Britain, Liu Xiaoming, said that his government had to think of nearly half of China’s 1.3 billion population living in the countryside, and more than 150 million people earning as little as a dollar a day.

Like China’s overall growth in percentage terms, India’s growth, too, is impressive. The proportion of Indians living below the poverty line has dropped from about 60 to 40 percent in two decades. But the story it tells is partial. The latest available World Bank data shows nearly half a billion Indians living below the international poverty line of 1.25 dollars per day, and their number is not falling. Half of the children are underweight and 45 percent under the age of three suffer from malnutrition.

Inequalities have worsened alarmingly while corporate predators like Wal-Mart make an aggressive push into China and India. The gap between India’s richest and poorest states is nearly three-and-a-half times. As a result of government policies, there have been dramatic rises in the prices of hybrid seeds and fertilizers. In a country where 60 percent of the population is directly or indirectly dependent on agriculture, more than 200000 farmers in debt have committed suicide in the last 15 years. And the number continues to rise.

The India government’s recent move that would have given unprecedented access to mega retail houses like Wal-Mart to the middle-class market, amid widely feared consequences for small farmers and merchants, had to be put off, at least temporarily, following a huge national outcry.

In their anxiety to move India from the Soviet-style economic model to the U.S. model, and haste to transform the country into a superpower, successive governments in Delhi have been tempted to go to very significant lengths. But the capitalist model has become distorted and twisted. Having wreaked havoc at home, free-market capitalism seeks to penetrate societies where many more vulnerable people need greater protection. Only governments acting responsibly can provide that safeguard.

DEEPAK TRIPATHI is the author of Breeding Ground: Afghanistan and the Origins of Islamist Terrorism (Potomac Books, Incorporated, Washington, D.C., 2011) and Overcoming the Bush Legacy in Iraq and Afghanistan (also Potomac, 2010). His works can be found at: http://deepaktripathi.wordpress.com and he can be reached at:dandatripathi@gmail.com

 

Deepak Tripathi is a Fellow of the Royal Historical Society and the Royal Asiatic Society of Great Britain and Ireland. His works can be found at: http://deepaktripathi.wordpress.com and he can be reached at deepak.tripathi.writer@gmail.com.

More articles by:
Weekend Edition
July 22, 2016
Friday - Sunday
Jeffrey St. Clair
Good as Goldman: Hillary and Wall Street
Joseph E. Lowndes
From Silent Majority to White-Hot Rage: Observations from Cleveland
Paul Street
Political Correctness: Handle with Care
Richard Moser
Actions Express Priorities: 40 Years of Failed Lesser Evil Voting
Eric Draitser
Hillary and Tim Kaine: a Match Made on Wall Street
Conn Hallinan
The Big Boom: Nukes And NATO
Ron Jacobs
Exacerbate the Split in the Ruling Class
Jill Stein
After US Airstrikes Kill 73 in Syria, It’s Time to End Military Assaults that Breed Terrorism
Jack Rasmus
Trump, Trade and Working Class Discontent
John Feffer
Could a Military Coup Happen Here?
Jeffrey St. Clair
Late Night, Wine-Soaked Thoughts on Trump’s Jeremiad
Andrew Levine
Vice Presidents: What Are They Good For?
Michael Lukas
Law, Order, and the Disciplining of Black Bodies at the Republican National Convention
David Swanson
Top 10 Reasons Why It’s Just Fine for U.S. to Blow Up Children
Victor Grossman
Horror News, This Time From Munich
Margaret Kimberley
Gavin Long’s Last Words
Mark Weisbrot
Confidence and the Degradation of Brazil
Brian Cloughley
Boris Johnson: Britain’s Lying Buffoon
Lawrence Reichard
A Global Crossroad
Kevin Schwartz
Beyond 28 Pages: Saudi Arabia and the West
Charles Pierson
The Courage of Kalyn Chapman James
Michael Brenner
Terrorism Redux
Bruce Lerro
Being Inconvenienced While Minding My Own Business: Liberals and the Social Contract Theory of Violence
Mark Dunbar
The Politics of Jeremy Corbyn
Binoy Kampmark
Laura Ingraham and Trumpism
Uri Avnery
The Great Rift
Nicholas Buccola
What’s the Matter with What Ted Said?
Aidan O'Brien
Thank Allah for Western Democracy, Despondency and Defeat
Joseph Natoli
The Politics of Crazy and Stupid
Sher Ali Khan
Empirocracy
Nauman Sadiq
A House Divided: Turkey’s Failed Coup Plot
Franklin Lamb
A Roadmap for Lebanon to Grant Civil Rights for Palestinian Refugees in Lebanon
Colin Todhunter
Power and the Bomb: Conducting International Relations with the Threat of Mass Murder
Michael Barker
UK Labour’s Rightwing Select Corporate Lobbyist to Oppose Jeremy Corbyn
Graham Peebles
Brexit, Trump and Lots of Anger
Anhvinh Doanvo
Civilian Deaths, Iraq, Syria, ISIS and Drones
Christopher Brauchli
Kansas and the Phantom Voters
Peter Lee
Gavin Long’s Manifesto and the Politics of “Terrorism”
Missy Comley Beattie
An Alarmingly Ignorant Fuck
Robert Koehler
Volatile America
Adam Vogal
Why Black Lives Matter To Me
Raouf Halaby
It Is Not Plagiarism, Y’all
Rev. Jeff Hood
Deliver Us From Babel
Frances Madeson
Juvenile Life Without Parole, Captured in ‘Natural Life’
Charles R. Larson
Review: Han Kang’s “The Vegetarian”
FacebookTwitterGoogle+RedditEmail