More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Sally Kohn

Sally Kohn

Posted: April 22, 2010 01:01 PM

Coddling Capitalism

What's Your Reaction:

Recently, Texas Gov. Rick Perry fired up a group of Tea Party activists by ranting against "big daddy" government. But when we're facing the worst economic crisis in decades, brought about by Wall Street's blatantly greedy and fraudulent manipulation of our economic security for their personal gain, we should be welcoming "big daddy" government with open arms. Wall Street needs a spanking.

But instead, in his speech today to financial sector executives, President Obama was at pains to provide comfort to the crooks of Wall Street rather than chastise them. "I believe in the power of the free market. I believe in a strong financial sector that helps people to raise capital and get loans and invest their savings." According to the White House, the President is intentionally avoiding a scolding tone in favor of the sort of plain-people-joining-with-powerful-CEOs bipartisanship that was so plainly absurd in health care reform. Obama's Kumbaya calculus seems based on two assumptions -- first, that the American public doesn't want their president to fundamentally criticize capitalism; second, that the American public will believe the spoon fed load of crap that Wall Street executives had our economic best interests at heart but just somehow, by accident, went astray.

Average Americans who've had their homes pulled out from under their feet, their credit card interest rates quadrupled, their jobs shipped over seas -- because the financial industry literally created "investments" that bet against the American dream -- are not stupid enough to believe that this was all an honest mistake. Taxpayers who were told that bank bailouts were the only way to save our entire economy from disaster can smell the deception buried beneath record Wall Street profits and bonuses now surfacing in the first quarter of 2010 alone. Our collective critique scratches more than the skin of "a few bad apple" executives here and there. In November 2009, a BBC World Service poll found that 63% of Americans think capitalism in its current form is not working. Since then, everything from the Citizens United ruling to the Goldman Sachs indictment has only confirmed our deep suspicion that the nature of capitalism in America is rotten.

That doesn't mean we don't believe in markets and business. Americans are nothing if not entrepreneurial and industrious. But that's not what capitalism in America looks like today. The version of market economics that's been shoved down our national throat is designed exclusively by and for the benefit of giant corporations. Big business buys our politicians and writes our laws so they can crush small competitors, pillage our environment and destroy workers lives and human rights and anything else that stands in their way. And because big business owns our media, too, they have the perfect platform to persuade us over and over again that this arrangement is in our collective best interest.

As Americans, we buy a lot of crap, but we've finally stopped buying this lie. What's good for big business is not good for America.

For too long, mass public disaffection with the way capitalism in America is structured has been silenced because politicians and the media, beholden to big business, convinced us there is no alternative. Now, faced with such a sobering and stubborn economic crisis caused by very deliberate flaws in our economic structures, we're more aware than ever not only that there is an alternative but that we must embrace it. That doesn't mean socialism. But it does mean aggressively critiquing and re-constructing capitalism so that the market's primary goal is to work for working class and struggling Americans. The very survival of the American dream is at stake.

On Thursday, April 29, 2010, thousands of ordinary Americans will descend on Wall Street to call for meaningful financial reform that holds big banks accountable and makes our economy work for everyone. Those of us who will be at the Showdown on Wall Street -- and the millions of Americans we represent -- are worried about our jobs, our homes, our farms, our children's education, our very way of life. What we're not worried about is hurting capitalism's feelings. After all, capitalism never coddled us.

 

Follow Sally Kohn on Twitter: www.twitter.com/sallykohn

 
 
  • Comments
  • 133
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
Page: 1 2  Next ›  Last »  (2 total)
02:16 AM on 05/21/2010
Democrats are whores or they are not, we’ll soon see! They’re at fork-in-road. Every one of us is held accountable for what we do. IN CAPITALISM producer is accountable to consumer for truth in advertising. But CORPORATIONS ARE A *LEGALLY* FICTICIOUS INDIVIDUALS who can't be held accountable existing only as a LOGO behind which REAL INDIVIDUALS make $billions duping us into buying things whose real costs to us and our progeny are hidden. Now their filth has gushed from the bottom of the ocean as a warning from God that we are all employed by the devil, paid pittance for this astronomically expensive injury inflicted on Mother Earth. She has no health insurance plan; therefore we don't either, for if she dies we do too. As if that were not enough anonymous bankers have gathered the wealth of our nation into their pockets and are leaving us to clean the mess that made them rich. We must save capitalism as a freedom for REAL individuals by straitjacketing that ARTIFICIAL individual, the corporation. Corporations are a blanket under which our kids are molested; if we don't remove it we are KNOWING accomplices.
04:25 PM on 04/26/2010
It is so funny reading all the post here that bash capitalism. Do you people realize that its capitalism that has allowed places like this site to exist?
photo
HUFFPOST SUPER USER
macweenie
01:51 PM on 05/18/2010
Really? I thought it was the socialistic taxes that we paid to the government who then had the military create the internet that allowed it. It is the capitalistic gate keepers who want to throttle internet speeds and choke off access by destroying net neutrality, they want to make us pay more for less - your capitalist masters. If the "service providers" had their way we would still be using 1200 baud modems visiting text only corporate approved websites.
02:36 PM on 05/18/2010
This is a site is a business, its the free market that allows it to stay in business, ie captialism. Hmm, net neutrality....is that kind of like how this adminstration thinks that you should mandate internet sites to have links to opposing views? Oh, if they dont do it, they think congress should look into their refusing to conform? Is that the kind of neutrality you are for?
07:55 PM on 05/21/2010
Pleeeeaaaassssseeee. As soon as "capitalists" don't think they hear a VERY LOUD tingle of coins in return from the support—look at newspapers-- of any site, they pull out as if it were "unprotected sex." Even though their support "public interests" like PBS for the tax deductions, they still pressure so that inconvenient truths not be told there. Capitalism has duped America into thinking that IT is the basis of American advance when it is often immigrant technologists it imports and pays less than it pays citizens.

