Just watched “Capitalism: A love story”

7 Jun

I will state up front that I consider myself a socialist. Not the “Zomg! Obama’s a fascist/socialist/communist/racist/muslim!!!11” kind that the people with tinfoil hats seem to think is socialism, but the one of the actual kinds of socialism.

To be completely honest, I’m not quite sure exactly where I fit on the socialist spectrum. I think I land somewhere between “progressive” and “democratic socialist“.  (At least those were my top too according to this test)

I’m of the position that a government, formed by the people, should be charged with conducting itself in a manner that best protects the interests of the people as a whole. In other words, the government should work to make sure the greatest number of people possible have the best standard of living possible. (Yet the rights/views of minorities should be protected, hence why I don’t believe in direct democracies that lead to mob rule, but I digress)

I feel that hard work should be rewarded, and that people should benefit from their labor. But then this is where my views get confusing, even to me. I do not feel that the wealthiest people in America are necessarily “hard workers”. I feel they cynically game the system much the same way welfare freebooters game the system.

My view that the wealthiest people unfairly manipulate the system was really confirmed by this movie. Now before you make the assumption that I am some Michael Moore fan boy, there was a lot about this movie that did not sit well with me. I felt the lion share of this movie was an appeal to emotion, which makes sense, Moore is trying to outrage you into action, yet I would have preferred he focus more on facts rather than sensationalist teary-eyed families being forced out of their homes.

The facts that are in this movie should speak for themselves. The most compelling part of the film is when Moore weaves together the story of how America became a plutonomy starting with the recession of the Carter years and the capturing of the government by Wall Street during Reagan’s presidency. The scene where Don Regan tells president Ronald Reagan to “speed it [his speech to the NY stock exchange] up” is amazing.

The whole tale of a calculated and organized hijacking of the nation by Wall Street’s CEOs seemed to smack of conspiracy theory. It’s an amazing, and infuriating, story, but I would like to find some evidence outside of Moore’s documentary in order to decide for myself if it’s true. There is one thing, however, that this conspiracy story has going for it that others don’t:

In most conspiracies, the actors are the government. The problem with this is that the government is notoriously incompetent.* The “9/11 was an inside job” conspiracy is extremely improbable merely because of the high level of planning and competency required to pull off such and act and then cover it up. A government is just not capable of that level of finesse. (Especially under Bush’s incompetent reign) In this conspiracy story, however, the actors are not some clumsy government, but a small collection of some of the smartest, most brilliant people in America, the CEOs on Wall Street.

“But wouldn’t market competition dictate that different CEOs be working against each other?” Yes and no. While they most assuredly were in competition with one another, it makes more sense for them to work together on something that would benefit them all greatly. (Like no regulations) However, the ultimate “winner” was Goldman Sachs. Under Clinton and Bush, Goldman Sachs managed to fill top Treasury Department positions with its “former” employees, including even the position of Secretary of Treasury with Henry Paulson, former CEO of Goldman Sachs. (His net worth was $700 million when he left to become Sec. of Treas.) With this superior posturing, Goldman Sachs was in prime position to pressure its will on the government.

(Goldman Sachs also had their CEO in the Sec. of Treas. position with Robert Rubin. (Who also served as CEO of Citigroup) The current Sec. of Treas., Timothy Geithner, is a protegee of Rubin’s)

The most shocking and outrageous part of the film for me came when Moore discussed the recent bailouts of the super banks.  Two months before elections, Sec. Paulson drew up a 3 page plan to bail out Wall Street. (Keep in mind, usually legislation passed by congress is hundreds, if not thousands, of pages long) In that plan Paulson stipulated that all laws, including court review, would be waived:

Sec. 8. Review.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

Checks and balances anyone? The American people were rightfully outraged, but Paulson and his goons ramped up the fear factor, hoping to cram through the bill with a little debate as possible, just as Bush had done for the Patriot Act and the war in Iraq. Amazingly, for once, the American people fought back and the bill was defeated, by 12 votes. Congress then went home to prepare for elections.

Here is where I become really furious: Enter the democratic party leadership. Paulson and company rush back to DC and enter in backroom deals with the democrats. Promises are made, futures are sealed, and then congress does a complete 180, the American people be damned. Paulson gets the key to our pockets and makes off with 700 Billion; proof Wall Street has muscles to flex over our government.

The film is very thought provoking to say the least. It’s clear that our “free market” system is being manipulated to the benefit of a very select few. Employment near 10%, thousands of people being evicted from their homes, corporations making millions off of “dead peasant” policies, meanwhile banks take billions in our money, only to send their executives on luxurious vacations and the CEOs retire with unholy amounts of money. This isn’t working, but what’s the answer?

Despite the film being directed by Michael Moore, a person people on the right hate as strongly as they love Reagan, I feel a large portion of the movie would appeal to the right as well, especially the Tea Party movement. The fact that we’re being universally fucked by our leaders is something we can all rally behind, and I think this is one of the great points the movie tries to make. Moore references a Citigroup memo that was leaked where Citigroup explained to it’s top investors that they [Wall Street] had successfully turned America into a plutonomy, and that it was no longer a democracy. (Seriously, go read it, it’s scary) The memos explained that the top 1% of America now had more wealth than the bottom 95% COMBINED. Here’s the real kicker: Citigroup states in the memos that the biggest threat to their “gravy train” (yes, that is a direct quote) would be if society demanded a more equitable share of the wealth. The biggest problem was that despite having more money, a rich person can only cast as many votes as a poor person, 1. In other words, if the peasants realized that they were never going to get that carrot, the “American dream” of wealth, that they would revolt and vote the puppet government out of office. (Seriously, go read the memos)

I certainly feel communism is just as evil as American style unregulated capitalism. While we have vast economic inequity, communism, as practiced as a political system, is totalitarian and oppressive. I want there to be a middle ground, that’s why I call my self a progressive socialist. But do my views work? I don’t know. To be honest, I’m not sure how closely my views fall to those in Europe. I’ve always dreamed about moving to Europe because there they work to live, whereas here we live to work. Unfortunately, Europe is going through a financial crisis right now because Greece took that to the extreme, completely unbalancing their budget. I’m interested to see how European style socialism weathers this crisis.

*unless you work for the Coast Guard

2 Responses to “Just watched “Capitalism: A love story””

  1. gossip June 7, 2010 at 5:19 am #

    I always want to go to Europe too. But you are right. They are on crisis right now. So, I may have to think it over.

  2. Carolyn Cox October 5, 2010 at 8:46 am #

    Check out the book “Envisioning Real Utopias” by Erik Olin Wright.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: