This is a series of posts in which I talk about simple things but extend my commentary on the simple things to several paragraphs, thus making them more complex.
It seems clear, I think, to most people, that when a thing does not work, it is not working. If your motorised trebuchet does not work then it is failing to throw rocks at the Palace of Westminster and we can all agree that it is not working as a motorised trebuchet should.
When people say that capitalism is not working – and I have heard various people say just this lately – the point tends to be more controversial. The reasons why it is controversial (besides the definition of capitalism) are interesting. Firstly, let’s complicate this further, since that is the task of these posts.
In my experience people tend to mean two quite different and separate things when they say ‘capitalism isn’t working’. They either mean (a) It isn’t working as it should right now or (b) It has never worked. The former gets more sympathy at the moment, because a lot of people in the UK are getting poorer right now.
So this statement (a) is clearly true on one level, in that we experience the lowered standard of living brought about, apparently, by some of the lynchpins of the capitalist system. But the implication of it is that the system can be fixed.
But let me put a third point of view. Let’s call it (c). This viewpoint says (c) capitalism is working just fine thanks, and we just have a few glitches to iron out. And here is the evidence for that point of view:
What this exposes for me is that the question of whether capitalism works is, unlike a motorised trebuchet, a matter of your point of view. That graph is from the US but last year in the UK wages for most people stayed flat or even fell, while CEOs picked up 30% pay rises – as they have been doing all through the credit crisis and recession (including the current recession they are pretending isn’t happening because certain growth figures don’t technically say it is yet). I also suspect that not shown on this graph is a 9% or so who have had rising incomes (though not as steep) either as owners of property and capital on a smaller scale or as high level managers of various types – managers and salesmen to those with the real money.
So now we see that statement (a) – capitalism isn’t working right now – is possibly largely from the point of view of people who have felt they have benefited from it in the past. Capitalism working ‘as it should’ means capitalism working for them.
Meanwhile statement (b) – capitalism has never worked – must come from another viewpoint once again. In my case it is usually from the viewpoint of the very large number of people in the world who live in poverty while we clearly have the technology and resources to prevent the situation. I feel a little bit unsympathetic to the people who claim (a), because they just got saddled with the kind of ‘austerity measures’ (corporate bonanza) that ‘we’ (our glorious leaders) used to force on poor countries. So now suddenly capitalism isn’t working. But there were other ways of looking at it all along, no?
Capitalism: not a motorised trebuchet.