How Capitalism Threatens Your Health, By Julian Edney

Julian Edney, Counterpunch, April 4, 2006

http://www.countercurrents.org/eco-edney040406.htm

The main event in capitalist free markets is the creation of wealth. The other 
event is the creation of inequality. Under principles of laissez faire this is 
not so much a tradeoff, a positive for a negative, as it is two positives. 
Inequality, the natural outcome of competition, is a sign of healthy struggle 
on which the whole community is said to thrive.

In corporate philosophy the mission of business is to maximize profit. To that 
end it values efficiency over almost everything, including moral 
considerations. The parent philosophy, utilitarianism, does not care if some 
people suffer injustices if a greater good shows up later. (In fact some have 
drawn "indifference curves" showing various gradients of inequality among 
humans, suggesting the more equality, the fewer total satisfactions (1)).

The industrial revolutions raised Western nations to massive wealth. Their 
stories can be written as a history of progress, and that is the outward 
appearance. But their entrails also ran with strikes, rights actions, antitrust 
decisions and labor strife; at times the creation of wealth ruined people. Free 
marketers will still explain labor mutinies as envious workers bent on random 
wreckage. But these actions all targeted massive inequalities.

Yesterday's and today's conservatives both say inequality is not bad if it 
comes from a free and fair market. They explain that where you land in the 
economic struggle for survival depends on your abilities, intelligence or 
character, so the blame for pain must be laid on the individual. Actually, some 
go further and hold inequality and injustice to be in the nature of things, so 
installing ethics or equity is tampering with natural law and its Darwinian 
ways, and it's not a good idea to help weaker players or the less talented 
because that slows natural selection.

The nub is that free markets and equality are opposed.

Next, what laissez faire tries to promote also collides with the two prime 
values of democracy: freedom and equality. They are the two legs on which 
democracy walks; the goal is therefore to preserve both.

Louis Brandeis, who as Supreme Court Justice before and after World War I 
inserted himself in the midst of these struggles, said that we can have 
democracy or we can have great wealth concentrated in the hands of a few, but 
we cannot have both (2).

Working conditions have improved of course. We no longer use child labor, nor 
fourteen hour shifts, nor do we pay workers the absolute minimum they will 
accept. But every one of these reforms was contested, fought, litigated, and 
intensely lobbied, because it is not in the nature of laissez faire business 
owners to want what is moral or humane. They want profit.

The basic colors of this conflict have never changed. The arguments that nature 
is ruthless and cannot be changed and that poverty results from inability or 
weak character still abound. The rest of society is concerned with morality 
every day. But businesses are amoral, following utilitarianism, and so we have 
collisions. (Cardinal Ratzinger once presented the church's moral position in 
this chronic conflict (3)). In this part of history we are on a rightward swing 
of the pendulum. Union power is at a low ebb, and corporate culture, 
materialism, and big money all seem formidable. People struggling for social 
justice have reason to fear because laissez faire and Social Darwinism are 
rising again (4).

Free market capitalism continues on its fundamentally undemocratic course. The 
interior landscape of most corporations is authoritarian, often exploitative. 
As a kind of public relations gesture they regularly serve us those well-chewed 
paradoxes: that competition is good for everybody, and that what is bad (the 
unhappiness of poverty) is good because it's a spur. Third, that making wealth 
by these competitive means raises everybody.

But common observation shows that competition is not good for everyone, only 
the winners; that what is bad is not good; and that unhappiness is not a source 
of energy, it is depressing. And while this country gets richer it grows more 
unequal (this has been going on since 1774 (5)). So does the free market lift 
the whole of society up? It does not. It spreads the upper and the lower apart. 
(We may have wondered about these tricks of reason, but laissez-faire is a 
powerful ideology, and under its spell we somehow accept that wheels on the 
same axle can turn in different directions.)

The bigger the unfettered free market, the less equal we become. And poor 
people cannot change this, because even if dependable and hardworking, they are 
powerless.

But now a new player has stepped in. New scientific evidence has been 
accumulating that inequality itself is bad for our health. It's not so much the 
qualities of the individual. Nor what he does. It is the system. It's the shape 
of the community he lives in ­ hierarchical or egalitarian.

After years of collecting health data, Ichiro Kawachi in the U.S.(6), Richard 
Wilkinson in Britain (7) and John Lynch in the U.S. (8) and their associates 
have discovered that more lethal than cigarettes, obesity, alcohol, pollution, 
AIDS, vehicle accidents, suicides and homicides, is the gradient of inequality 
in our societies.

