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Opinion Why Did Capitalism Fail?

Discussion in 'Breaking News' started by Archived_Member16, Aug 19, 2011.

  1. Archived_Member16

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    August 19, 2011

    Why Did Capitalism Fail?

    Posted: 8/19/11 09:50 AM ET - Huffington Post

    Bob Burnett
    Berkeley writer, retired Silicon Valley executive

    We live in interesting times. The global economy is splintering. U.S. voters hate all politicians and there's political unrest throughout the world. The root cause of this turmoil is the failure of the dominant economic paradigm -- global corporate capitalism.

    The modern world is ruled by multinational corporations and governed by a capitalistic ideology that believes: Corporations are a special breed of people, motivated solely by self-interest. Corporations seek to maximize return on capital by leveraging productivity and paying the least possible amount for taxes and labor. Corporate executives pledge allegiance to their directors and shareholders. The dominant corporate perspective is short term, the current financial quarter, and the dominant corporate ethic is greed, doing whatever it takes to maximize profit.

    Five factors are responsible for the failure of global corporate capitalism. First, global corporations are too big. We're living in the age of corporate dinosaurs. (The largest multinational is JP Morgan Chase with assets of $2 Trillion, 240,000 employees, and offices in 100 countries.) The original dinosaurs perished because their huge bodies possessed tiny brains. Modern dinosaurs are failing because their massive bureaucracies possess miniscule hearts.

    Since the Reagan era global corporations have followed the path of least resistance to profit; they've swallowed up their competitors and created monopolies, which have produced humongous bureaucracies. In the short-term, scale helps corporations grow profitable, but in the long-term it makes them inflexible and difficult to manage. Gigantism creates a culture where workers are encouraged to take enormous risks in order to create greater profits; it's based upon the notion that the corporation is "too big to fail."

    Second, global corporations disdain civil society. They've created a culture of organizational narcissism, where workers pledge allegiance to the enterprise. Corporate employees live in a bubble, where they log obscene hours and then vacation with their co-workers.

    Multinationals develop their own code of ethics and worldview separate from that of any national state. Corporate executives don't care about the success or failure of any particular country, only the growth and profitability of their global corporation. (Many large corporations pay no U.S. income tax; in 2009 Exxon Mobil actually got a $156 M rebate.)

    Third, global corporations are modern outlaws, living outside the law. There is no invisible hand that regulates multinationals. In 1759 Philosopher Adam Smith argued that while wealthy individuals and corporations were motivated by self interest, an "invisible hand" was operating in the background ensuring that capitalist activities ultimately benefited society. In modern times this concept became the basis for the pronouncements of the Chicago School of Economics that markets were inherently self regulating. However, the last five years have demonstrated that there is no "invisible hand" -- unregulated markets have spelled disaster for the average person. The "recovery" of 2009-10 ensured that "too big to fail" institutions would survive and the rich would continue to be rich. Meanwhile millions of good jobs were either eliminated or replaced by low-wage jobs with poor or no benefits.

    Fourth, global corporations are ruining our natural capital. Four of the top 10 multinational corporations are energy companies, with Exxon Mobil leading the list. But there are many indications that our oil reserves are gone. Meanwhile, other forms of natural capital have been depleted -- arable land, water, minerals, forests, fish, and so forth. Multinational corporations have treated the environment as a free resource. When the timberlands of North America began to be depleted, lumber corporations moved to South America and then Asia. Now, the "easy pickings" are gone. Global corporations have ravished the world and citizens of every nation live with the consequences: dirty air, foul water, and pollution of every sort.

    Fifth, global corporations have angered the world community. The world GDP is $63 Trillion but multinational corporations garner a disproportionate share -- with banks accounting for an estimated $4 trillion (bank assets are $100 trillion). Global black markets make $2 trillion -- illegal drugs account for at least $300 billion. In many parts of the world, a worker is not able to earn a living wage, have a bank account or drive a car, but can always obtain drugs, sex, and weapons. And while the world may not be one big village in terms of lifestyle, it shares an image of "the good life" that's proffered in movies, TV, and the Internet. That's what teenagers in Afghanistan have in common with teenagers in England; they've been fed the same image of success in the global community and they know it's inaccessible. They are angry and, ultimately, their anger has the same target -- multinational corporations (and the governments that support them).

