I wonder whether, like me, you've been puzzled that it is necessary for the economy to continually grow when its fairly obvious that more roads and traffic, bigger shops, more development isn't really leading us to a better way of life? Why is providing the conditions for economic growth the number one priority for politicians the world over?
For an answer David Harvey comes to the rescue - “If I, as a capitalist, do not reinvest in expansion and a rival does, then after a while I am likely to be driven out of business. I need to protect and expand my market share. I have to reinvest to remain a capitalist[1].”
He also gives another very important motivation to reinvest “Money is a form of social power that can be appropriated by private persons[2].”
If I had any doubt about the power of money I only had to look at the influence exerted by huge companies over governments all over the world and at the huge amounts of money which finance political campaigns worldwide.
I reckon
we could all think of occasions when legislation designed to protect the
environment has been scuppered by
corporate power. A Conservative MP in the UK government
recently admitted that when he tried to introduce legislation banning
the use of plastic bags the industry immediately briefed every single MP
and the legislation failed.
Many people believe that corporate power was responsible for the watering down of European legislation to control chemical use in everyday products.
And then there is the undoubted power of huge supermarkets to impose their stores on local communities in the face of often huge resistance. There's little doubt that the big boys usually win out.
Capitals insatiable appetite for growth can also explain the move towards privatising the NHS in the UK. Nothing to do with what is good for the patients, more to do with what is good for capitalism. There are loads of treatments (almost certainly the most lucrative ones) which are now not available on the NHS. Private health companies must be salivating at the prospect of the massive profits they can make.
Housing is also a good investment if you are looking for capital growth so we have recently seen a huge rise in privately rented accommodation and a rise in housing costs.
When times are hard and a large proportion of the population have little disposable income to spend on nonessential goods and services, then capitalism's best channel for growth is the essentials like health and housing provision.
That power wielded by capitalist corporations is undermining democracy, is beautifully put by Fran Lebowitz:
In the Soviet Union, capitalism triumphed over communism. In this country, (US) capitalism triumphed over democracy
Many people believe that corporate power was responsible for the watering down of European legislation to control chemical use in everyday products.
And then there is the undoubted power of huge supermarkets to impose their stores on local communities in the face of often huge resistance. There's little doubt that the big boys usually win out.
Capitals insatiable appetite for growth can also explain the move towards privatising the NHS in the UK. Nothing to do with what is good for the patients, more to do with what is good for capitalism. There are loads of treatments (almost certainly the most lucrative ones) which are now not available on the NHS. Private health companies must be salivating at the prospect of the massive profits they can make.
Housing is also a good investment if you are looking for capital growth so we have recently seen a huge rise in privately rented accommodation and a rise in housing costs.
When times are hard and a large proportion of the population have little disposable income to spend on nonessential goods and services, then capitalism's best channel for growth is the essentials like health and housing provision.
That power wielded by capitalist corporations is undermining democracy, is beautifully put by Fran Lebowitz:
In the Soviet Union, capitalism triumphed over communism. In this country, (US) capitalism triumphed over democracy
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