CORPORATE RULE
INTRODUCTION
We stand at a crucial juncture in our history when much-hyped meetings of elite political and economic leaders are overshadowed by those who seek to challenge the status quo, to say no to the myth that global capitalism is not only inevitable, but necessary.
The status quo refers to social and economic policies that advance the interests of corporations. Neoliberalism is the ideology of corporate rule and has been the dominant ideology in much of the industrialized world for approximately the last thirty years. The proponents of neoliberalism believe in a reduced role for government, including lower taxes, balancing the budget by slashing social programs, privatization and deregulation. They also believe in more trade agreements (really investment agreements), greater access to markets, and removing governments as a barrier to the flow of investment and capital. The neoliberal ideology embraces the market system as the fundamental principle of economic and social policy. In the free market system, supply and demand and other natural economic forces rather than the government determine how wealth is created and how wealth is distributed.
The impact of this ideology has been devastating to both the planet and the majority of its inhabitants. Global warming, smog, the loss of biodiversity, deforestation, and ubiquitous toxins are approaching catastrophic proportions. Global warming alone threatens to transform arable land into deserts, flood coastal cities and islands, and cause more weather disasters such as floods, hurricanes and tornadoes. Too many people are also suffering from the health effects of toxic substances in the atmosphere, land, water, and food.
Further, the social and economic policies based on neoliberalism have created a growing gap between the rich and poor both among and within countries. Poverty is on the rise in the industrialized world as well in developing countries. In Canada, the use of food banks and the number of people and families who have become homeless is increasing. Health care and education in North America are in a state of perpetual crisis. Missing in Canada are social housing, child care, pharma care, and denta care. Too many people lack the support systems to live productive and satisfying lives.
Ever since neoliberalism has become the conventional wisdom for decision-makers in both business and government, there has been a growing protest movement opposing the forces of global capitalism. For many years the voices of protest have been ignored. Canadian and American politicians, the business community and the media have marginalized opinions that do not conform to conventional wisdom. Governments have not listened because the democratic systems in Canada and the United States are flawed and open the door to influence pedaling by big business. The corporate sector has been pressuring the government to buy into this ideology because it affords them the opportunity to increase their profits. The media in Canada and the United States are owned by huge conglomerates, which also have a stake in perpetuating conventional wisdom. Therefore the dangers of corporate rule are only slowly creeping into the public consciousness.
During the past few years, protest movements have been gaining momentum. One need only look to protests targeting the World Bank, International Monetary Fund, World Trade Organization and the G8. The protests in Seattle, Windsor, Quebec, Washington, and Genoa are all evidence that people are increasingly rejecting the status quo and clearly want more participation in the decision-making process and changes to social and economic policies based on neoliberalism. It is only a matter of time before these protests reach a critical mass at which point governments and the corporate sector will have to respond. Socially just causes ultimately gain wide popular support and people in a democracy have the tools needed to force change. These tools will be examined throughout the book.
A new conventional wisdom based on the principles of conservation, sustainability, social and economic justice, and the United Nations Declaration of Human Rights will gradually win popular support. These principles are part of the ongoing historic struggle of people to gain their freedom from the self-interested power of a ruling class and to have the means to live a fulfilling, satisfying and productive life free of the burden of those who would oppress or exploit them.
Over the years as I researched, taught, and wrote about economics and social policy, I would frequently turn to my life-partner and wistfully lament that if only people understood the power and influence of big business, they would be enraged. My purpose in writing this book is to give the reader sufficient information about the loss of democracy, quality of life, and the destruction of the planet so that you will utilize the strategies described in this book to force the government and powerful interests to adopt the new conventional wisdom. The final chapter will include a comprehensive list of actions on how to challenge corporate rule. I describe a wide choice of actions to allow each reader to undertake those with which they feel the most comfortable. By the end of the book, you will be motivated by a newly acquired understanding of the issues and armed with a set of weapons to defeat neoliberalism.
Although many of the issues covered in this book have been examined elsewhere, it is my intention to bring the different elements of these problems together in one book to explore common threads and themes and to give the strategies to fight for change. For each problem discussed, I explore the various solutions that have been experimented with successfully elsewhere. In Canada, our focus tends to be on the United States which limits our perspective on how to solve these problems. For example, privatization and deregulation are the principal strategies employed in the United States whereas, as will be shown, other more effective solutions have succeeded elsewhere.
The major theme, which underlies all the issues in this book, is the ascendance of corporate power over governments. While democratic governments, in theory, have an obligation to serve the public interest, they are, in Canada and the United States, as well as other democratic states, transferring power to multinational corporations many of which now have more assets than the economies of some industrialized nations. Many decisions rendered by the Canadian Government, such as balancing the budget by slashing social programs and then implementing huge tax breaks, benefit the wealthy and the corporate sector but not the majority of Canadians. Serving the oil industry rather than taking serious action to fight global warming is further evidence of the misplaced priorities of our government.
In order to win popular approval for policies, which are not really in the public interest, the government has to, in the words of Noam Chomsky and Edward Herman, "manufacture consent." In other words, the government needs to develop a strategy to persuade the public to accept policies which are not in their interest and to generate consent for these policies. The mass media contribute to this deception by serving as a propaganda machine for neoliberalism.
Another theme that runs through all of the topics in this book is the growing concentration of wealth, power, and privilege in the hands of a small minority of Canadians and Americans. Our flawed system of democracy allows these elite groups to have a disproportionate influence on decision-makers. We are also living in a world where many important social and economic decisions are made by multinational corporations.
