Category Archives: capitalism

Rebelling against the globalization of corruption

The New York Times reports:

Hundreds of thousands of disillusioned Indians cheer a rural activist on a hunger strike. Israel reels before the largest street demonstrations in its history. Enraged young people in Spain and Greece take over public squares across their countries.

Their complaints range from corruption to lack of affordable housing and joblessness, common grievances the world over. But from South Asia to the heartland of Europe and now even to Wall Street, these protesters share something else: wariness, even contempt, toward traditional politicians and the democratic political process they preside over.

They are taking to the streets, in part, because they have little faith in the ballot box.

“Our parents are grateful because they’re voting,” said Marta Solanas, 27, referring to older Spaniards’ decades spent under the Franco dictatorship. “We’re the first generation to say that voting is worthless.”

Economics have been one driving force, with growing income inequality, high unemployment and recession-driven cuts in social spending breeding widespread malaise. Alienation runs especially deep in Europe, with boycotts and strikes that, in London and Athens, erupted into violence.

But even in India and Israel, where growth remains robust, protesters say they so distrust their country’s political class and its pandering to established interest groups that they feel only an assault on the system itself can bring about real change.

Young Israeli organizers repeatedly turned out gigantic crowds insisting that their political leaders, regardless of party, had been so thoroughly captured by security concerns, ultra-Orthodox groups and other special interests that they could no longer respond to the country’s middle class.

In the world’s largest democracy, Anna Hazare, an activist, starved himself publicly for 12 days until the Indian Parliament capitulated to some of his central demands on a proposed anticorruption measure to hold public officials accountable. “We elect the people’s representatives so they can solve our problems,” said Sarita Singh, 25, among the thousands who gathered each day at Ramlila Maidan, where monsoon rains turned the grounds to mud but protesters waved Indian flags and sang patriotic songs.

“But that is not actually happening. Corruption is ruling our country.”

Increasingly, citizens of all ages, but particularly the young, are rejecting conventional structures like parties and trade unions in favor of a less hierarchical, more participatory system modeled in many ways on the culture of the Web.

In that sense, the protest movements in democracies are not altogether unlike those that have rocked authoritarian governments this year, toppling longtime leaders in Tunisia, Egypt and Libya.

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Traders are more dangerous than psychopaths — and Goldman Sachs rules the world

Apparently, if provided with the right kind of parenting, children who might have grown up to become psychopaths can instead become successful stock market traders. What seems unclear is whether this would make society as a whole any safer.

Chris Barth writes:

The hubbub is just starting to pick up after NZZ Online’s report yesterday on a University of St. Gallen study that shows stock market traders display similarities to certified psychopaths. The study, authored by MBA students Pascal Scherrer and Thomas Noll, compares decisions made by 27 equity, derivative and forex traders in a computer simulation against an existing study of 24 psychopaths in high-security hospitals in Germany. Not only do the traders match their counterparts, but, as Der Speigel succinctly puts it, the “stockbrokers’ behavior is more reckless and manipulative than that of psychopaths.”

The traders, according to Noll, were fixated on gaining more than their competitors in the computer simulation – to the extent that they “spent a lot of energy trying to damage their opponents.” He compared the behavior to bashing a neighbor’s fancy car with a baseball bat in order to make your own car the nicest in the neighborhood.

This is fascinating stuff, but it’s not entirely new. In 2004, New Scientist compared ladder-climbing corporate employees to psychopaths for their shared characteristics of lacking empathy and compassion while thriving under stress. In 2005, Antoine Bechara, an associate professor of neurology at the University of Iowa, told the Wall Street Journal, “It’s possible that people who are high-risk takers or good investors may have what you call a functional psychopathy.” In 1996, Jason Bennetto, a crime correspondent for The Independent, noted that “stockbrokers share many of the same characteristics as criminal psychopaths.” That same year, a Scottish University found that “with the right parenting [psychopaths] can become successful stockbrokers instead of serial killers.”

In an interview on the BBC, Alessio Rastani, a stock market and forex trader in Europe, provided a glimpse inside the minds of those who see golden opportunities in the misfortune of others.

Rastani says the stock market is “toast” and to those who imagine that collective government action will prevent another recession he says: “the governments don’t rule the world. Goldman Sachs rules the world.”

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Life after capitalism

Robert Skidelsky writes:

In 1995, I published a book called The World After Communism. Today, I wonder whether there will be a world after capitalism.

That question is not prompted by the worst economic slump since the 1930s. Capitalism has always had crises, and will go on having them. Rather, it comes from the feeling that Western civilization is increasingly unsatisfying, saddled with a system of incentives that are essential for accumulating wealth, but that undermine our capacity to enjoy it. Capitalism may be close to exhausting its potential to create a better life – at least in the world’s rich countries.

By “better”, I mean better ethically, not materially. Material gains may continue, though evidence shows that they no longer make people happier. My discontent is with the quality of a civilization in which the production and consumption of unnecessary goods has become most people’s main occupation.

This is not to denigrate capitalism. It was, and is, a superb system for overcoming scarcity. By organising production efficiently, and directing it to the pursuit of welfare rather than power, it has lifted a large part of the world out of poverty.

Yet what happens to such a system when scarcity has been turned to plenty? Does it just go on producing more of the same, stimulating jaded appetites with new gadgets, thrills, and excitements? How much longer can this continue? Do we spend the next century wallowing in triviality?

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