Silent TakeoverSilent Takeover

Hertz’s PositionHertz’s Position

Not anti-capitalistNot anti-capitalist Not anti-businessNot anti-business Also not necessarily pro-governmentAlso not necessarily pro-government Is pro-people, pro-democracy, pro-Is pro-people, pro-democracy, pro-

justice (economic and social justice)justice (economic and social justice) Questions moral justification for big Questions moral justification for big

capitalismcapitalism Big capitalism weakens democracy and Big capitalism weakens democracy and

co-opts the stateco-opts the state

So … Capitalism is KingSo … Capitalism is King

““End of History” and capitalism seems to End of History” and capitalism seems to have wonhave won

No alternative economic systems are being No alternative economic systems are being seriously discussedseriously discussed

Corporations control huge amounts of Corporations control huge amounts of wealthwealth

We are being “taken over” by We are being “taken over” by corporationscorporations It is a silent take over and it is not goodIt is a silent take over and it is not good

How did we get to this?How did we get to this?

Post-WWII: the triumph of KeynesianismPost-WWII: the triumph of Keynesianism Economic crisis of 1970s caused a Economic crisis of 1970s caused a

rethinkingrethinking How can we have unemployment and inflation?How can we have unemployment and inflation?

Rise of the New RightRise of the New Right Capitalism exportedCapitalism exported

Trade, not aidTrade, not aid Fall of communismFall of communism

Ideological consensusIdeological consensus

Trade as % of GWP

Number of Regional Trade Agreements

Chapter 3: Let Them Eat Chapter 3: Let Them Eat CakeCake

What is the price we pay for the What is the price we pay for the triumph of global capitalism?triumph of global capitalism?

1.1. “RACE TO THE BOTTOM”. In “RACE TO THE BOTTOM”. In order to try to attract private order to try to attract private investment, countries slash:investment, countries slash: Environmental regulationsEnvironmental regulations WagesWages Welfare paymentsWelfare payments

Chapter 3 continuedChapter 3 continued

2.2. Rich get richer and poor get Rich get richer and poor get poorerpoorer Across nationsAcross nations Within nationsWithin nations

Wealth creation has become more Wealth creation has become more important than wealth distributionimportant than wealth distribution

Chapter 3 Chapter 3 continuedcontinued

3.3. Corporations manipulate Corporations manipulate governmentsgovernments

Governments provide “welfare” to Governments provide “welfare” to corporations to attract their businesscorporations to attract their business

Governments are cautious in taxing Governments are cautious in taxing international corporationsinternational corporations Afraid of losing themAfraid of losing them Not sure where they are located Not sure where they are located

Wealth by Region

Chapter 4 Manning the Chapter 4 Manning the Door …Door …

Corporations even have Corporations even have governments spying for them, so governments spying for them, so that they will be more competitive in that they will be more competitive in the marketplacethe marketplace

Corporations have governments Corporations have governments negotiating arms sales for them … negotiating arms sales for them …

Many of these arms are sent to Many of these arms are sent to unfriendly and potentially dangerous unfriendly and potentially dangerous nationsnations

Chapter 4 Chapter 4 continuedcontinued

Western governments are often Western governments are often unwilling to confront other nations’ unwilling to confront other nations’ human rights violations for fear of human rights violations for fear of hurting businesshurting business

There is a “trade encourages There is a “trade encourages democracy” mentality … but is there democracy” mentality … but is there evidenceevidence

And, the degree to which this logic is And, the degree to which this logic is followed depends on the economic followed depends on the economic importance of the trading partnerimportance of the trading partner

Chapter 4 Chapter 4 continuedcontinued

What we have are Western What we have are Western governments evaluating trade, governments evaluating trade, sanctions, and human rights on sanctions, and human rights on purely economic rather than ethical purely economic rather than ethical groundsgrounds