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From one of America's foremost economic and political thinkers comes a vital analysis of our new hypercompetitive and turbo-charged global economy and the effect it is having on American democracy. With his customary wit and insight, Reich shows how widening inequality of income and wealth, heightened job insecurity, and corporate corruption are merely the logical results of a system in which politicians are more beholden to the influence of business lobbyists than to the voters who elected them. Powerful and thought-provoking, Supercapitalism argues that a clear separation of politics and capitalism will foster an enviroment in which both business and government thrive, by putting capitalism in the service of democracy, and not the other way around.
- Sales Rank: #360049 in Books
- Brand: Reich, Robert B.
- Published on: 2008-09-09
- Released on: 2008-09-09
- Original language: English
- Number of items: 1
- Dimensions: 8.00" h x .61" w x 5.13" l, .48 pounds
- Binding: Paperback
- 288 pages
From Publishers Weekly
In this compelling and important analysis of the triumph of capitalism and the decline of democracy, former labor secretary Reich urges us to rebalance the roles of business and government. Power, he writes, has shifted away from us in our capacities as citizens and toward us as consumers and investors. While praising the spread of global capitalism, he laments that supercapitalism has brought with it alienation from politics and community. The solution: to separate capitalism from democracy, and guard the border between them. Plainspoken and forceful, if somewhat repetitious, the book urges new and strengthened laws and regulations to restore authority to the citizens in us. Reich's proposals are anything but knee-jerk liberal: he calls for abolishing the corporate income tax and labels the corporate social responsibility movement distracting and even counterproductive. As in 2004's Reason, Reich exhibits perhaps too much confidence in Americans' ability to think and act in their own best interests. But he refuses to shift blame for corporations' dominance to the usual suspects, instead pointing a finger at consumers like you and me who want better deals, and from investors like us who want better returns, he writes. Provocatively argued, this book could help begin a necessary national conversation. (Sept. 6)
Copyright � Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
From Booklist
Reich, professor of public policy and former secretary of labor, argues that as the U.S. has grown stronger as a capitalist economy, it has grown weaker as a democratic nation. Reich begins by looking at the political and economic history that has contributed to the particular brand of capitalism and democracy practiced in the U.S. and how democracy is threatened as more and more Americans are engrossed in their roles as consumers and investors and less so as citizens. He recalls the "almost Golden Age" of the 1950s, a period of stability as large corporations, big labor, and government managed the interests of consumers, workers, management, and investors for the "common good." The spread of capitalism to a global level hasn't corresponded with a spread of democracy throughout the world and has led to some negative social consequences at home, including widening inequalities and a shrinking social safety net. Reich asserts that although Americans dislike what lower wages are doing to us as a nation, when weighed against lower prices or higher return on investments, we vacillate or look the other way. Reich uses tables and charts and plain speech to describe how the economy has grown so efficient and effective that the human equation is lost and how the democracy has become less and less responsive to common values. As citizens, we need to "make our purchases and investments a social choice as well as a personal one," Reich maintains. Bush, Vanessa
Review
"Reich documents in lurid detail the explosive growth of coporate lobbying expenditures and campaign contributions since the 1970s. . . . Supercapitalism is a grand debunking of the conventional wisdom in the style of John Kenneth Galbraith." —The New York Times"Reich turns the standard liberal critique of corporations on its head."—Forbes"A thoughtful and heartfelt critique of the ruthless, hell-bent-for-profit brand of capitalism that has been in vogue under Democrats and Republicans alike since roughly the end of the cold war."—Portfolio"Supercapitalism describes important and sweeping economic changes. . . . Reich has a talent for making economics accessible and sometimes even fun."—The Los Angeles Times
Most helpful customer reviews
75 of 79 people found the following review helpful.
A thoughtful, realistic view of our present situation
By Marshall Goldsmith
My friend Joanie's father was uneducated and had a very poor work ethic. Yet he worked for a union for 30 years, retired in his 50's and collected health care and pension benefits for 30 more years. His wife did not work, they lived in a nice home in the suburbs and he put three kids through college.
He was fortunate enough to have been born in the right place at the right time (as well as being of the preferred race and sex).
His grandson, Jared, Joanie's son, is 25, has three years of college education, works very hard (about 60 hours per week), lives with his mother and will probably never be able to afford the home and lifestyle experienced by his grandfather.
While the US GDP has grown rapidly, the benefits of the process are not readily visible to Jared - or millions of other young people like him.
Supercapitalism does an excellent job of explaining what has happened to the US economy - and why Jared is having a harder time than his grandfather.
While the term 'fair and balanced' is overused by parts of the media, this book is actually 'fair and balanced'!
Rather than bashing corporations - and corporate executives - Reich points out that they should be expected to do what they do - provide the best products at the lowest prices for consumers and provide a competitive return for stockholders.
