Capitalism and Democracy:
“Capitalism is only supportive of democracy to a limited extent, for democracy requires a high level of equality, while capitalism generates inequality. To an extent capitalism has supported individual rights, which can be important dimensions of democracy; however, if inequality leaves large numbers in dire need, these rights can be weakened to the point of being almost meaningless. Thus free speech is terribly important, but it can be undermined when inequality creates a situation where de facto it is almost entirely the voices of small elites that are heard. For this reason, the emphasis on individual rights needs to be balanced by an emphasis on social rights and responsibilities that arise from a sense of social connectedness and generosity.”
Corporations:
“The large corporations that we see today are among some of the largest and most centrally planned economic units to ever exist, and as a consequence of their status as private property and legal persons, the public has only very limited and indirect ways of holding corporations publicly accountable. By law, corporations are supposed to maximize profits for stockholders, but this is a very narrow mission for such a powerful institution as the modern corporation. Further, not only is most corporate decision making behind closed doors, but it is relatively authoritarian in the sense that it is mostly top-down, being finalized by small circles of top management. Is it rational for small coteries of private individuals to have so much power over the fate of humanity? I think
not.”
Socializing Costs, Privatizing Profits:
“We must find ways to make corporations more democratically accountable, and to include in their calculations not only short-term profits but also social costs and benefits. For example, in capitalism as it exists, a corporation may contribute to respiratory illness by polluting the air, but it would be irrational for it to install expensive anti-pollution devices if by doing so, its profits would be reduced. Normally under capitalism, it is the taxpayers and consumers who will pay the tab for increased health care costs stemming from air pollution. This is an example of how capitalism privatizes profits and socializes costs. The capitalist imperative to privatize profits and socialize costs becomes particularly problematic when economic activity is generating enormous social costs by running up against the limits of human and environmental health and when it is continually deepening a horrendous inequality.”
Accountability:
“Most mainstream economists believe that by their own impulses markets can rationally price commodities, but when enormous social and environmental costs are not included in market prices, they can scarcely be thought of as rational. It follows that market prices need to be made more representative of real social costs and benefits. The “carbon tax” is one example where this is being advocated. A “sustainability tax” has also been advocated. Such taxes, however, can only be progressive from the point of view of human flourishing, if they are combined with redistributive
measures that make the necessities of life more affordable and not less to those with lower incomes. We can make markets more democratically accountable by treating them instrumentally, and this means being willing to intervene, whenever by doing so human or environmental flourishing are advanced.
Because markets are always embedded in and shaped by power relations, their outcomes are always likely to favour the powerful. Today the mainstream speaks of “market failures”, as though for the most part markets succeed. But what is the measure of their success? It surely cannot be distributive justice unless radical inequality can be made consistent with justice. Nor can it be environmental sustainability or human health.”
Robert Albritton in "Let Them Eat Junk: How Capitalism Creates Hunger and Obesity".