This finding was unexpected and earlier researchers published and stood waiting 
for confirmation. Over ten years, confirmation came. Now more than 30 studies 
show that if you live in an unequal society, you run the risk of a shorter, 
unhealthier life and your environment is more violent. In researchers' 
comparisons of the 50 states, social equality is correlated with life 
expectancy (9, 10), and the steepness of the inequality predicts homicide rates 
and a raft of social ills. It's not just poverty (separately, poverty is 
correlated with poor health).

When you compare nations, on the other hand, richer nations don't have the 
longer life expectancies; egalitarian nations do. Robert Sapolksy, in his 
recent Scientific American article (11), teases out the mediating factors: it 
seems that people in communities having higher 'social capital' (the degree to 
which residents trust each other and participate in social groups) experience 
better health, longer lives and less violence. It turns out that communities 
with high social capital are also more egalitarian.

In short, each community has a social gradient. The steeper the gradient, the 
more that community is a killer. We can expect this new scientific evidence to 
be resisted with every sinew--it runs frontally against our free market 
beliefs. The United States is one of the most unequal nations in the world. 
Over 40% of the wealth is owned by only 1% of the population. This is a 
terrible weapon in the hands of the rich.

If we want to improve our health--something that obsesses Americans--it is 
clear what we must do. We must find a way to raise both affluence and equality.

Julian Edney is the author of Greed: a Treatise in Two Essays. Born in Uganda, 
he now teaches college in southern California and can be contacted through his 
website.

Notes

1. Rawls, J. A theory of justice. Cambridge: Harvard University Press, 1999. 
Pp. 32-34.

2. Brandeis actually went more inclusive at one point, stating that curbing 
bigness was essential to democracy. Strum, P. (Ed) Brandeis on democracy. 
Lawrence, Kansas: University Press of Kansas, 1995.

3. Razinger, J., Cardinal (now Pope Benedict XVI) Market Economy and Ethics was 
presented at a 1985 symposium "Church and Economy in Dialogue" in Rome and can 
be retrieved at http://www.acton.org/publicat/occasionalpapers/ratzinger.html

4. Edney, J.J. Greed: A treatise in two essays. Lincoln, Nebraska: iUniverse, 
2005. See Greed II.

5. It appears in 1774 the top 1% owned 14.6% of the national wealth.~ By 1989 
it owned 36.3%. In Gordon J.S. "Numbers game," 1992, Forbes, October 9. p. 48.

6. Kawachi, I., Kennedy, B.P. and Wilkinson, R.G. (Eds.) The society and 
population health reader. New York: The New Press, 1999.

7. Wilkinson, R.G. The impact of inequality. New York: The New Press, 2005.

8. Lynch, J. and G.A. Kaplan. Understanding how inequality in the distribution 
of income affects health. In Kawachi, I., Kennedy, B.P. and Wilkinson, R.G. 
(Eds.) The society and population health reader. New York: The New Press, 1999. 
p. 202.

9. Kawachi, I. and Kennedy, B.P. The relationship of income inequality to 
mortality: Does the choice of indicator matter? In Kawachi, I., Kennedy, B.P. 
and Wilkinson, R.G. (Eds.) The society and population health reader. New York: 
The New Press, 1999. p. 112.

10. Sapolsy, R. Sick of poverty. Scientific American, 2005, 293, 92-99. 
(December 2005).

11. Ibid.

----------------------

PS. There is good reason "Social Darwinism" is called precisely that - here is 
a little excerpt from Darwin himself ( from "Darwin's Voyage of the Beagle" 
abridged by Janet Browne and Michael Neve (Penguin Books, 1989)).

.... Jan. 1833, in Tierra del Fuego:

The perfect equality among the individuals composing these tribes, must for a 
long time retard their civilization. As we see those animals, whose instinct 
compels them to live in society and obey a chief, are most capable of 
improvement, so it is with the races of mankind. Whether we look at it as a 
cause or a consequence, the more civilized always have the most artificial 
governments. In Tierra del Fuego, until some chief shall arise with power 
sufficient to secure any acquired advantages, such as domesticated animals or 
other valuable presents, it seems scarcely possible that the political state of 
the country can be improved. At present even a piece of cloth is torn into 
shreds and distributed; and no one individual becomes richer than another. ....





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