He also says that we, as citizens, should become more actively involved in making decisions that are in the best interest of our country.
Reich discusses a major roadblock for citizens to overcome when he notes, "But the largest impediment to reform is one brazen fact: Many politicians and lobbyists want to continue to extort money from the private sector. That's how politicians keep their hold on power and lobbyists keep their hold on money."
Supercapitalism presents a clear analysis of why we are where we are - and a call to action for citizens to become more involved in promoting the common good.
79 of 88 people found the following review helpful.
Whether or not you agree with Reich SUPERCAPITALISM opens up a dialogue on economics and social responsibility
By Wayne Klein
Robert Reich makes a compelling argument that supercapitalism has robbed democracy of much of its power. Supercapitalism by the definition presented in the book is simple--the consumer is king and prices ALWAYS go down. What Reich looks at is the cost of low prices to companies, society, the individual and its impact on the workings of democracy. So how is democracy compromised? Reich also points out that the rise of different lobbying groups, the cost of politics and globalization as contributing to this process. This isn't a surprise. It has just become more pronounced with time.
It's not due to some large conspiracy or any hidden political agenda as much as it is driven by consumption. Ultimately Reich argues that it robs the common citizen of any control over democracy. It's not surprising that this is a highly charged issue because the economics of what benefits society (or "the common good" as Reich calls it)often gets tangled up in the web of politics. Reich also points out that the cost of supercompetitiveness, constantly falling prices is a loss to the economic and social health of America. Reich points out that everyone wants to get the lowest price possible but he also suggests that we must balance that with our desire to have decent wages and benefits. He also points out that the move towards regulation was initiated by government and that corporations went along because it kept out competition and guaranteed a top and bottom for prices allowing companies to get a profit without fear of cutting prices so low that it would put them out of business.
I should point out that this is an oversimplification of Reich's points but it does capture some of the concepts. He also makes some suggestions that would help keep the free market afloat without undermining democracy and allowing consumers to still benefit from competitive pricing. Since this is economics we are discussing politics is mixed in and might color whether or not you agree with his points.
Reich's style is breezy for a book that looks at economics, democracy and the erosion of wages, benefits. Reich comes across as fair balanced and thoughtful even as he sells his take on what is undermining American society. Ultimately it's a worthwhile book to read simply because it opens up dialogue on the social cost of constantly lowering prices and how it impacts those who live next door to us.
9 of 9 people found the following review helpful.
The Cliff's Notes version
By CrunchyCookie
This book rocks, but given the multitude of reviews out there already (and that I like it for the same reasons everyone else does), I thought I'd make my contribution by giving a quick summation of the contents.
Basically, the whole book is about how this country is supposed to run on the dual ideals of capitalism and democracy, but lately, the forces of capitalism have been crushing the democracy part. Reich says it's our own damn fault: our greed for $$$$$$$$$$ and Return On Investment have driven the vast majority of our actions as consumers and investors, causing the very social ills we complain about (job insecurity, massive wage inequality, depraved garbage on TV, etc.)
He makes the point that it's illogical to scapegoat Wal-Mart and friends no matter how big they are, since they're basically playing by the rules and doing exactly what we demand of them. In fact, when a company shows the slightest sign of generosity (i.e. when Costco's CEO lets its employees pay only 8% of their healthcare costs instead of the usual 25%) it instantly gets slammed; any CEO that isn't doing everything to "maximize shareholder value" usually gets the boot. Investors don't care about much else besides the bottom line (and even when they do, their purchasing patterns don't reflect it), which is why they're willing to pay whatever it takes to get the most profit-generating CEO (and then later, of course, everyone gripes about massively overinflated CEO salaries).
Basically, we're all hypocrites and morons, but Reich reminds us that it's not entirely our fault, because the system makes it a lot easier to express your voice via capitalism than via democracy. For example, you can choose where to shop, what companies to invest in, and what CEOs you want in charge, but if you try to speak your mind about something like how the media is debasing society, well, there's no real specific constructive outlet for it, and chances are you won't be heard above the din.
I guess this stuff should be obvious, but I never really thought about it before, and anyway it's rad how he analyzes everything so deeply, fairly, and realistically -- lessons yet to be learned by sycophants like Michael Moore.
As a sidenote, I also picked up on a few interesting nuggets of truth, like:
- Costco's customers have more than 2X the income of Wal-Mart customers. I also heard that Costco's CEO only makes a six-figure income (unheard of for CEOs) and the company pays people about $17/hour vs. Wal-Mart's $10. Sounds like a really thoughtful company.
- Reich thinks it's silly that the 80s was known as the decade of greed, as if that mentality wasn't there before. Plus, a lot of the seeds and statistics of this gaping inequality started in the 70s. Ack, I forgot which ones.
Anyway, definitely recommended.
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