Continued from
Part IWhy do some people think that severing the link between business and the state will place the former above the law?
That is the only reason I can think of for fear no.4, that deregulation will lead to corporate despotism and plutocracy. Capitalists are very clear on one thing. The Rule of Law is paramount. Treating companies like people (i.e. the corp in corporation) means, partly, subjecting them to the same law as everyone else. What is not to 'get' about this?
And yet fear of what companies might do with their supposed power is the driving force behind most, if not all, cries for 'more regulation'. Imagine if their were calls for more regulation of people? The "we want more laws"movement would be the new front organisation for the Socialist Workers Party.
The theory goes that if companies aren't regulated, they'll get away with all sorts of things like environmental destruction and child labour. Do companies get away with such things now? In Western countries, such things are closely monitored, and not by regulators but by everybody. Do-gooding busybodies are an essential part of Capitalism - although they might not see themselves as such.
Which brings me to a final point of criticism. It dismays me that such busybodies - from environmentalists to concerned citizens - don't realise that they're as much a part of that thing we call 'market forces' as anybody else. Forcing corporations to be more environmentally aware, caring towards their employees, or respectful of local communities is not anti-Capitalistic. It is simply another factor in determining the price of a given product. It feeds directly into the demand curve.
Here's why. Costa Coffee charged its customers
an extra ten pence for something called Fair Trade coffee. The fact that this 10p did not go to the coffee producer is, for the purpose of this discussion, irrelevant. 10p was the price consumers were willing to pay for the feelgood factor (which is a service rather than a commodity maybe...) of buying 'fairer' coffee, whatever that means.
Companies have long known that they are selling more than a product, they are selling a brand, a lifestyle
accoutrement, even patriotism; something intangible that goes along with the product. It has a value. So, companies
behave responsibly because the market forces them too. If only so-called antiCapitalists could grasp that simple concept. If people don't care, then companies don't either - but is that a failure of the company?
Another example is buying local. Now, I don't believe in protectionism, whereby the state forces the consumer to buy local products through tariffs and subsidies, but I do support the idea of buying from local sources at times, even if it costs more. I tend to think most people would, given the choice. Even when the market acts in a 'protectionist' manner, as long as the state doesn't do it, then it's fine. Why? because it's a choice, and choice is what capitalism is all about.
Capitalism does not mean always buying the cheapest. It is not a race to the bottom. If that were the case we would all be wearing no-name brand clothing (made in China of course) and driving Geelys (ugh). But we aren't. Consumer choice is a series of value judgments, only one of which is price. The producers' motto goes,
if the duck quacks, feed it. If the duck quacks for more environmentally-friendly, ethically-sourced, socially responsible products, that's what it'll be fed. And if it doesn't, ......
The alternative is, of course, for the government to decide what kind of products consumers
should want. Then we get the
Trabant. Or the
Chevy Volt. Why should centrally-planned "green energy" initiatives (initiatives? I mean subsidies) lead to more environmental awareness than consumer demand does?
The other reason for the Big Fear of corporate despotism is movies like The Constant Gardener, where corporations are portrayed as vampirical entities willing to kill for profit. Which sounds more like the behaviour of governments to me. Shell made an oil spill. They cleaned it up. So did Exxon. Can we expect such responsible behaviour from PetroChina? Saudi ArAmCo? How would we even know?
So it bothers me that certain anti-capitalist types think they aren't a part of Capitalism. They are, and I'd like to write a book on the subject telling them so.
So are big corporations dangerous? that's the crux of the matter. A recent response at
Indymedia to my question about who has the right to tell another they have too much money went as follows:
WE are part of a community of people for whom society was structured presumably for the greater good of everyone, and as a community, we don't think it is healthy for 5% of the people to have 40% of the wealth. I think it's perfectly reasonable to keep greed in check a little. It's a pretty ugly part of us. We keep other ugly destructive parts of ourselves in check so why not that?
The response oozes collectivist arrogance, and the assumption that the
common will easily, and without moral scruple, overrides individuals' rights. The association of wealth with "greed" is a common theme, as though greed somehow magically makes you rich (if only!). Does my greed add one cent to my annual wage?
And what of it if 5% owns 40% of the wealth if they created that wealth? Statistics prove nothing about how that state of affairs came about. Are we living in a premodern society where there is a certain fixed amount of wealth, and I have less because you have more?
And since when are "we" a "community" that somehow takes it upon itself to prevent, through sheer force of legislation, someone from doing well for themselves? Nothing says greed and selfishness more than the desire to hold others back, and to demand entitlements from anyone who has worked for something more!
It is an ugly part of us for sure. That is why "thou shalt not covet" is one of the Ten Commandments.
Get thine own ass. The desire to "redistribute" thy neighbour's stuff is what greed is all about. The buzzword for some is
inequality, which is deemed to be some sort of social ill. Let me make it clear: inequality is good. It means that freedom is working. It may also mean that some people are getting rich through "corporate welfare", but that is an entirely different issue, which Capitalists rightly condemn.
Take a look at
Forbes Billionaire list. The top three are worth around $50bn each. That's what Ireland is spending bailing out
one bank. This year, for the first time, a citizen of a developing country topped the list, Carlos Slim from Mexico. India's presence on the list is also increasing. The presence of people from developing countries can be viewed in two ways; while it is encouraging to see that the wealthiest do not come from a tiny pool of rich countries, those countries are even less likely to enforce the rules of capitalism and more likely to allow endemic corruption. Mexico, India and Brazil are not known for honesty in business, nor the discouragement of monopolies.
All fifteen on the Forbes list are wealthier than those on the
list of richest royals. It is safe to say that
earned wealth is more of a feature of the modern world than
unearned. This is progress. And how much does Bill Gates make in a year? Microsoft pays him a million dollars a year but he has other investments. Let's say he makes $500 million. That's overinflated, but it's just a figure. Ireland makes that in revenue in
2.4 days. The United States makes that in
two hours. And we're afraid of Bill Gates??
at least the northerners know how to show their concern for a persecuted people,while we are busy with the jews in contracts,of buying WEAPONS WE DO NOT NEED,OR DO WE??
HOW ABOUT BUILDING A SELLAFIELD HERE..
Do you see what the do to people of the middle east??they keep BOMBING THEM BACK TO THE STONE AGE,NO WONDER THEY ARE SO CRAZY.!