    We live in interesting times. The good news is we're witnessing the failure of global corporate capitalism. The bad news is we don't know what will replace it.

    source: http://www.huffingtonpost.com/bob-burnett/failed-capitalism-_b_931213.html?ir=Politics
     
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  3. Randip Singh

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    See the writing of Karl Marx, he predicts all this stuff. Capitalism relies on self interest rather than the interest of the collective therin is the problem.

    Nanak would say Capitalism realise Moh and Lobh therefore is doomed to fail!!
     
  4. kds1980

    kds1980 India
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    I am sorry to say but capitaisml has not failed.The article is only dealing with american crisis and not the entire world.USA became super power because of capitalism,China whose forefathers came into power by promising a communist society adopted capitalist methods and now China is super power .India which was on its way to bankruptcy in 1991 is now one of the largest growing economy because of capitalism
     
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  5. Gyani Jarnail Singh

    Gyani Jarnail Singh Malaysia
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    Its COMMUNISM that has FAILED and most miserably too...But ask the Indian variety KAMRADE...and he will point his finger to Moscow and say..hallelujah !!
    Once harkishan Surjeet hte leading Indian kamrade was seen emerging out of his house in clear weather crrying a large umbrella...why that chhatree ji.its perfect blue sky here in Delhi...a reporter asked him..OH...surjeet replied..BUT its RAINING IN MOSCOW !!
     
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  6. Ishna

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    If it is failing America, it is proof the idea is lame in the long run and to follow the same path, emerging economies are dooming themselves to failure and will encourage the rich to get richer and the working class and the environment are crushed.

    Reading the lead article, three things emerge to me:

    1. We are each of us slaves to this capitalism, as we are all giving our money to use the Internet which is run by corporations... We are using the energy produced by those massive companies every day.

    2. Self interest is an incredibly motivating force. But what are people really trying to achieve? They shackle themselves to the rat race, they hunger for money, possessions and lifestyle, but as has been mentioned in other recent threads, happiness is not generally found there.

    I am one of the most selfish people I know. That comment in itself is selfish. The thought of communal living scares the crap out of me, with other people and everything that goes along with that, the social responsibility. It is much more enjoyable to be selfish, to live moment to moment relying on the external stimuli of tv, Internet, radio... I have been well programmed to be selfish, and fit well into the capitalist consumer mould. I would like to meet someone who has evaded this insidious mind control. Maybe I should visit the Amish.

    3. As the aricle finishes, what can possibly replace this paradigm? When the world is full of consumer zombies, something drastic has to happen... And it can't possibly be pretty. What other paradigms are there by which to work? Communism obviously doesn't work although in theory is all sounds fine and dandy... It leaves out the characteristicly human elements.

    Are there any nations where something better exists? Has there ever been one in history? Is it a futile argument because humans love Maya?

    Life, the universe and everything is very complicated!
     
  7. kds1980

    kds1980 India
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    Whether it is capitalism or America's desire to dominate the world?

    USA has 600 billion $ of defence budget ,Could anyone ask USA govt why they need this size of defence budget with no enemies
     
  8. Ishna

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    I'm not sure I'd say America wants to dominate the world... It wants all the resources (see energy companies), so it can get all the money. If there are no resources, America isn't interested.

    There is a saying that "peace requires eternal vigilence" which may be a reason for America's defence budget. There is also the phenomenon that the man who thinks he has everything will think other people will want it and so becomes protective. There is also the fact that America does have enemies, it may seem they have vanquished one recently but there will surely be others. Humans can't be trusted to play well togeher.

    Also, re Anerica's defence budget, one could say Sikhs invest heavily into their defences, too (spiritually).
     
  9. kds1980

    kds1980 India
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    I am sorry to say but which country can attack america? After the collapse of Soviet There is no country in world that can even think of attacking USA.
    There is no country in world that is even claiming an inch of USA land on the other hand India is surrounded by enemies with China and Pak both claiming land from India.If USA can be afraid then India should declare emergency and should raise its defence budget 3-4 times .

    USA is only facing threats from terrorists and you don't need very advanced system of fighter planes or tanks etc The USA defence Budget and its strong military is just to show the world that who is the boss .

