-Gregory Proulx
http://www.reclaimdemocracy.org/http://www.corpwatch.org/
Monday, November 5, 2007
Embedded Liberalism Is Much Preferred
I would much rather have embedded liberalism that disembedded liberalism. Like Nate said in his response to Caitlin’s post, “[t]he emphasis is on the cheapest skilled labor and when technology changes many people are left behind. Ultimately they say that disembedded liberalism is a short-term solution.” This blind race for profit cannot continue any longer, and the myriad of “short-term solutions” must stop. If all the stops were pulled out and laissez-faire capitalism was allowed to flourish, the consequences would be disastrous. The lack of regulation would result in economic instability, environmental destruction, social injustice, and conflict. Looking back on the Enron and MCI Worldcom scandals, Hooker Chemical Company’s Love Canal, Union Carbide’s Bhopal Disaster, Halliburton’s past and present bad behavior, and the endless list of other corporate malfeasance, I can be sure that embedded liberalism is much preferred to disembedded liberalism and the great harm it could cause.
-Gregory Proulx
http://www.reclaimdemocracy.org/
http://www.corpwatch.org/
-Gregory Proulx
http://www.reclaimdemocracy.org/http://www.corpwatch.org/
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2 comments:
Yes, capitalism is fast-paced and, of course, focussed on profits, but that does not mean that should cause disruptions in the market IF it market forces are allowed to work supported by flexible labor laws so that people, whose skills become obsolete due to, for example, outsourcing of labor to China, are able to quickly adapt and find new jobs in those new niches that are created by the flexible, capitalist market. This does mean, of course, that people must take responsibility and follow the market direction, continue to (re)educate themselves, and be prepared to make career changes when necessary. The long-term solution is, after all, an efficient global market and if labor can be performed cheaper elsewhere in the world then that's a good thing; those people find much needed employment while the economies with higher labor costs save money and can put their resources to use in other areas of the market where they excel, such as, for example, services and research and development.
Embedded liberalism provides no such stimulus but rewards people for staying put in what they've done their entire lives, at the cost of an inefficient and shrinking economy and causing an enormous social burden on the elaborate welfare system. Look at the income tax rates in Sweden and Germany (they are around 50%!) and these countries, among others, have come to the conclusion that they need to reform their welfare systems and labor laws because their economies can no longer support them. After all, the profits provide the revenue to pay for education, health care, infrastructure, and (reasonable) welfare, but you must give the economy the best chance to return the highest profits or you'll run out of money to finance the social costs. Health care and its rising costs is a serious issue everywhere and there is no system in the world that is without problems. Ask the Canadians, the Dutch, British, Germans, and Swedes about the quality of their health care and the length of their waiting lists.
Disembedded liberalism is exactly the system that provides solutions long-term, as it takes time for these forces to work and show the pay-off.
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