As well, the world economic structure gives multinational corporations a great deal of power because of their ability to set up operations anywhere in the world to exploit favourable conditions. International investment and capital markets have become very speculative and tend to hold governments captive to their every whim restricting the freedom of governments to act independently. As a result, when our economy is growing and generating more wealth, only a minority of Canadians are benefiting.
Chapter 1 is about empowerment. It would be pointless to describe all the problems in Canada and the world without describing all the tools needed by you to contribute to the triumph over neoliberalism. Without knowledge of these tools, you would only feel more frustrated, angry, and helpless. In this chapter, I first explain the reasons why more people are not more involved in challenging corporate rule. Then I evaluate all the arguments or excuses which people invoke to justify their own inaction. Finally, I describe the Fivefold Path of Activism which offers you a wide range of choices as to what action you can take. In the final chapter, a specific set of actions will be described which are relevant to the issues discussed in this book.
Chapter 2 describes the flaws and weaknesses in our system of government which corporations and their organizations exploit to gain almost exclusive influence over government decision-making. The agenda of the Canadian Council of Chief Executives, formerly known as the Business Council on National Issues (BCNI), mirrors almost exactly the agenda of our government over the last twenty-five years. As well, business has carefully financed parties and leaders whom they believe to be business-friendly. The ability of paid lobbyists to exert pressure on behalf of their corporate clients gives these corporations an excessive amount of influence on government decisions. In a truly democratic system, all citizens and groups should have equal access to decision-makers. The electoral system in Canada, the U.S., and Britain is inferior to the system adopted by all other democratic nations. In addition, the power of the executive, and specifically the Prime Minister, will be evaluated to determine whether these powers undermine democracy in Canada. The weakening of the role of ordinary Members of Parliament, and in particular, their role on committees, will be discussed along with suggestions for reform.
Chapter 3 examines in detail the economic and social policies that are based on neoliberalism. Governments make economic and social decisions on a variety of economic indicators. In this chapter, I will demonstrate the critical flaws in these indicators which create the impression of economic progress while masking the ills in society. The zero-inflation policy of the Mulroney years was the main cause of the debt even though the Chretien government decided to balance the budget by slashing social programs. Milton Friedman's economic theories, which govern the actions of central banks and governments in North America, actually require that a certain level of unemployment be maintained to avoid an inflation spiral which would hurt investors. Finally, the latest trend to cut taxes is wrongheaded and economically unsound. These tax breaks reduce the ability of government to implement social programs such as public housing, education, health-care and welfare.
Chapter 4 examines the impact of the above social and economic policies. The impact includes a growing underclass, a growing gap between the rich and the poor, the end of a national housing policy, a weakening of supports for the poor and no new initiatives such as a national child care program. The chapter also takes an in depth look at poverty: its effects on single parent families, children, its causes, and how it is measured. Food banks and homelessness will be explored as a manifestation of poverty.
Chapter 5 explores the many environmental crises that threaten the health of the planet. These crises include global warming, deforestation, pollution, smog, biodiversity, and genetic modification. An assessment of the Canadian Government's commitment to solve these problems will explain why they are still in a state of crisis.
Chapter 6 evaluates trade agreements such as the North America Free Trade Agreement (NAFTA), the World Trade Organization (WTO), and the proposed Free Trade Agreement of the Americas (FTAA). Also discussed, will be the impact of these agreements, such as the transfer of power from governments to multinational corporations. For example, why was Canada forced to repeal a law protecting its citizens from a dangerous product called MMT? Although called trade agreements, are they really investment agreements? These and other questions will be answered in this chapter.
Chapter 7 explains why many people are not aware of corporate rule and its impact. The mass media in Canada and the United States are owned by large corporations and either ignore particular points of view or underreport stories that reflect negatively on corporate rule. Noam Chomsky describes a number of filters which prevent certain points of view from reaching the public and how stories are framed in such a way as to create a positive perspective of neoliberalism. There are other reasons for the lack of balanced reporting such as the time constraints on reporters and the need to ensure that news is entertaining. Basically, unless you engage in research outside of the mainstream media, you will mostly be exposed to a narrow range of opinions.
Chapter 8 discusses how popular culture distracts people from paying too much attention to what is going on in the world and at the same time reinforces corporate values. We are taught to define ourselves in materialistic terms and to worship celebrities. Part of the appeal of celebrities is that they are rich and glamorous which encourages people to adopt their values. We are distracted by an entertainment culture, which Neil Postman describes as "amusing ourselves to death." Many people either feel helpless, depressed, or powerless in a world where powerful multinationals seem unstoppable and governments are either too remote or unresponsive.
Chapter 9 explores the set of values that will eventually replace neo-liberalism. Conservation and sustainability are still not mainstream values but will by necessity gain popular support. We are exhausting non-renewable resources and dumping toxic substances into our air, water, and atmosphere at an alarming rate. Alternate technologies such as wind power, solar power, biomass, and less wasteful ways of disposing of our garbage are some of the alternative strategies that will become essential. Eliminating unemployment and underemployment would solve many problems such as crime or underachieving children. When children live in poverty, they are often malnourished which effects not only the development of their brains but also their ability to concentrate in school. There are many strategies to create full employment which have yet to be adopted on a large scale in North America. Reducing the number of hours that people work through either a shorter workweek, paid leaves, longer parental leaves and sabbaticals, to name a few, would create many new and meaningful jobs. A number of important economic indicators are used by decision-makers to determine what social and economic policies to implement. This chapter will explore more meaningful measurements for evaluating economic and social progress. The current measurements on which economic and social policies are based are inaccurate and misleading.
Chapter 10 outlines possible strategies for defeating corporate rule.