I'm for capitalism because I'm in favor of letting people try and make a living working for themselves but I’m weary of cannibalistic tendencies of HomoSapien. Trying to make a buck does not automatically make you a great guy-- unless you love bathing in oil or CDOs. Greed, not capitalism, makes people get off their butts and grab for the dangling meat. REWARD makes the dopamine flow from the ventral tegmentum of both herbivores AND CARNIVORES...guess what latter is going after-- YOU! And it is your dopamine that gets you running for your life. Capitalists think it’s OK to jump and eat the one with Parkinson's who can't run or the frail old one who can't run fast enough. Remember, my young capitalist friend, sooner or later you will be capitalism’s prey instead of predator!!!
08:04 PM on 04/25/2010
We've stopped believing the lie? Really? I don't think so. We are a fairly heavily propagandized people, and so far there is virtually no evidence that we are willing to do the hard work of opposing the illegalities and manipulations of national corporations. The way it works here is that powerful people wait, and wait, until the few people who are screaming for change get tired and eventually stop. And then the corporations go on doing what they were all along.
10:52 PM on 04/24/2010
greetings......without competition there is no capitalism......so, is there enough co-operative genetic material in the human genome to overcome the competitive genetic material???
11:48 AM on 04/25/2010
A million years of human evolution and 6,000 years of recorded history say "no". Competition brought more advancement to humankind by allowing the best ideas to flourish, as opposed to valuing all ideas equally.

Although there were several 20th century attempts to force co-operation on several large population masses. None of them ended well though.
11:51 PM on 04/25/2010
greetings John G.........co-operation cannot be forced, but it does exist....same for competition.....and it may be that co-operation is the more operative variable in the benefits accrued by humankind.....some think that only 10 - 20% of any given human population is aggressive (competitive) beyond the need to survive and have a decent life.......even attempts at forced "intellectual" co-operation are worth looking at......comparing Cuba's forced co-operation with Hati's experience of competitive capitalism can be useful....appreciate your comments....
08:04 PM on 05/28/2010
Completely wrong. There is a growing body of research that shows 'competition' is the aberrant state. Competition has more frequently impeded advancement; a stark example is the early days of AIDS research.
07:13 PM on 04/24/2010
Huh.

No mention of the housing bubble caused by artificially low rates (government), mandated watering down of traditional lending standards (government), moral hazard courtesy of Fannie & Freddie (government), bubble-driven greed (home owners), shirking personal responsibility regarding financing and homebuying decisions (home owners).

No call for letting housing prices fall to a natural price bottom, instead of propping them up with $8k housing credit (government) and loan modification programs (government).

Nope, it's all greedy Wall St bankers, so of course, the answer is MORE government action. How long will it take the goverment to reinflate that bubble?
11:26 PM on 04/24/2010
There is no mention of any of that because the Huffington Post usually reports on reality based stories, rather than regurgitate proven false conservative talking points.
11:43 AM on 04/25/2010
You're certainly welcome to dissect my post point by point with facts to refute it. But just "saying it isn't so" doesn't make your POV valid. Try again.
01:49 PM on 04/24/2010
Sally,

I actually agree with Obama's approach. Kill your enemies with "niceness".

But I agree with your overall premise that mainstream thought has shifted from "capitalism" is the answer to all our problems to "capitalism" is a tool that could equally be used to our collective detriment as it could for our collective benefit.
07:16 PM on 04/24/2010
Capitalism is the antithesis of "collective benefit", and by definition can never be used in that manner.

Socialism is the term you were searching for as the tool best used to provide a "collective benefit"
This user has chosen to opt out of the Badges program
photo
02:04 AM on 04/24/2010
"The very survival of the American dream is at stake."

I'd go one step farther than that statement.

The very survival of America is at stake.
11:01 PM on 04/23/2010
greetings.......before capitalism was feudalism.........before feudalism was slavery.....before slavery was.......actually slavery was the beginning of "civilization"..........old Karl thought that socialism would appear just beyond the highest level reached by capitalism.....which is where we're at, historically speaking, right now...... something much bigger is afoot .....reforming capitalism is not an option....there is no turning back....even if the future is quite uncertain.....
sonoffestus
Got smart & got out!
02:48 PM on 04/25/2010
I believe the US will eventually evolve into a Social Democracy like many European nations. Demographics and economics will be the driving force behind this evolution.

As you say, " which is where we are at." The shift has just begun. It will be difficult for many to adjust. There will be many steps forward and back, but fundamental change is coming. The present state of affairs is unsustainable.
photo
HUFFPOST COMMUNITY MODERATOR
SShaw490
03:57 PM on 04/23/2010
Good post, but it has a mixed signal - on one hand, you scold Obama for being too nice to Wall Street, on the other, you call for a balance between the needs of business and the needs of society. I think that's what Obama was, and still is, trying to achieve.

But we have to go to work to dispel the religion of capitalist extremism. I call it a religion, because that's what it is: What else would you call an ideology that is based on the notion that absolutely unfettered markets naturally contain some mysterious force that makes business work for the common good? That's the worst kind of religion - the type that even the most casual observer can dispute.

The mantra of "keep government out of business" is effectively, "let business rule every American's life." In the case against this religious mania, the health care system is exhibit A; Enron is exhibit B; the derivative market that caused a deep, worldwide recession is exhibit C; Wall Street bonuses are exhibit D; the destruction of the American manufacturing industry is exhibit E - you could go on all day with this.

A capitalism that is balanced against the duty of government to govern is just dandy. Throw the balance off just a little, and you have all kinds of trouble, as we’ve seen for the past decade or three. Only an extreme capitalism true believer would think otherwise.
photo
HUFFPOST COMMUNITY MODERATOR
SShaw490
04:38 PM on 04/23/2010
Oh, one other thing - The Founding Father of extreme capitalism was Ronald Reagan, who famously said that "Government is not the solution, government is the problem." Here's the reason that's faulty reasoning: The US Government is the largest, most prolific corporation on the face of the Earth, with an annual budget of > $2.5 trillion. Its budet is larger than the GDP of most entire countries, and the president is effectively the CEO of this tremendous enterprise. But who would want a CEO who hated the corporation that he runs? Who would want a CEO whose program is to tell the employees they're stupid, lazy, incompetent and corrupt; and whose deepest desire is to cause that corporation to shrink and die? What kind of idiot would elect such a CEO of the US Government?

Capitalism pats itself on the back and tells itself that it has grown America's GDP since Reagan. Well, it's only a success because it defines it's own terms of "success". It has made the already-rich fabulously wealthy, but the middle class finds itself poorer, sicker, less educated, with fewer opportunities and a darker future. We send our children off into a murky world with less hope of a decent life. Oh, one other thing it has done well - it has brainwashed America into believing capitalism works in its best interest. That's like convincing a cow that the McDonalds feed lot is a great place to live.
08:55 AM on 04/24/2010
Then I'g guessing your alternate would be? Socialism/Communism? Central planning and control. Where exactly has that resulted in a higher standaerd of living?
photo
HUFFPOST COMMUNITY MODERATOR
SShaw490
09:52 AM on 04/24/2010
Well, our health care system evolved from a system where all insurance was pretty similar and doctors owned their practices and had a passion for their patients (since they were also customers) to a corporate-dominated system that costs us 2 1/2 times as much per capita as the average of all other industrial nations and we have worse care. Is that what you call a triumph of capitalism? Our financial system evolved from banks that used deposited money to make loans for people who wanted to buy things or fund businesses to one in which the trade on synthetic, esoteric financial instruments is the driving force, and which created so much systemic mistrust that the entire world economy was almost destroyed. Is that what you call a triumph of capitalism?

We often equate capitalism with entrepreneurship - in fact, capitalism circa 2010 is a huge corporation struggling against another huge corporation for monopolistic control of some sector of the economy. And those huge corporations' actual product or service is irrelevant to the CEOs who run them. The notion of competition improving quality and delivery of products or services becomes a quaint but outdated concept. Entrepreneurship is crushed by 2010 capitalism.

