must read 1/3
Chomsky: The U.S. behaves nothing like a democracy
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According to received doctrine, we live in capitalist democracies, which are the best possible system, despite some flaws. There’s been an interesting debate over the years about the relation between capitalism and democracy, for example, are they even compatible? I won’t be pursuing this because I’d like to discuss a different system – what we could call the “really existing capitalist democracy”, RECD for short, pronounced “wrecked” by accident. To begin with, how does RECD compare with democracy? Well that depends on what we mean by “democracy”. There are several versions of this. One, there is a kind of received version. It’s soaring rhetoric of the Obama variety, patriotic speeches, what children are taught in school, and so on. In the U.S. version, it’s government “of, by and for the people”. And it’s quite easy to compare that with RECD.
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it’s concluded that for roughly 70% of the population – the lower 70% on the wealth/income scale – they have no influence on policy whatsoever. They’re effectively disenfranchised. As you move up the wealth/income ladder, you get a little bit more influence on policy. When you get to the top, which is maybe a tenth of one percent, people essentially get what they want, i.e. they determine the policy. So the proper term for that is not democracy; it’s plutocracy.
Inquiries of this kind turn out to be dangerous stuff because they can tell people too much about the nature of the society in which they live. So fortunately, Congress has banned funding for them, so we won’t have to worry about them in the future.
These characteristics of RECD show up all the time. So the major domestic issue in the United States for the public is jobs. Polls show that very clearly. For the very wealthy and the financial institutions, the major issue is the deficit.
Europe, incidentally, is much worse – so outlandish that even The Wall Street Journal has been appalled by the disappearance of democracy in Europe. …[I]t had an article [this year] which concluded that “the French, the Spanish, the Irish, the Dutch, Portuguese, Greeks, Slovenians, Slovakians and Cypriots have to varying degrees voted against the currency bloc’s economic model since the crisis began three years ago. Yet economic policies have changed little in response to one electoral defeat after another. The left has replaced the right; the right has ousted the left. Even the center-right trounced Communists (in Cyprus) – but the economic policies have essentially remained the same: governments will continue to cut spending and raise taxes.” It doesn’t matter what people think and “national governments must follow macro-economic directives set by the European Commission”. Elections are close to meaningless, very much as in Third World countries that are ruled by the international financial institutions. That’s what Europe has chosen to become. It doesn’t have to.
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The same is true on national healthcare. The U.S., as you may know, has a health system which is an international scandal, it has twice the per capita costs of other OECD countries and relatively poor outcomes. The only privatized, pretty much unregulated system. The public doesn’t like it. They’ve been calling for national healthcare, public options, for years, but the financial institutions think it’s fine, so it stays: stasis. In fact, if the United States had a healthcare system like comparable countries there wouldn’t be any deficit. The famous deficit would be erased, which doesn’t matter that much anyway.
One of the most interesting cases has to do with taxes. For 35 years there have been polls on ‘what do you think taxes ought to be?’ Large majorities have held that the corporations and the wealthy should pay higher taxes. They’ve steadily been going down through this period.
On and on, the policy throughout is almost the opposite of public opinion, which is a typical property of RECD.
In the past, the United States has sometimes, kind of sardonically, been described as a one-party state: the business party with two factions called Democrats and Republicans. That’s no longer true. It’s still a one-party state, the business party. But it only has one faction. The faction is moderate Republicans, who are now called Democrats. There are virtually no moderate Republicans in what’s called the Republican Party and virtually no liberal Democrats in what’s called the Democratic [sic] Party. It’s basically a party of what would be moderate Republicans and similarly, Richard Nixon would be way at the left of the political spectrum today. Eisenhower would be in outer space.
There is still something called the Republican Party, but it long ago abandoned any pretence of being a normal parliamentary party. It’s in lock-step service to the very rich and the corporate sector and has a catechism that everyone has to chant in unison, kind of like the old Communist Party. The distinguished conservative commentator, one of the most respected – Norman Ornstein – describes today’s Republican Party as, in his words, “a radical insurgency – ideologically extreme, scornful of facts and compromise, dismissive of its political opposition” – a serious danger to the society, as he points out.
In short, Really Existing Capitalist Democracy is very remote from the soaring rhetoric about democracy. But there is another version of democracy. Actually it’s the standard doctrine of progressive, contemporary democratic theory. So I’ll give some illustrative quotes from leading figures – incidentally not figures on the right. These are all good Woodrow Wilson-FDR-Kennedy liberals, mainstream ones in fact. So according to this version of democracy, “the public are ignorant and meddlesome outsiders. They have to be put in their place. Decisions must be in the hands of an intelligent minority of responsible men, who have to be protected from the trampling and roar of the bewildered herd”. The herd has a function, as it’s called. They’re supposed to lend their weight every few years, to a choice among the responsible men. But apart from that, their function is to be “spectators, not participants in action” – and it’s for their own good. Because as the founder of liberal political science pointed out, we should not succumb to “democratic dogmatisms about people being the best judges of their own interest”. They’re not. We’re the best judges, so it would be irresponsible to let them make choices just as it would be irresponsible to let a three-year-old run into the street. Attitudes and opinions therefore have to be controlled for the benefit of those you are controlling. It’s necessary to “regiment their minds”. It’s necessary also to discipline the institutions responsible for the “indoctrination of the young.” All quotes, incidentally. And if we can do this, we might be able to get back to the good old days when “Truman had been able to govern the country with the cooperation of a relatively small number of Wall Street lawyers and bankers.” This is all from icons of the liberal establishment, the leading progressive democratic theorists. Some of you may recognize some of the quotes.
