Both Ends

In 1800, about 90% of Americans worked on farms; by 1900 it was 41%; today it is slightly under 2%. How times have changed. One would have thought such a dislocation of the workforce would have led to some severe economic trauma. But the opposite was true, as opportunities sprang up in numerous sectors and the country’s manufacturing capacity skyrocketed. In other words, society was capable of adjustment at a remarkable rate.Today we are experiencing the opposite. Those losing jobs in places like Electro Motive in London, Ontario aren’t in the process of transitioning to other employment opportunities that are leading to higher standards of living. Their most likely option, should they have to find other work, will be in a labour environment that is in a process of a race to the bottom.This change now appears to be occurring so dramatically that society’s leaders feel nonplussed as to how to adapt and cope. And so they opt for most unimaginative of ways to act: going hand in hand to international firms in hopes they’ll settle in their respective communities. This is part of their job and they carry it out with diligence, but it does bring to our cities the same kind of temporary, low-wage mindset that we’ve been struggling with in the first place. In reality, and people are often loathe to admit it, much of the present political thinking is overly influenced by such an outlook. As economist Daron Acemoglu put it: “Economic power tends to beget political power even in democratic and pluralistic societies. This tends to work through campaign contributions and access to politicians that wealth and money tend to buy. This political channel implies another, potentially more powerful and distortionary link between inequality and a non-level playing field.”This ongoing and painful emergence of capital over labour is actually dividing our communities, leaving them increasingly poor in the process as even senior levels of government-run out of funds to assist local constituencies. The present corporate mindset continues to talk about the market and how it provides opportunity for all. But, seriously, that only happens for those who have the resources upon which to build their future. Children in poverty, as an obvious example, get less nutrition, healthcare and education. Where’s the opportunity for them? What’s equal about that construct?A very good friend and businessman said to me yesterday, “Glen, you know that we are only talking about 3% of these corporations that are causing these problems?” I actually don’t know the exact amount, but why quibble; most corporations have CSR policies and seek to help their respective communities. But if that is true, how then did we get into the situation we are now, where 1% control not only so much of the wealth, but the political influence as well. The irony of citizens looking to their own communities as a result of their disillusionment with governments while at the same time their respective regions can hold fewer and fewer resources is painful to consider.True, the Great Recession which yet lingers forced times of transition upon us with remarkable speed. Yet the economic system was already at the 99-1 measure before the hard times emerged. To underscore the urgency before us is the reality that the elite 1% now controls more of the wealth than just three years ago. The recession prompted governments to bail out the larger corporations, thereby leaving the public purse even more in debt and unable to respond the social fallout of tough economic times.Our greatest problem at present is not so much the present financial order as it is our almost complete fatal outlook that this is just the way it is and that we have to get by with less. That “deer in the headlights” myopia only speeds up the transition to elite control.Let’s break out of the confining outlook and consider what our societies might look like if corporatism was brought in as a true community partner as opposed a superpower invading all the little Grenada-like communities across this country. How would we bring it about? Could we bring it about? How might we commence the process of renewing our communities by permitting capitalism to acquire its profits without such full control? How can we convince the corporate community that they are killing off their future customers in our cities the more money they retain exclusively to themselves and their shareholders? These are good questions and it’s time we seriously applied ourselves to them instead of offering only blind acceptance.Capitalism has altered dramatically, from the historical form which manufactured products to meet essential demands of consumers who made their desires known through what was on the market, to the present in which desires themselves are manufactured by advertising and the spinning of products in an endless supply of consumerism. It’s not about supply and demand anymore; it’s just the opposite, as we demand more and more products to satiate our appetites. How do we curtail this madness? It won’t be easy, but how’s the present system going for us? Surely there’s something better – ideas to not only save our communities but to rescue capitalism from its most debased instincts.This penchant we have for endless production and endless consumption is burning the candle at both ends – it’s futility on a manic scale. We need capitalism, but now we need dedicated citizens to help it reform itself. Let's consider how that might look ...