me: >> It's quite possible for a far-sighted capitalist to do all sorts of >> illegal, immoral, or downright disgusting activities (such as Joseph >> Kennedy's booze-smuggling) and _then_ diversify out of crime -- >> indeed to launder all of the illegally- or immorally-gotten assets >> into a nice, diversified, legal, and safe portfolio. That would do as >> much for his or her children and grandchildren to live the life >> they've become accustomed to, along with all the prestige and power >> (cf. the Kennedy sons). This kind of rip-and-run strategy has been >> applied again and again.
raghu: > I am also getting tired of repeating myself, but I'll do so just one > more time: "rip and run" capitalism does not work if everyone does it. > A few people individual capitalists can do it and get away with it but > if done on a economy-wide scale, we get depression like we have now. Actually, that's not repeating anything. Rather, it's a completely new point (a reference to the fallacy of composition). I accept it, since it's right down the alley of what I was talking about (e.g., the way in which focus on a few individuals can easily distort one's perception). But then, why does raghu talk about a far-sighted capitalists _as individuals_ rather than about "far-sighted capitalism" (roughly, what I called "soft social democracy") as a socio-economic system? In our current neoliberal version of capitalism (with all forces of resistance hanging on the metaphorical ropes, smashed by Volcker and his ilk), the capitalist who doesn't rush to rake in as many profits as possible will have a hard time borrowing (as lenders like to get higher returns) and getting stockholders to add equity (ditto). As in any "adverse selection" process, free-market competition punishes those who play it safe and legal, while rewarding those who take risks and are willing to cut moral or legal corners to accumulate wealth. Thus, the risk-takers and crooks dominate, especially as they can use their economic advantage to increase their political advantages. My point, reiterated: we're not going to end neoliberalism just because a few "far sighted" individuals want to end it. The untrammeled greed of the vast majority of capitalists is going to knock down, water down, or hose down any effort to transform neoliberal capitalism into soft social democracy with the passage of a single set of reforms, unless there is truly organized opposition from outside the capitalist class and its political system. Thus, we're likely going to see a repeat of the 2009 melt-down a few years in the future. -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