Capitalism today has nothing to do with quality or competition - it has to do with high-level games of hedging, gambling and monopolizing, to the detriment of America as a whole. Like the old proverb, "When the elephants fight, the grass gets trampled."
11:29 PM on 04/24/2010
Europe, actually. It's just that the higher standard of living is disbursed among the populace, rather than concentrated in the hands of a few.

And the odds are pretty overwhelming that anyone posting comments here will never be one of those privileged few, nor will our children or grandchildren. I am utterly baffled as to why people continually and consistently vote against their own interests.
02:27 PM on 04/23/2010
Thanks Sally, I think you are on to something but this particular group of opportunistic democrats apparently believe they will do well by compromising with the crooks on wall street and the vicious right wing extremists in control of the republican party.
12:48 PM on 04/23/2010
There is most definitely a problem with the capitalism system we have, for it is CRONY CAPITALISM - it is based on no lose welfare for the Too BIG To FAIL Friends of the Too BIG Government. All the banks and all the AIG's out there get to play around with money-printed-out-of-nothing with no risk to them - when they win, they are even richer, when they lose, WE lose. That is not capitalism. That is Corporatism. Thats what this country suffers from. The merging of BIG Business with Big Government. Mussolini had a name for this, Fascism.

We need true Austrian Free Market economy here - No Corporations - people powered honest money. Competing currencies and a manufacturing base here in America. You want jobs? We need to start producing stuff again. Start supporting those American made Industries. We need Local economies.

Or else, this Cronie Capitalism Phony "free-trade" with agreements like NAFTA/CAFTA that are like 3,000 pages long, do NOT represent FREE Trade - free trade is 2 words - FREE & Trade! These so called agreements are also what destroys foreign business from providing for their own people, hence driving them across the border, "illegally".

Stop being consumers of junk and stop worshipping the service areas - start building/manufacturing something, American made and trade in silver - real, honest money - that cannot be printed out of thin air and used for WAR & Destruction.
03:50 PM on 04/23/2010
Adam Smith wrote "The Wealth of Nations in 1776" as a polemic against Mercantilism . His primary concern was fighting oligopolies and large companies that, after becoming successful, turned around and bought legislative protection against competition. The problem is not Capitalism, it is this form of "hybrid" Capitalism that we currently practice.
12:44 PM on 04/23/2010
You, Obama, and Demoncrats are nothing but communists slowly coming out of the closet. Socialism has almost sucked all the life out of Europe and communism is an evil system designed to keep citizens wholly subservient to the state. Your ideology is losing out right now because most people see it for the misguided and destructive social mechanism it truly is.
ThePeacemakers
Concerned Citizen
01:08 PM on 04/23/2010
BOO !!
photo
Estreet1964
My neighbors know I'm a rock and roll singer
01:11 PM on 04/23/2010
Did you read this part? (Or any of it?)

"That doesn't mean we don't believe in markets and business. Americans are nothing if not entrepreneurial and industrious. But that's not what capitalism in America looks like today. The version of market economics that's been shoved down our national throat is designed exclusively by and for the benefit of giant corporations".

And teabaggers wonder why some of us often question their level of intelligence. Stop believing what Glenn Beck tells you and see the world as it is. I'm not a communist; I don't advocate communism; I don't want to destroy American and myself and most progressives feel the same way and love our country every bit as much as you do.
photo
Estreet1964
My neighbors know I'm a rock and roll singer
12:41 PM on 04/23/2010
Hear, hear! I will be marching next week. It’s time for action.

Demand a criminal investigation.

Demand the release of the AIG memos.

It’s time for the gloves to come off. The American people bailed out these sociopaths and yet they’ve doubled down on their schemes to stick it to working Americans because they feel as if they are entitled to their obscene profits and bonuses and untouchable by the powers in government.

http://www.whitehouse.gov/contact
http://pol.moveon.org/investigatewallst/
photo
HUFFPOST SUPER USER
Michael Valentine
Retired SEIU Member
12:19 PM on 04/23/2010
Coddling capitalism? We fight wars to enrich war profiteering corporations who in turn are now able to legally put as much of their tax dollar earnings back into their lobby .... Congress, as they want to. This ensures that the wars continue.

The United States of America is now the open maw of capitalist hell. Making endless wars for profit, while wrapped in the flag. May God have mercy.
01:49 PM on 04/23/2010
sounds like Corporatism/Fascism to me.
ThePeacemakers
Concerned Citizen
12:02 PM on 04/23/2010
"Coddling" - excellent word for it. I've called it "worship" and some other sex acts that I won't go into.

By the way: the reason they picked a baby for those E-Trade commercials:
'Cause if they get the average joe at the computer thinking they're going to be a "player", it's like taking candy from a baby.