    And if we compare USA with Russia now we can easily see How Russian economy grown after the end of communism .Russia reduced its defence budget and private industries were allowed .So USA should look to other causes rather than blaming capitalism
     
  10. Randip Singh

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    Here is a question to you all. What would Nanak say about Capitalism? I refer to the Bhai Lalo story ofcourse :interestedsingh:
     
  11. kds1980

    kds1980 India
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    Bhai lalo's saakhi dealt more with honest living and corruption.Almost all Guru's have Businessmen followers, is there any mention in Sikhism Guru asked them to shut down their businesses and become socialist.Infact some of Guru gobind singh's hukamnaama's contain asking for various offerings

    ----------------------------------------------------------------------
    To Dharam Chand, Send by draft Rs.101 for and elephant. Give offerings to the guru, to no masand. Man or woman. Help any Sikh friends. Feb 6th 1702

    http://www.info-sikh.com/PageG82.html
    -------------------------------------------------------------------------

    It look's that bhai Dharam chand was wealthy sikh O/W how could a common man can send elephant to Guru sahib
     
  12. Ishna

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    Kds ji, the only reason no one can attack America (except covert terrorists) is because of it's defenses! Would you prefer they lower their defenses and say "the world is fine and dandy"?

    It also helps that America only has two land neighbours -- Canada and South America! India has neighbours much closer.

    I often wonder what's with that entire strip of the earth, from India through the middle east. The people there are always fighting and it's always about land. I understand the Pakistan/India argument and the Israel/Palastein argument, they were both created by the West (please correct me if I'm wrong). But the people in that part of the world are constantly fighting, by either bombing mosques or attacking each other -- is there something in the water?

    There are too many greedy humans in the world for ANY social system to function like a utopia. Humans are govered more by their vices than anything.

    KDSji, a common theme in a lot of your posts is how India is forlorn and the West is a booming and unstoppable garden of eden with capitalism and wealth for all. But where are the solutions? What would YOU LIKE TO SEE in India? How can that happen in India?
     
  13. kds1980

    kds1980 India
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    Its upto them whether they prefer large amount on the weapons which have 0.1% chance to to be used or on welfare of their people.The fact remains that No other country is spending such large amount on defence budget.Army and weapons are biggest liability in peace timke on any economy

    Middle East ,India,China Europe are old civilisations .Europeans fought some of bloddiest wars in the world Only after 45 they realised and stopped all bloodshed.Also Large number of muslims in these parts contribute to wars and destruction

    Ishna ji its a fact that life is much better in west than 3rd world.Just want to give you example an average Australian eats 108 kg meat per annum ,so for an average Australian
    meat is just a food while here for 90% + of Indians meat is luxury and delicious food which they eat once or twice ( I am talking about non veg people) week .The craze of going to outside India is now even spreading to poor states of India.

    As far capitalism is concerned we all know Almost all Pro American countries in cold war adopted capitalist methods and most of them became developed while pro soviet nations which include India adopted socialist methods almost went bankrupt in early 90s
     
  14. Ishna

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    Talk about coincidence, I stumbled upon this program on local TV today.

    My husband and I were enthralled and decided it's a very depressing program.

    The program is mostly in English with some other language subtitles, but the parts where German are spoken have English subtitles over the top, so don't worry about the other subtitles on there.

    The Light Bulb Conspiracy - English Subtitles - PART 1/4 - YouTube

    The Light Bulb Conspiracy - English Subtitles - PART 2/4 - YouTube

    The Light Bulb Conspiracy - English Subtitles - PART 3/4 - YouTube

    The Light Bulb Conspiracy - English Subtitles - PART 4/4 - YouTube
     
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  15. Ishna

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    I don't have much more to add on this line of thought except to say that you need to maintain your defenses or else you leave yourself open to attack. Also, America has been engaged in war activities for the last 10 years, it's not like they have all their soldiers sitting at home!

    And so many Australians are suffering the consequenses of their over-indulgence with obesity and other diseases like bowel cancer. Most people don't even know what else to eat. They are presented with this food and they are such consumerist zombies they just eat and eat and don't question.

    I have much compassion for people in poor parts of the world.

