Yves here. One minor quibble. Capitalism is not monolithic. It comes
in many forms. For instance, for decades in Sweden, the government
placed strong curbs on private rights. In Japan, entrepreneurs are
revered for creating employment, not for generating profit.
And Adam Smith himself called for a capitalism with strong curbs on monopolists and prohibitions against employers colluding to suppress wages.
Capitalism cannot exist without a government apparatus. A market system depends on governments to enforce contracts and other “rules of the game,” like truth in advertising. Private businessmen also have time horizons that are too short to allow for the private financing and operation of infrastructure, so that again falls to public or quasi-public entities, like utilities.
The necessity of a meaningful government apparatus for a capitalist system to operate means it can intervene in corporate-labor relations to prevent capitalists from following their own impulses to their ultimate detriment. For instance, in the 1960s, the auto industry arrived at an understanding with labor called “The Treaty of Detroit” that served as a template for other labor negotiations. President Kennedy jawboned the carmakers. He made clear that if the benefits of productivity gains were not shared with workers, he would push for legislation that would require that.
http://www.nakedcapitalism.com/2015/12/capitalism-not-china-is-to-blame-for-the-current-global-economic-decline.html
And Adam Smith himself called for a capitalism with strong curbs on monopolists and prohibitions against employers colluding to suppress wages.
Capitalism cannot exist without a government apparatus. A market system depends on governments to enforce contracts and other “rules of the game,” like truth in advertising. Private businessmen also have time horizons that are too short to allow for the private financing and operation of infrastructure, so that again falls to public or quasi-public entities, like utilities.
The necessity of a meaningful government apparatus for a capitalist system to operate means it can intervene in corporate-labor relations to prevent capitalists from following their own impulses to their ultimate detriment. For instance, in the 1960s, the auto industry arrived at an understanding with labor called “The Treaty of Detroit” that served as a template for other labor negotiations. President Kennedy jawboned the carmakers. He made clear that if the benefits of productivity gains were not shared with workers, he would push for legislation that would require that.
http://www.nakedcapitalism.com/2015/12/capitalism-not-china-is-to-blame-for-the-current-global-economic-decline.html
No comments:
Post a Comment