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Saturday, October 10, 2009

The Negatives Come Along With the Positives in Capitalism

Filmmaker Michael Moore just recently produced another film entitled, "Capitalism: A Love Story." Moore is a self-proclaimed liberal who produces films for political propaganda. Moore is a liberal activist who is opposed to globalization, supports gun control, opposes large corporations, the Iraq War, former President George W. Bush, and even capitalism supposedly. Some of the most famous films he's produced are "Roger and Me", "Bowling for Columbine", "Fahrenheit 9/11", and "Sicko". Michael Moore was a severe critic of the past Bush administration and some of his policies such as the war on terror and the Iraq War for example. He tries to propel his audience into political activism when producing these documentaries.

The latest documentary is about capitalism. In this movie Moore excoriates the banking industry and the final hectoring of President Bush. He blames the economic meltdown of one year ago on corporate greed and Reagan-era deregulation. Even though Moore is seemingly opposed to capitalism, he defintely loves the profits from his movies that support his lifestyle. Many of these political pundits that are opposed to capitalism aren't opposed to it when it comes to themselves--they're opposed to it when it comes to the general population.

I've never seen the movie nor do I know the contents of it, but Michael Moore does address some legitimate issues when it comes to the abuse of capitalism. Even though he may be very liberal, he does address some legitimate concerns. What's dangerous when it comes to people like him is that there are elements of truth in what he says, but his whole statement isn't true. For example, he blamed much of America's economic meltdown on deregulation. He promotes the belief that government must regulate business. There is a need for limited government regulation when it comes to Wall Street and regulating anti-competitive strategies in business. Hence, you have the term "robber baron" which applied to many of America's industrialists of the nineteenth and earlieth twentieth centuries which engaged in illegal, monopolistic practices which made the industrialists as wealthy as they were. However, the Democratic Party wants to micromanage corporations and propose regulations that would strangle business and make them less profitable. There are numerous mundane regulations which would make it difficult for a business to survive and prosper. Those are terrible regulations. However, the government needs to step in and regulate those businesses which engage in monopolies, which is not good for America nor common Americans.

Capitalism is like anything else. Along with the positives come the negatives. If you read American history back in the late nineteenth century you read about the era of American industrialization. It was the era of the growth of huge corporations. What was terrible was they grew so big and they engaged in illegal practices which wiped out their competitors. That's what happened with the railroad industry, the banking industry, and the oil industry to name a few. These corporations grew so large that the entrepreneurs that owned them became removed from the business laborers. There were numerous issues that arose in the workplace such as filthy and unsafe working conditions as well as employees working long hours making low wages while those at the top were amassing huge fortunes. As a result, labor unions were formed across America. They engaged in collective bargaining and sought for higher wages, safer workplace conditions, and a seat at the bargaining table. Over the years conditions did improve for the laborers. They accrued higher wages and benefits. However, labor unions over the years have abused their power as well. Back in the 1970's, there were all sorts of labor strikes and they pressed for higher and higher wages. That's fine to a point, but the unions in the automobile industry outpriced themselves that eventually it has resulted in the loss of jobs, as well as it has partially contributed to some of the outsourcing of manufacturing jobs to other countries.

There are two sides to any issue. There have been businesses that have been abusive to their workers and there have been labor unions that have tried to twist the arms of corporations to bend to their ways. Neither of those excesses are healthy. In order to run a successful business, it takes teamwork from both labor and management. Those that manage business need to have a healthy respect for their employees and pay a fair wage as well as employees need to recognize they have a responsbility to work diligently and produce. Without production there's no profit. If there's no profit, then eventually there'll be no job. Both sides must fulfill their roles in business.

The problem isn't capitalism. Some critics think capitalism is evil because of the abuses that take place within capitalism. Of course that goes with anything. There are good and bad doctors, good and bad teachers, to name a few. Technology itself has it's positives and negatives. Why don't we phase out technology since there's been a lot of evil that has arisen from it? Why don't we eliminate doctors and teachers since there are a few that are quacks? See how foolish that kind of thinking is? Capitalism has allowed America to accrue the greatest wealth and prosperity the world has ever known. Capitalism has also afforded America with opportunities the world has never known. Capitalism has also allowed for the rise of entrepreneurship. It has allowed entrepreneurs to create spectacular inventions such as the light bulb, the automobile, the computer, the tractor, and the list continues. Think of what kind of society America would be if it wasn't for capitalism. The problem isn't capitalism. It's the abuse of capitalism that's the problem. America's laws under the Sherman Antitrust Act of the 1890's allows our government to use antitrust laws to break up illegal monopolies. We also have laws which allow for the SEC chairman on Wall Street to oversee the daily activities taking place there and to regulate any business practice that's not good for America's businesses. Another practice that would help is for America's leaders to watch what kind of trade practices that it engages itself in. America's leaders shouldn't sign trade agreements that would wipe out America's manufacturing base. America's leaders need to support trade that's both FREE and FAIR. Any kind of trade agreement that would put America's industry in peril doesn't need to be entered into. We need to renege on some of our past trade agreements such as NAFTA and CAFTA, which have allowed for America's jobs to be exported to other countries such as Mexico and China. Capitalism is good in itself--it's the negative aspects that need to be regulated.

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