Saturday, October 31, 2009

Time for Capitalism and Democracy to Grow Up

To Reich: I don't have Ebert or Roper with me...So I'll just have to hold both my own thumbs up!

Coming up with a truly inventive political or economic idea is a lot like coming up with technological invention. If the new idea really has any merit, chances are better than 99% that somebody else has already come up with the idea or something very similar (Edison and Tesla competing to commercialize electricity.) With politics and economics, chances are somebody already expressed the idea or something very similar a half a century or more earlier.

Understanding that, I contemplated titling this post “Déjà Vous All Over Again.” Good ideas are always worth revisiting. When either author is especially articulate – all the better; and when a new spin is added, you come away particularly well sated after digesting several viewpoints. Such was my experience after recently reading Robert Reich’s 2007 book, Supercapitalism. The fundamental tension that Reich paints between Capitalism and Democracy was stunningly simple (in the best sense of the word) and elegant. The notion that two of our most cherished ideals battle each other relentlessly over the decades surprised me and, it seemed to me, richly rang true.

As very good ideas always do, Reich’s book left me with more questions than answers. Intrigued to learn more, I did what everybody does: I Googled. Specifically, I Googled “dark side of capitalism” to see whatever would chance to pop out of the collective-consciousphere. I was truly fascinated to see Google return near the top of the list an Atlanta Business Chronicle book review (I live in Atlanta) of a 1999 release, Turbo-Capitalism: Winners and Losers in the Global Economy (book review link here) by Edward Luttwak. Hmmm, now isn’t that interesting. Compare the two titles, eight years apart. Suffice it to say, I strongly recommend Reich’s book; and the Turbo-Capitalism book is on my to-be-read list.

Even on the surface both ideas are terrific; but there is a fundamental missing piece with both. When you are leading people with ideas, it is always crucial to consider the direction you lead. Whether one leads children, adults, or CEO’s who act like children, its always far easier to lead people toward and idea than away from an idea. The power of this concept can not be overemphasized. A simple example is the chocolate chip cookie, “Billy, don’t eat that cookie!” Well of course the child will now be obsessed with the cookie (the negative) and sneak it at the first chance because you both emphasized the wrong target and solidified its image with graphic clarity in the child’s mind. You attracted attention to that which was bad. You did worse than guide away from the good idea. You guided toward a bad idea without even meaning to!

I can’t stress enough that I believe personally that both Reich’s and Luttwak’s ideas are very good. Reich is amazingly articulate and never fails to rivet my attention; but we need to complete the loop. In a way, neither book is finished. Both should have either entertained an immediate sequel or found a better title with positive connotations, a clearer objective. When one is passionate about a topic, if the focus is negative one risks being destructive; and I do wish Dr. Reich had chosen a different symbol for the cover of his book (a serpent in the shape of a dollar sign.)

We need a clear, positive target now and symbols that guide toward something. That target is, I believe, a broader yet simple unifying theory for enabling Capitalism and Democracy to complement each other. In order to accomplish that, I believe we must reexamine our beliefs in each individually and acknowledge some very specific and disturbingly dark sides that exist for each. Reich starts us down that path. I believe we’re ready to go further. We are ready to discover that Capitalism and Democracy can make each other better. We are ready to begin unifying the most successful political and economic models of the past century (democracy and capitalism) into a more stable and productive whole.

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