[10783] in Public-Access_Computer_Systems_Forum
A Capitalist Paradox
daemon@ATHENA.MIT.EDU (Vigdor Schreibman - FINS)
Mon Nov 4 21:03:29 1996
Date: Mon, 04 Nov 1996 15:45:04 -0600 (CST)
From: Vigdor Schreibman - FINS <fins@access.digex.net>
To: Multiple recipients of list PACS-L <PACS-L@UHUPVM1.UH.EDU>
Reply-To: Public-Access Computer Systems Forum <PACS-L@UHUPVM1.UH.EDU>
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FINS: Communicating the Emerging Philosophy of The Information Age
FEDERAL INFORMATION NEWS SYNDICATE
Vol IV, Issue No. 23 (158 lines) November 4, 1996
CLOSING THE "VALUES-GAP":
A Capitalist Paradox
By Vigdor Schreibman
The classic competition between communism and capitalism has
ended successfully, while the unfinished business of "free
market" capitalism moves to the forefront of global attention.
Paradoxically, however, the triumph of capitalism raises a
basic question, which could not be fairly confronted during
the former competition: Shall we celebrate the prized economic
efficiency of market theory or recognize its fictitious basis?
The theory of the marketplace, or the economist's model of
"competitive equilibrium," is based on "the entirely
independent behavior of individuals." The market principle
and organizational structures derived from this idea (e.g.,
National Information Infrastructure!), largely disregard the
social and environmental consequences of economic activity.
However, philosophy and science have rejected this theory.
For example, Martin Heideggar pointed out that "meaning is
fundamentally social" and social activity is "the ultimate
foundation of human intelligibility, and even of existence."
Similarly, David Bohm, a leading quantum theorist observed
that thought itself was largely a "collective phenomenon,"
drawing an analogy between the "collective properties of
particles and the way in which thought works."
Market theory is at bottom a "broadly perpetrated fiction,"
according to the American sociologist James Coleman, in his
major work, Foundations of Social Theory (1990). Moreover,
Cambridge scholar Paul Ormerod proposes in, The Death of
Economics (1995), a thoroughgoing reconsideration of market
theory. Ormerod observes that one should recognize two
interconnected ideas: first, there is such a thing as society;
and second, the behavior of the economy as a whole cannot be
deduced from the simple aggregation of its component parts.
From the myriad decisions taken at the micro-level by
individuals and companies, Ormerod says, "complex patterns of
behavior emerge at the macro-level of the system as a whole.
These patterns do not simply relate to the workings of the
economy in isolation. They define the social norms, the
social and cultural context in which the economy operates."
As a consequence of the market theory, moral responsibility
of private enterprise has been severely undermined, defeating
the social contract democracy is dependent upon. Moreover,
globalization of the economy is rapidly diminishing the role
of democratic institutions, which are being replaced by a
species of "Global Gladiators," as Alvin Toffler calls the
emerging multinational behemoths. These private organizations
have no loyalty to the State, and they are governed by
unelected commissions, without public accountability.
In addition, without effective public intervention support
for the public goods, which are vital to the well being of
citizens and the survival of the biosphere of the Planet
Earth, must adjust themselves to fragmented economic
transactions. Even the basis for public support is being
constrained. For example, the Computer Systems Policy Project
(CSPP) comprised of 12 leading American computer manufactures,
issued a report Oct 23, 1996, "Public Policy in the
Information Age." They call on policy makers to, "reserve
prescriptive government policies for circumstances ... in
which the need for intervention is clear and overwhelming."
The traditional "universal service" vision of telephone
systems would also be constrained under the CSPP proposal in
preference to "common points of access to public facilities."
The same day that CSPP released their report, an op-ed piece
written by Mary R. Summerville, president of the American
Library Association, was published in The Washington Post.
Summerville called for free access to the Internet by schools
and libraries. The new media would, thereby, obtain a direct
line right into the main learning systems of the nation.
Following the television model of an electronic "wasteland"
oriented to maximize corporate profits, this structure would
offer corporate propaganda systems immediate access to young
Americans during their formative years, under the aegis of
trusted institutions. Other phone users would pay the cost.
Marc Rotenberg, of Electronic Privacy Information Center has
related how, "the collective interests of the nation were shut
out" of the Telecommunications bill (approved earlier this
year), calling the bill "a blueprint for hi-tech feudalism."
[Fins-NC3-12]. Market ideology would constrain the ability of
the people to marshall public resources to maximize public
welfare, but grant State charters in perpetuity to a species
of Global Gladiators so that they can unilaterally manage the
world for the benefit of themselves. That ideology would also
leave in ruin our inner cities, schools, roads and bridges.
It would classify as "surplus labor," tens of millions of
workers, and institute a hardline labor strategy to "dismantle
the labor laws and cut social safety nets" [Fins-NC4-18].
These outcomes of market theory are not a sane and efficient
use of material resources or human capital. In working through
the unfinished business of the United States, recognition of
the "broadly perpetrated fiction," of marketplace theory
should be the first order of priority. Democratic alternatives
to the market theory, which can make possible a creative leap
forward, are available or obtainable once that irrational,
self-imposed assumption is squarely confronted and removed.
For example, Americans can pursue "sustainable development,"
governed by the shared values of economic prosperity, social
equity, and ecological integrity as mutually reinforcing
national goals. Those were the goals recommended by the
President's Council on Sustainable Development [Fins-SD-13,14;
Fins-SR4-06]. In addition, resources of the Federal Government
can be deployed to stimulate growth and drive unemployment
down, while controlling inflation. This is the public policy
urged by the 1996 Nobel Prize laureate in economics, William
Vickrey, past President of the American Economic Association
in 1993. Other nations have cut unemployment far below that
of the United States. Ormerod reports that from 1978 to 1992,
in real terms, the official unemployment rate was 6.9% in the
United States, but by pursuing a full employment policy the
rate was less than half that in five other countries: Austria-
3%; Norway-3%; Sweden-2.6%; Japan-2%; and Switzerland-0.8%.
A democratic National Information Infrastructure, can
channel the use of emerging technologies to sustain democracy
free from profit pressures [Fins-CS-06]. Valid and relevant
information requires a strong public information system
managed by the Federal Depository Library Program [Fins-NC4-
15]. Public Journalism can help marshall meaningful citizens
participation in changing the national agenda [Fins-NC4-21].
In his epic poem, The Mask of Anarchy, poet Shelley wrote:
"Rise like lions after slumber/In unvanquishable number/Shake
your chains to earth like dew/Which in sleep had fallen on
you--/Ye are many--they are few." It's time for Americans, in
unvanguishable number, to shake their chains to earth.
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