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Tag: Capitalism

Enough of Asshole Capitalism

By KIM BELLARD

I recently read both Plastic, Inc. (Beth Gardiner) and These Are the Plunderers (Gretchen Morgenson and Joshua Rosner), and, boy, am I mad. Nothing in either book really came as a surprise, but the degree to which some people are willing to be greedy at the expense of others is still daunting. The latter introduced me to the phrase “Asshole Capitalism,” a phrase that comes from the work of Aaron James, a philosophy professor at University of California, Irvine. It can be summed up as a system where “citizens feel entitled to unlimited personal enrichment even at social cost.”

In other words, capitalism. No wonder a recent survey found that 43% of U.S, adults view socialism favorably (although Vice President J.D. Vance finds it a hard term to define and seems to think it has to do with foreign workers and transgender athletes).

Plastic, Inc. tells the story of how, over the course of several decades, the petrochemical industry has worked to have us consume ever more plastic while not only absolving themselves of the responsibility for what happens to all that plastic but also boldly attempting to make consumers feel guilty about not doing a better job of recycling it. Those of us of a certain age might remember the “Crying Indian” littering ad. Well, that ad was sponsored and paid for by the industries that were producing the litter.

These Are the Plunderers shows how private equity firms blithely take companies and strip them of valuable assets, enriching themselves while often essentially destroying the companies. The authors focus much attention on healthcare, such as nursing homes or emergency room staffing, in which private equity ownership leads to demonstrably higher costs, job cuts, and worse care, while making boatloads of money for the private equity owners. Manufacturing, retailing, and other industries have also had victims.

Capitalism is replete with disregard for the common good. E.G., the fossil fuel industry giving us cheap gas without being responsibly for the ensuing climate change, mining companies that strip the earth while wrecking ecological damage on the environment, or manufacturers that pollute their local communities then close the factories when asked to clean up their waste. Capitalism has a very bad habit of not recognizing either costs imposed on others or costs to clean up their actions. It’s someone else’s problem, and that someone else usually ends up being those of us who pay taxes, or whose health is deemed unimportant.

Cancer alley is no secret, nor are the health risks of the fracking craze that has supercharged the profits of oil & gas companies. We’re becoming more aware of how pervasive microplastics are, and just starting to realize how bad that is for us.

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Socialism Kills

In a recent Health Alert I evaluated Paul Krugman’s claim that ObamaCare is going to save “tens of thousands of lives” and the repeal of ObamaCare will lead to the death of “tens of thousands” of uninsured people.

Krugman’s bottom line: Mitt Romney wants to let people die. The economics profession on this same subject: Krugman’s claims are hogwash.

But there is something that does cause people to die: socialism. More precisely, the suppression of free markets (the kinds of interventions Krugman routinely apologizes for) lowers life expectancy and does so substantially.

Economists associated with the Fraser Institute and the Cato Institute have found a way to measure “economic freedom” and they have investigated what difference it makes in 141 countries around the world. This work has been in progress for several decades now and the evidence is stark. Economies that rely on private property, free markets and free trade, and avoid high taxes, regulation and inflation, grow more rapidly than those with less economic freedom. Higher growth leads to higher incomes. Among the nations in the top fifth of the economic freedom index in 2011, average income was almost 7 times as great as for those countries in the bottom 20 percent (per capita gross domestic product of $31,501versus $4,545).

What difference does this make for health? Virtually, every study of the subject finds that wealthier is healthier. People with higher incomes live longer. The Fraser/Cato economists arrive at the same conclusion. Comparing the bottom fifth to the top fifth, more economic freedom adds about 20 years to life expectancy and lowers infant mortality to just over one-tenth of its level in the least free countries.

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Let’s Stop Bashing Profits and Business In Healthcare

I’m tired of profit-bashing and business-bashing in healthcare.  And every American should be, too!

Well-run, profitable businesses, along with our sense of decency, democratic institutions, education and free enterprise systems, and adherence to the rule of law, have made the United States the most extraordinary nation in recorded history.  Together they have unleashed the talents, creativity and productivity of our people, generated enormous sums of capital, and created unheard of social, economic, scientific and political advances.

Is there anything nobler than providing the environment and opportunity for people to fulfill their potential and achieve their dreams, and for providing the goods and services that enable people to raise their standard of living?  Not even the practice of medicine can do so much good for so many people. But that’s precisely what businesses do.  (That also may explain why far more Americans today are interested in job creation than restructuring healthcare.)

In our system, an individual has an idea, attracts capital, and hires people to build a product or provide a service. When they meet a need, they prosper – and attract more capital and hire more people. Everybody wins.  If they fail, they alone suffer the consequences.  That’s what capitalism is all about and that’s what has made America great.

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