A review of "Supercapitalism: The Transformation of Business, Democracy, and Everyday Life" — 1 year ago
Although I agree with Reich’s argument that we, as citizens, have the duty to force our politicians to pass laws to mandate social and regulatory changes that we desire, I also think that he lets corporations off the hook.
Reich is correct that corporations have an obligation to maximize profits for their shareholders and minimize costs of all sorts, and that they must do so by attempting to obtain “the best deals” that they can on both sides of the equation. He’s also right that corporations have no obligation to do anything to help or protect the communities that they work in or to do anything for their workers that isn’t mandated by law. I’m even willing to accept that any efforts they might make to be more “socially responsible” are only sensible to the extent that they “buy” public opinion or dissuade or provide cover for a government that is unwilling to pass the laws needed to legally impose that social responsibility.
But I’m more skeptical of his argument that corporations that do behave in socially responsible ways necessarily open themselves up for competition by other, less virtuous companies. For some goods and services, especially those needed by or in demand from the largest group of people (food, oil, basic clothing, telephone or Internet service, television), socially responsible behavior may, indeed, be a dangerous gamble or only a cynical way to cover their less noble activities, but for “luxury brands”, socially responsible behavior certainly can be imposed as a cost of doing business. Once you get beyond the lowest-common denominator, corporate behavior is part of brand identity, and a corporation can and likely will be held responsible for its shortcomings in those areas by consumers.
Similarly, while I agree that depersonalizing corporations, and, in the process, stripping them of the “rights” they are extended that should belong only to real people, would be a good thing. But I’m not sure that Reich’s plan to drop corporate income taxes in favor of distributing those taxes to the shareholders who actually make the profits is a workable one. He argues that this change would discourage corporations from hoarding profits that are later used to conduct corporate takeovers and other aggressive market moves, and while I agree that such a goal is laudable, I’m not sure I believe that it would be possible without an extremely dramatic shakeup in the way that government and business interact.
His argument that government representatives, especially members of congress, have a powerful interest in maintaining the status quo because just as corporations benefit by contributing to political campaigns through lobbying efforts, the politicians benefit by “extorting” money from corporations in exchange for not imposing regulations or even passing legislation that directly benefits contributors, strikes me as true. But I don’t see American consumer citizens getting upset enough about this corrosive situation to be able to force their representatives to actually vote against their own best interests.
Larry Lessig’s Change Congress movement represents one of the few organizations that’s trying to organize both citizens and political candidates to reform the corruption that is endemic to our current system. Perhaps Reich and Lessig should get together and see if Change Congress’s goals are compatible with Reich’s arguments, and to work together to help make government and citizens step up to tackle the hard work needed to make government responsible to citizens rather than corporate money.







