‘Supercapitalism Threatens Democracy’

‘Supercapitalism Threatens Democracy’

by James Parks, Sep 17, 2007

Every day, we hear the mantra that where capitalism flourishes, democracy is sure to follow. But that is not necessarily the case, says former labor secretary Robert Reich, pointing to nondemocratic nations such as China and Singapore, which are moving full throttle toward capitalistic economies.

Rather, today’s highly competitive “supercapitalism” is endangering democracy by taking power out of the hands of ordinary citizens.

Reich says that over the past 30 years, global capitalism has developed into a turbocharged, Web-based system in which consumers and producers can access almost anything just about anywhere. But, he says, this intense competition generates negative social consequences:

There are social consequences that supercapitalism creates—whether it’s global warming, lower wages, unstable jobs or greater inequality—and we have to examine carefully who pays what cost. These results of supercapitalism require a response. We cannot depend on companies’ morality to change their ways.

Reich, a professor at the Goldman School of Public Policy at the University of California-Berkeley and labor secretary during the Clinton administration, spoke to some 150 activists and scholars at the Economic Policy Institute (EPI) last week as part of the Agenda for Shared Prosperity