From a speech given at the One World Week Forum at the University of Warwick on January 30, 2014.
Can capitalism solve the problems of global warming and growing inequality?
It seems to me this is like discussing the issue of inappropriate hyper-sexual imagery bombarding 11-year olds and then asking: Can Justin Bieber or Lady Gaga fix the problem?
Real capitalism, not the theoretical version taught in school, is a system of minority rule in which a few people profit at the expense of others.
Real capitalists are always trying to cut their costs and increase their profits, which leads to unemployment, falling wages, rising economic disparity and not paying for the environmental damage they cause.
Private ownership of what are social means of livelihood produces incentives for capitalists to pass along the real costs of industry to communities, workers, future generations and other species.
Private ownership makes growing inequality inevitable. A system can proclaim itself democratic, but if a minority holds most of the economic, and therefore social and political power, that minority will inevitably reward itself, its power will grow and ever-expanding inequality will be the result.
Capitalism is sociopathic. Its ideologues, like the late Margaret Thatcher, reject the social, claiming only individuals exist. Yet capitalism has driven individual producers to the fringes of economies. Most people, ninety per cent in the U.K., depend on wages or salary, working with others in cooperative, coordinated labour — social labour, but directed by wealthy minorities for their own profit.
Capitalism promotes greed. It boasts of this. So why would we be surprised when a small minority with most of the power looks after itself, in effect telling the rest of us: “Screw you and the planet you live on! We don’t care about global warming because we have the money to buy a nice place regardless of how high the oceans rise.”
Capitalism requires constant growth to satisfy its need for more profit. But what happens when the environment needs a smaller human footprint? When, at least in wealthier countries, we must learn to live with less stuff?
History shows capitalism reacts badly to declining markets. When the economy shrinks for a sustained period the system goes into crisis. Banks crash, unemployment grows and capitalists often turn to war to get their profits rising again.
The truth is a sustainable economy is incompatible with a system that constantly demands more profit.
To quote the greatest living English political philosopher, Russell Brand: “I know what the fucking system shouldn’t do. It shouldn’t destroy the planet and shouldn’t create massive economic disparity.”
Like Russell we know what we don’t like. That’s the easy part. But how can we get rid of capitalism and what is the alternative?
To answer we must go back to the issue of power and how to distribute it in a way that promotes the common good, a key element of which is a healthy environment. The best way is through more democracy. REAL democracy. Economic democracy.
Do you want an equitable, sustainable economy? Then help overthrow capitalism and create an economic democracy.
What exactly does this mean?
Let me give you an example: With the one pound one vote system that governs corporate capitalism, Richard Branson, with a net worth of 3.5 billion pounds get 3.5 billion votes. In comparison you (pointing) get 147 and you get 58. Most of you poor buggers owe more than you own so you get no votes at all. Economic democracy means giving everyone the right to a voice and an equal vote in their communities’ economic decisions. When everyone has an equal right in decision-making, economies will be motivated by general wellbeing, not private profit. Economic democracy means eliminating the divide between workers and owners by making everyone an owner. Economic democracy means multiple owning communities — local, regional, national, international — so that power does not become concentrated in the hands of a single central state. It means that wherever social labour occurs a system of democracy manages the enterprise.
Imagine companies that are democratically run by workers together with a local, regional, national or international government, whichever is appropriate to that enterprise; companies whose mandate it is to promote the common good, rather than the narrow self-interest of rich shareholders; companies that no longer have incentives to destroy the planet, but rather face real penalties for harming the environment.
Now, I know what at least some of you are thinking. This is not realistic. Your ideas are just pie in the sky. But the truth is capitalism has already created what one might call “objective conditions” that do indeed make economic democracy possible. Most people in most countries already depend on social labor. Most of you, if you find paid employment, will be salaried or wage workers. If we choose to fight for it, we can expand one-person, one-vote decision-making into every area where people work collectively, which is most of our economy. If we elect governments committed to it we could pass laws that limit private property to what is truly private and doesn’t give an individual power over others. We could create a system of social ownership with multiple democratic owning communities.
If we accomplish these three things — replacing corporate ownership with social ownership, replacing capitalist entitlement with equal human entitlement and replacing master-servant relations with workplace democracy — the system that drives enterprises to maximize profits, regardless of the consequences, would no longer exist.
