There is no alternative. Capitalism is the only future. Free markets are
the essence of democracy.
How do we know? Because we are told repeatedly by smart guys from
corporations and government, and by the journalists and academics paid to
explain why the smart guys are right.
In the face of that "consensus," the folks at the Program on Corporations,
Law and Democracy (POCLAD) have launched a direct attack on the nature of
the corporation, the institution at the core of modern capitalism.
So, are they crazy or just confused?
Neither. The POCLAD members are refreshingly clear, and the book of their
writings -- Defying Corporations, Defining Democracy -- makes a compelling
case for their analysis and strategy.
The key is that their critique is of the nature of the corporation. They
are not simply saying that corporations do bad things or sometimes distort
democracy (most liberals and even some conservatives admit that, especially
post-Enron). Instead, they argue that the rise of the contemporary
corporation has been the death of meaningful democracy. While I think their
analysis needs to broaden (more on that later), the POCLAD collective has
done an important service by framing the issue of economic justice in a
language accessible to people not yet persuaded by a left/progressive analysis.
Here's the story POCLAD tells:
Our wealthy founding father devised a system that allowed them to maintain
power -- by restricting citizenship to propertied white men, and through
elite-controlled institutions such as the U.S. Senate and Supreme Court
that could corral any wild ideas that regular people might pursue through
the relatively more democratic House of Representatives, or state and local
governments. Still, the democratic principles on which the country was
founded were real, and popular movements over time expanded the franchise
and agitated for more democracy.
At the same time those battles have been going on, lawyers and lobbyists
have waged a war to expand corporate power. Often relying on judges to do
what even well-lobbied legislatures wouldn't, corporations went from being
limited entities in the 18th and first half of the 19th centuries that
could be controlled by the people and their representatives, to today's
concentrations of wealth and power that have almost completely escaped
popular control.
In POCLAD language, corporations began as entities subordinate to the
sovereign people but eventually became masters, eroding the core concept of
democracy -- power resides in We the People. Key to this was the courts'
granting to corporations the rights of persons, including 14th Amendment
rights and eventually even free speech rights. POCLAD points out the
obvious: Rights can be claimed only by persons, and corporations aren't
real persons but only fictional ones, creations under law.
According to POCLAD, we should move beyond fighting corporations on their
terms -- battling to control the worst of their offenses through regulatory
law or asking them to curb abuses through voluntary codes of conduct.
Instead, citizen-activists should demand that corporations act responsibly
in accord with their charters or face charter revocation, the death penalty
for corporations.
Along the way, POCLAD retells some American history, with two main effects.
First, it denaturalizes the corporation -- and by implication capitalism --
showing that like any other system it is the product of human choices, not
some unchangeable natural order. Second, POCLAD members remind us of past
resistance to corporations -- from the first half of America's history when
corporations were kept on a much shorter leash and such revocations
occurred, to the Populists' activism in the late 19th century contesting
the legitimacy of corporations, to the work of the early labor movement to
articulate an alternative to capitalism. For progressive political change
to be possible, people not only have to understand the nature of the
systems and institutions that wield power, but also see that it is possible
for systems to change.
The book points out that corporations do not simply engage in business but
govern much of our lives, in a system that disadvantages natural persons
doing battle with these fictional persons. Defying Corporations, Defining
Democracy makes this point particularly well in discussing labor law, which
gives management huge advantages over workers trying to organize. The
authors also argue cogently that whatever short-term victories citizens and
environmental groups have won, or can win, in regulatory agencies, the
ecological health of the planet has deteriorated, and will continue to
deteriorate. So long as corporations can accumulate the wealth and power
that contemporary law and politics allows, progressive activists start out
in a hole.
As these letters, essays, and speeches (all short and easy to digest) lay
out this case, it becomes clear quickly the POCLAD folks have made the
strategic choice to focus on corporations and avoid using the word
"capitalism." That decision makes sense in a country where critiques of
capitalism typically are associated with foreign ideologies (European or
Third-World socialism and communism) and totalitarian systems (the Soviet
Union and its satellites). While it is true that spirited critiques of
capitalism are a homegrown part of American history (some are referenced in
the book, such as the Knights of Labor's) and not foreign imports, at this
moment in history a strategy that focuses on the corporation is likely to
resonate more with Americans. No matter what people think about capitalism
as a system (if they think about it at all), virtually everyone has some
reason to dislike or distrust corporations; we've all been screwed by a
corporation -- as a competitor, employee, consumer, or bystander -- in some
fashion at some point.
