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A fantastic cocktail of capitalism and corruption

Thursday, March 17th, 2011

Often I stumble upon on the same day, two different perspectives on the same topic. One of my favorite past time is to pick up random magazines from the library. The lucky winner the other day was The Progressive magazine. Very thought-provoking articles focused on current events in America, and with arguments that normally fly below the mainstream media.

Quite a few articles caught my interest due to the nature of the topics that I haven’t come across lately. An article, “Fighting Fire with Water” by Colman McCarthy, on the idea of pacifism was a great reminder of why the revolts in the middle east are so effective.

Another article by Luis J. Rodríguez, “the Latino vote” cleared up my common misconception of treating the entire Latino population in the US as one entity. On one of the panel discussions that the author was part of, an average American would have classified the panel participants as all “Latinos” but the author highlights that the only thing common amongst them was writing, if that.

But the best one was waiting just for me. The blockbuster article of the February edition was “The Rule of the Rich” by Bill Moyers. Some of you may know him from the PBS show Bill Moyer’s Journal – which I recommend if you are interested in thoughtful talk shows. The article is based on a rather lengthy speech he gave at Boston University in honor of Howard Zinn. Apparently, the Progressive article not available online in its entirety.

The article starts with defining the word Plutocracy (a new word for me and it means “state in which the wealthy class rules”) and goes on to open your eyes on why Richest Americans do not need the rest of America. The point of Moyers’ article is best summarized by this quote, ““There are two things that are important in politics, The first is money and I can’t remember what the second one is.”. What you will realize, after reading his speech (or the article if you can get hold of the magazine), is how in the name of capitalism, American politics and governance has outright sold itself to the wealthiest in America. Here is a key part of the article to ponder

from 1950 through 1980, the share of all income in America going to everyone but the rich increased from 64 percent to 65 percent. Because the nation’s economy was growing handsomely, the average income for 9 out of l0 Americans was growing, too – from $17,719 to $30,941. That’s a 75 percent increase in income in constant 2008 dollars.

But then it stopped. Since 1980 the economy has also continued to grow handsomely, but only a fraction at the top have benefitted. The line flattens for the bottom 90% of Americans. Average income went from that $30,941 in 1980 to $31,244 in 2008. Think about that: the average income of Americans increased just $303 dollars in 28 years.

Just a couple of days prior to reading this article, I was watching the PBS show, Need to Know and they had a fantastic segment on “Income inequality in America: An illustrated interview”. Try to watch the video on the link but the summary of it is that if this deadly canyon of inequality doesn’t stop, America may split into two parallel worlds.

If the trend that we’ve seen for the past 25 years were to continue over the next 25 years, I can’t imagine what the world would look like. Because suddenly you’ve got two separate education systems, two separate housing places. Two separate levels of experience. So, of course, I do not see how, in a system such as this, somebody that begins at the bottom can end up at the top.

Corporation, Profit, Politics & Corruption?

You know about six years ago I made a big decision to get a MBA from a reputed university. Which I did. But about half way into my short journey on business education, I realized I was losing appetite for corporate America’s lure. The courses I took, and some of the wonderful teachers at NYU made me discover what really clicked for me was the Social Enterprise Sector (Non-profit). I disliked finance, accounting and investment banking. I grew wary of Capitalism. Most students out of a business school get out deeply married to the ideas of Capitalism, I emerged crystal clear of its perils. The stories by Bill Moyers and Eduardo Porter reminded me of the heated discussions we used to have in the classes on corporate ethics, global economy and social entrepreneurship.

The subtle reality is corporate America is becoming monstrously huge and ruthless. The pointless year over year growth syndrome is driving corporations to seek wealth at any cost. Where the costs are too high, Washington devises clever policies to rescue Wall Street.

The agony is America is creating a fantastic cocktail of capitalism and corruption. The rest of the world is boozing the hell out of it.