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The first democratic revolution was England in the 1640s. There was a civil war between king and parliament. But the gentry, the people who called themselves “the men of best quality”, were appalled by the rising popular forces that were beginning to appear on the public arena. They didn’t want to support either king or parliament. Quote their pamphlets, they didn’t want to be ruled by “knights and gentlemen, who do but oppress us, but we want to be governed by countrymen like ourselves, who know the people’s sores”. That’s a pretty terrifying sight. Now the rabble has been a pretty terrifying sight ever since. Actually it was long before. It remained so a century after the British democratic revolution. The founders of the American republic had pretty much the same view about the rabble. So they determined that “power must be in the hands of the wealth of the nation, the more responsible set of men. Those who have sympathy for property owners and their rights”, and of course for slave owners at the time. In general, men who understand that a fundamental task of government is “to protect the minority of the opulent from the majority”. Those are quotes from James Madison, the main framer – this was in the Constitutional Convention, which is much more revealing than the Federalist Papers which people read. The Federalist Papers were basically a propaganda effort to try to get the public to go along with the system. But the debates in the Constitutional Convention are much more revealing. And in fact the constitutional system was created on that basis. I don’t have time to go through it, but it basically adhered to the principle which was enunciated simply by John Jay, the president of the Continental Congress, then first Chief Justice of the Supreme Court, and as he put it, “those who own the country ought to govern it”. That’s the primary doctrine of RECD to the present.
There’ve been many popular struggles since – and they’ve won many victories. The masters, however, do not relent. The more freedom is won, the more intense are the efforts to redirect the society to a proper course.
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Well, another important feature of RECD is that the public must be kept in the dark about what is happening to them. The “herd” must remain “bewildered”. The reasons were explained lucidly by the professor of the science of government at Harvard – that’s the official name – another respected liberal figure, Samuel Huntington. As he pointed out, “power remains strong when it remains in the dark. Exposed to sunlight, it begins to evaporate”. Bradley Manning is facing a life in prison for failure to comprehend this scientific principle. Now Edward Snowden as well.
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The tasks of ensuring that the rabble keep to their function as bewildered spectators, takes many forms Iran just had an election. And it was rightly criticized on the grounds that even to participate, you had to be vetted by the guardian council of clerics. In the United States, you don’t have to be vetted by clerics, but rather you have to be vetted by concentrations of private capital. Unless you pass their filter, you don’t enter the political system – with very rare exceptions.
There are many mechanisms, too familiar to review, but that’s not safe enough either. There are major institutions that are specifically dedicated to undermining authentic democracy. One of them is called the public relations industry. A huge industry, it was in fact developed on the principle that it’s necessary to regiment the minds of men, much as an army regiments its soldiers – I was actually quoting from one of its leading figures before.
The role of the PR industry in elections is explicitly to undermine the school-child version of democracy. What you learn in school is that democracies are based on informed voters making rational decisions. All you have to do is take a look at an electoral campaign run by the PR industry and see that the purpose is to create uninformed voters who will make irrational decisions. For the PR industry that’s a very easy transition from their primary function. Their primary function is commercial advertising. Commercial advertising is designed to undermine markets. If you took an economics course you learned that markets are based on informed consumers making rational choices. If you turn on the TV set, you see that ads are designed to create irrational, uninformed consumers making irrational choices. The whole purpose is to undermine markets in the technical sense.
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There was interesting commentary on this in the business press, primarily The London Financial Times, which had a long article, interviewing executives about what they thought about the election. And they were quite euphoric about this. They said this gives them a new model for how to delude the public.
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In the United States, financial institutions, big banks mostly, had 40% of corporate profit in 2007. That was on the eve of the financial crisis, for which they were largely responsible. After the crisis, a number of professional economists – Nobel laureate Robert Solow, Harvard’s Benjamin Friedman – wrote articles in which they pointed out that economists haven’t done much study of the impact of the financial institutions on the economy. Which is kind of remarkable, considering its scale. But after the crisis they took a look and they both concluded that probably the impact of the financial institutions on the economy is negative. Actually there are some who are much more outspoken than that. The most respected financial correspondent in the English-speaking world is Martin Wolf of the Financial Times. He writes that the “out-of-control financial sector is eating out the modern market economy from the inside, just as the larva of the spider wasp eats out the host in which it has been laid”. By “the market economy” he means the productive economy.
There’s a recent issue of the main business weekly, Bloomberg Business Week, which reported a study of the IMF that found that the largest banks make no profit. What they earn, according to the IMF analysis, traces to the government insurance policy, the so-called too-big-to-fail policy. There is a widely publicized bailout, but that’s the least of it. There’s a whole series of other devices by which the government insurance policy aids the big banks: cheap credit and many other things. And according to the IMF at least, that’s the totality of their profit. The editors of the journal say this is crucial to understanding why the big banks present such a threat to the global economy – and to the people of the country, of course.
After the crash, there was the first serious attention by professional economists to what’s called systemic risk. They knew it existed but it wasn’t much a topic of investigation. ‘Systemic risk’ means the risk that if a transaction fails, the whole system may collapse. That’s what’s called an externality in economic theory. It’s a footnote. And it’s one of the fundamental flaws of market systems, a well-known, inherent flaw, is externalities. Every transaction has impacts on others which just aren’t taken into account in a market transaction. Systemic risk is a big one. And there are much more serious illustrations than that. I’ll come back to it.