Chomsky: The U.S. Behaves Nothing Like a Democracy, But You'll Never Hear About It in Our 'Free Press'
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What about the productive economy under RECD? Here there's a mantra too. The mantra is based on entrepreneurial initiative and consumer choice in a free market. There are agreements established called free-trade agreements, which are based on the mantra. That's all mythology.
The reality is that there is massive state intervention in the productive economy and the free-trade agreements are anything but free-trade agreements. That should be obvious. Just to take one example: The information technology (IT) revolution, which is driving the economy, that was based on decades of work in effectively the state sector - hard, costly, creative work substantially in the state sector, no consumer choice at all, there was entrepreneurial initiative but it was largely limited to getting government grants or bailouts or procurement. Except by some economists, that's underestimated but a very significant factor in corporate profit. If you can't sell something, hand it over the government. They'll buy it.
After a long period - decades in fact - of hard, creative work, the primary research and development, the results are handed over to private enterprise for commercialization and profit. That's Steve Jobs and Bill Gates and so on. It's not quite that simple of course. But that’s a core part of the picture. The system goes way back to the origins of industrial economies, but it's dramatically true since WWII that this ought to be the core of the study of the productive economy.
Another central aspect of RECD is concentration of capital. In just the past 20 years in the United States, the share of profits of the two hundred largest enterprises has very sharply risen, probably the impact of the Internet, it seems. These tendencies towards oligopoly also undermine the mantra, of course. Interesting topics but I won't pursue them any further.
Instead, I'd like to turn to another question. What are the prospects for the future under RECD? There's an answer. They're pretty grim. It's no secret that there are a number of dark shadows that hover over every topic that we discuss and there are two that are particularly ominous, so I'll keep to those, though there are others. One is environmental catastrophe. The other is nuclear war. Both of which of course threaten the prospects for decent survival and not in the remote future.
I won't say very much about the first, environmental catastrophe. That should be obvious. Certainly the scale of the danger should be obvious to anyone with eyes open, anyone who is literate, particularly those who read scientific journals. Every issue of a technical journal virtually has more dire warnings than the last one.
There are various reactions to this around the world. There are some who seek to act decisively to prevent possible catastrophe. At the other extreme, major efforts are underway to accelerate the danger. Leading the effort to intensify the likely disaster is the richest and most powerful country in world history, with incomparable advantages and the most prominent example of RECD - the one that others are striving towards.
Leading the efforts to preserve conditions in which our immediate descendants might have a decent life, are the so-called "primitive" societies: First Nations in Canada, Aboriginal societies in Australia, tribal societies and others like them. The countries that have large and influential indigenous populations are well in the lead in the effort to "defend the Earth". That's their phrase. The countries that have driven indigenous populations to extinction or extreme marginalization are racing forward enthusiastically towards destruction. This is one of the major features of contemporary history. One of those things that ought to be on front pages. So take Ecuador, which has a large indigenous population. It's seeking aid from the rich countries to allow it to keep its substantial hydrocarbon reserves underground, which is where they ought to be. Now meanwhile, the U.S. and Canada are enthusiastically seeking to burn every drop of fossil fuel, including the most dangerous kind - Canadian tar sands - and to do so as quickly and fully as possible - without a side glance on what the world might look like after this extravagant commitment to self-destruction. Actually, every issue of the daily papers suffices to illustrate this lunacy. And lunacy is the right word for it. It's exactly the opposite of what rationality would demand, unless it's the skewed rationality of RECD.