Given that corporations and modern capitalism can't be separated or
separately defined, POCLAD's critique of the corporation goes to the heart
of the system. It is possible to highlight the key problems inherent in
capitalism -- its need for constant expansion, the exploitation of workers,
the commodification of everything -- by focusing on corporations. Indeed,
capitalism as we know it couldn't exist without the corporate form. Still,
at some point in discussion about politics and economics, people
understandably ask, "OK, you don't like what we've got -- what kind of
system do you want?"
Do left/progressive folks answer by saying we want capitalism without
corporations? Or capitalism with corporations that just have less power?
It's not clear what the first claim would mean, nor is it obvious the
second would bring substantive improvements.
Or do we articulate a vision that -- whether or not we use the term -- will
sound a lot like what traditionally has been known as socialism: no private ownership
of the means of production, worker control over production, collective/council
structures throughout the economy, participatory planning, etc. Such a system
can go by other names; for example, Michael Albert and Robin Hahnel call it "participatory
economics" (see their book Looking Forward or the web site www.parecon.org).
But in the end, it's not unreasonable for people to expect an answer to that question.
One might argue that the first step is to delegitimize the corporation,
exposing not only the way it corrupts democracy in the political sphere but
crushes people in the private. No argument there, but that first step
quickly leads to questions about vision for an alternative system. This is
not a demand for an alternative defined in great detail, which usually is a
tactic to derail criticism of the existing system. Indeed, when any system
is oppressive, it is in some sense enough to demand that the system end.
But the effectiveness of that demand is much enhanced by a clear
articulation of the underlying principles (which POCLAD offers) and some
discussion of that vision, even if tentative and sketchy (which isn't
included in this volume).
Another necessary step forward is to include a more specific accounting of
racism, sexism, and U.S. imperialism -- not as issues separate from
corporate capitalism but intricately bound up with it. It is clear POCLAD
wants to keep its eye on the prize of contesting corporate power, but
expanding the analysis can aid in that task.
In one sense, capitalism is not inherently racist or sexist -- corporations
are happy to exploit anyone in the drive for profit. But owners and
managers have used racism to divide workers and solidify control, and
sexism has been important in keeping certain jobs associated with women or
"women's work" (such as the expanding customer service sector) low paying.
Those stories are also an integral part of the history of the corporation.
It's also imperative, as the American empire seeks even greater domination
of the world, to link the corporate system to U.S. foreign policy and
militarism. At a time when expressions of patriotism run high, this may
seem risky. But it's difficult to imagine making inroads against the
corporate power at home without challenging the brutality and violence of
U.S. policy as it secures resources and markets abroad for corporations.
These are issues that left/progressive movements have to hash out. In a
world of multiple systems of repression and oppression that are enmeshed,
we have no choice but to deal with them analytically. One person or group
can decide to focus on a particular issue, but the analysis that underlies
that political action can't ignore this complexity.
Whatever differences in strategy and emphasis I might have with POCLAD,
Defying Corporations, Defining Democracy reminds us that this kind of
political work can be done in a language that speaks to ordinary people.
POCLAD avoids long, jargon-filled writing that will turn off most readers,
and that's all to the good. But too many of these short, to-the-point
pieces repeat the same themes, sometimes in pretty much the same language.
The book could have been cut in half and conveyed as much information,
making it more effective for outreach tool to the general public.
Still, leftists and progressives should read Defying Corporations, Defining
Democracy -- and keep up with the group's work through the website (www.poclad.org)
and newsletter (By What Authority) -- not only for the history and analysis it
offers but for rhetorical strategies for taking the message to the public. POCLAD
reminds us the task is not to convince policymakers and elites of the problem
of corporations but to reach the public and build a mass movement.
At a time when most people accept the big lie that there is no future
outside of capitalism, it's time to move forward with political strategies
grounded in the recognition that there is no way to think about a decent
future except outside of capitalism.
Robert Jensen is a professor of journalism at the University of Texas at
Austin, a member of the Nowar Collective, and author of the book Writing Dissent:
Taking Radical Ideas from the Margins to the Mainstream. His pamphlet, "Citizens
of the Empire," is available at http://www.nowarcollective.com/citizensoftheempire.pdf.
Other writings are available online at http://uts.cc.utexas.edu/~rjensen/freelance/freelance.htm.
He can be reached at rjensen@uts.cc.utexas.edu.
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