    But we have established there is an inequality -- what about solutions, KDS ji? Have you got any thoughts outside of the problem itself? What could India do to change itself?

    And we do have poor people in the West and homeless people. Granted, it's probably not as severe as it is in India with caste system -- people here have a chance to develop themselves, change and make a better life for themselves in society. A LOT choose not to, they prefer to live on welfare in squallor. Government gives them house, they trash it. Government gives them money for food and clothes, they spend it on drugs and alcohol.

    I still don't think capitalism is the answer, and I think we're seeing America and other capitalist countries about to feel the crunch, the failure of the system.

    As I mentioned earlier though, I don't think any system is actually going to work because humans are too human, we're not Borg.
     
  16. Randip Singh

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    We have plenty of Socialist businessmen....

    Famously Sir Alan Sugar, Manchester United manager Sir Alex Ferguson....

    ..and Guru Nanak was not talking about corruption, but exploitation....as Nanak said, one earn't his living through the sweat of his own brown, and the other through the exploitation of others...

    ..Sweden was a brillaint model for a Socialist state until the Right wingers got in a sold everything off.......IN Cuba, public services are very good, they have a loe mortality trate and a first class health service (American sanctions have not helped),

    In India the problem with Socialism is the amount of corruption there is....this gets further amplified with Capitalism....it's difficult for different systems to work.

    ..I think the key here is exploitation...
     
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  17. Randip Singh

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    ...forgot two points to note...

    1920's Depression...spectacular failure of Capitalism...

    2007 near Depression (averted by the Brown plan to liquidate the banks)...potential spectactual failure of Capitalism..
     
  18. kds1980

    kds1980 India
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    Socialist businessmen,this is new term for me here is the defination of socialism

    so·cial·ism   
    [soh-shuh-liz-uhm] Show IPA
    –noun
    1.
    a theory or system of social organization that advocates the vesting of the ownership and control of the means of production and distribution, of capital, land, etc., in the community as a whole.

    .Guru's were in Human body for 230 years is their any evidence that Guru's tried to establish Socialist society or some social reforms in Business so much better if we don't try
    to associate these theories with Guru's

    Corruption is global phenomina and much more common in developing countries.even countries like china are slightly ahead in least corruption index.Also when India got independence corruption was not much severe .Congress tried its level best to avoid america and make India a Socialist economy.Indira became more strict in these policies even went on throwing Coca cola from India,nothing worked.

    Capitalism cannot be defended on papers but harsh truth is Human nature itself is capitalistic.There is no way one can say that capitalists are wrong and then just go to mobile store to buy cheapest Mobile ,ipod etc.Most of companies just go to poor countries to exploit labour because they just want to produce cheapest goods for people
     
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  19. Harry Haller

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    Randipji

    With the greatest respect brother, if the way in which the SPGC operates is indicative of a how a sikh socialist state would operate, well thats very scary indeed, I think the question is, given the level of exploitation and corruption that exists, and that cannot be overlooked, which is the best system for everyone?
     
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  20. kds1980

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    Thanks Ishna ji for the documentry which I just saw

    But this documentry raises several questions?

    1) Along with Soviet almost half of entire world adopted communism and products were produced their.But it is always the American,japanese, or European products which were considered superior .If American industries
    were producing products that used to last not so long then Soviet products were not considered superior.

    2) The documentry did not disclose the price of bulbs which did not have long life?

    Earlier we had one PC which we purchased in 2000 and my bro bought a pc
    in 2008 .I was using the PC which we purchased in 2000 but it is my brother's PC which used to get damaged frequently.We put this question to retailer who is just like our friend ,he said " It is because of electric fluctuatons Your PC get damaged, I said but our old PC don't get damaged the he said How much you mpaid for SMPS then I said 1000 and how much you are paying now I said 600 he smile and said at that you paid 1000 which was much higher amount compared to inflation and now for 600 rupees you want same quality.He also told us that if you want then I could arrange American SMPS but it will cost 2000 but life of product will be prolonged rather than 600 rupees chinese SMPS ,me and my brother smiled and said no thanks we prefer to change it in 1-2 years rather than paying such amount.

    So longer life products are available but we all go for cheap products

    Also I want to know How many people in world have prolonged the life of their printers after watching that documentry because there could have been mass hysteria for that software
     

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