There are a few basic myths that the winners in Capitalism have fostered as tools to keep the rest of us merrily toiling away in the coal mines while they trot off with the profits.
The first two have been under a lot of pressure lately, and hopefully a more educated population will soon toss them on the historical trash pile of failed swindles where they belong.
#1 The American Dream
The poor and the uneducated, who lose the most from this charade (and if they only knew it, would gain the most by its demise) are the ones who stick to it the strongest. They are the ones who believe in it, and belief is hard to let go of. Those who cleave to the principle as a business technique are less attached. If they see a faster way to success, they are happy to jump ship. Note how many capitalists lined up to take government bailouts during COVID.
#2 Trickle-Down Economics
Call it “supply side economics” if you like, it’s all the same. The theory is that if the rich get richer, they spend it on hiring the poor. Wrong. They re-invest it to make themselves even more rich.
#3: The Inevitable Triumph of Capitalism
International business interests have long touted the theory that capitalism is inherently the best economic system. They have managed to tack this system onto democracy in a tenuous marriage that doesn’t really hold up under scrutiny.
The supposed advantage of this theory is that we instigate trade with communists and tyrants, and sooner or later they will all fall into line as the increased trade thus developed creates a middle class that will in turn demand democracy.
In practice, this hasn’t worked out too well. Capitalists who cosied up to the Nazis as a solution to the Great Depression did nothing to prevent WWII, and in fact helped Hitler get prepared for war. Modern history is full of anecdotes of American soldiers being confronted with weaponry of their own making, including Nazi tanks with Chrysler motors.
Neo-Capitalism
It seemed like the plan was working when the Russian Empire fell, and even Red China began to allow a modified form of capitalism. However, the progress only went so far, and it only serves to demonstrate the tenuous connection between capitalism and democracy. In fact capitalism, with its top-down authoritarian structure, fits in very nicely with autocratic systems, as the Communist Party of China and the Russian oligarchs would happily admit.
The Result?
We have Russia denying that Ukraine ever existed, and making claims of rights based on a 30-years-gone ownership in turn based on a century-old forced annexation. And the main weapons we have against them — economic sanctions — are weakened by Europe’s dependence on Russian natural gas.
We also have Communist China refusing to give up on their 110-year-old failure to invade Taiwan and preventing that country from dealing on an equal footing with the rest of the world, while we discuss the problem on our Chinese-made telephones and other media technology.
The Bottom Line
As a couple of Canadians named Michael will attest, you can’t carry out business or diplomacy with someone who is willing to break the rules when it suits them. Trading with autocracies makes them rich. Period.
A Nasty Thought
Thus, a fourth principle of Western society slides dangerously towards the myth category. Can we really lead the world to democracy by continuing to demonstrate proper democratic behaviour while the other side continually wins by abusing our unwillingness to act in a more forceful manner? Obviously not, or we wouldn’t have the buildup of NATO troops in Eastern Europe right now.
And can we create models of democracy when our economic system is so top-down?
Over to you…