Capitalism and sustainability, can you have it all? No. But there is a much better alternative: Economic democracy, a system that will offer authentic jobs, a nourishing work-life balance, your fair share of power and a healthy environment. This sounds like the essentials of a good life to me.
Gary Engler
New Commune-ist Manifesto 
Why would any young person support capitalism?
11 OctThey say you get more conservative, nostalgic for the past and critical of young people as you age. In my case it’s true, but maybe not in the same way most people expect.
This 60-year-old grandfather’s conservatism is reflected in a growing respect for the institutions, programs and social services that previous generations of ordinary working people built through organizing and struggle. I believe in preserving these institution, programs and social services despite the onslaught of right-wing choppers and cutters who proclaim “progress” when in fact people’s lives are being made worse.
My nostalgia for the past is reflected in fond memories of huge anti-war demonstrations, picket lines packed with people determined to get a good union contract and the feeling of being one among millions who believed another world was possible.
And I do sometimes ask myself what’s up with young people today. Mostly I’m just amazed they’re not out in the streets making a revolution.
I mean, they’ve got a hell of a lot of good reasons. Aside from the ongoing crap —war, the latest empire trying to dominate the world, poor people being screwed, aboriginal people being screwed, racism, sexism, other forms of discrimination — the economic system has put a huge bulls-eye on young people’s backs and the environment is about to collapse.
University and college costs at least six times more than it did when I was young and this at a time when you need a graduate degree just to get an unpaid internship. Youth unemployment is high and rising. And the jobs that are available? Suck-up service jobs. Smile and say, “have a good day,” or you won’t get a tip, if you’re lucky enough to have a job where you get tips. More likely you don’t have any incentive to smile except fear of a pathetic power-deprived supervisor who will ream you out for telling a customer your true feelings.
But let’s say you do get a decent job working for the government or making things in a factory or working in an office, the current economic system says you’re worth less than your parents and you damn sure don’t have a right to a decent pension and benefits. All that stuff is being cut back because the system can’t afford it, or so the people running things say.
A steady job? That’s not how it works anymore. Retire at 65? Sorry no, if you’re under 40 you’ll have to work years longer than your parents to qualify for any sort of pension. And all those good union jobs that people once enjoyed? Forget about it, the system has decided to crush unions. Or in the unlikely event you do find a union job, the new reality is lower wages for new hires.
Since the era of Ronald Reagan and Maggie Thatcher the system has gone out of its way to screw young people. Since the stupid capitalists took power the system says it can no longer afford the wages, benefits, social services and rights that the smart capitalists managed to provide in the 1950s, ’60s and ’70s. (But it can afford war and bailouts for banks.) Ever since the rise of neo-conservatism (also called neoliberalism) in the 1970s the cheerleaders of capitalism on crack have been up front about attacking unions, pensions, public education, healthcare and social services — all stuff that people over 50 got to benefit from, but which young people are told they can’t have.
Then to top off all this shit, people under 40 and their kids are the ones who will really feel the effects of global warming.
So, what’s with a generation that accepts punch after punch and then insults on top of the beating, barely raising a peep in protest? How could anyone under 40 support capitalism? Why aren’t they organizing, striking, picketing and marching?
Sure they have more distractions than we had: video games, the Internet, texting, Tweeting, Facebooking etc, But most of these could be put to good use rabble rousing the revolution, if the dream was there.
Most likely young people are so brainwashed by the system that they simply can’t imagine another world is possible. Consumerism and its evil twin individualism are the most likely culprits. Both have been pushed down the throats of young people the past four decades like bird parents stuff regurgitated food into the beaks of their babies. Buy, buy, buy. Me, me, me. Both these isms lead to ill health, alienation, and social paralysis. Inaction is the result.
And who is responsible for pushing individualism and consumerism? People my age. The me generation. Hippies. The turn on, tune in and drop out crowd. The feel-gooders through substance abuse. Individualism and consumerism were their bag.
Teach Your Children was the name of a famous 1970 song. We did, but now we can only hope that they are wise enough to unlearn much of what they were taught.
Take some advice from a grandfather: Dream of a better world with a democratic economic and social system. A system that lives in harmony with the environment rather than one that wrecks our planet. Get involved to make it happen. Take action, especially collective action. You’ll have the time of your life.
And teach your children well.
Gary Engler
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Tags: capitalism, change, economic democracy, Gary Engler, socialism, youth