Supercapitalism Quotes

“Unions, as we have seen, pushed for and won legislation that legitimized collective bargaining. Small farmers got federal price supports and a voice in setting agricultural policy. Farm cooperatives, like unions, won exemption from federal antitrust laws. Small retailers obtained protection against retail chains through state “fair trade” laws and the federal Robinson-Patman Act, requiring wholesalers to charge all retailers the same price regardless of size and preventing chains from cutting prices.”
― Robert B. Reich, Supercapitalism: The Transformation of Business, Democracy and Everyday Life

“William H. Davis, then director of the government’s Office of Economic Stabilization, estimated that industry was so profitable it could raise wages as much as 40 to 50 percent without raising prices. President Harry S. Truman, who felt he had enough on his plate without getting involved in management-labor disputes, repudiated Davis’s calculation and announced Davis was out of a job.”
― Robert B. Reich, Supercapitalism: The Transformation of Business, Democracy and Everyday Life

“The “[t]echnology [of mass production], with its companion commitment of time and capital, means that the needs of the consumer must be anticipated—by months or years,” explained John Kenneth Galbraith, one of the few economists of the time who understood the corporate planning system. The large corporation, therefore, “must exercise control over what is sold. It must exercise control over what is supplied. It must replace the market with planning…. Much of what the firm regards as planning consists in minimizing or getting rid of market influences.”29 The giant corporation of mid-century America necessarily possessed vast discretion and economic power.”
― Robert B. Reich, Supercapitalism: The Transformation of Business, Democracy and Everyday Life

“In America, democracy had prevailed, and the nation congratulated itself on the strength and durability of its system. Large-scale mass production was creating a large and stable middle class that was the bulwark of democracy. Here, finally, was the society J. A. Hobson had wished for a half century before, in which prosperity was so widely shared that the abundant fruits of mass production could find their market at home. Americans took it as their patriotic duty to consume. According to the chairman of President Dwight D. Eisenhower’s Council of Economic Advisers, the “ultimate purpose” of the American economy was “to produce more consumer goods.”
― Robert B. Reich, Supercapitalism: The Transformation of Business, Democracy and Everyday Life

“20 In 1932, Adolf A. Berle and Gardiner C. Means, lawyer and economics professor, respectively, published The Modern Corporation and Private Property, a highly influential study revealing that top executives of America’s giant companies were not even accountable to their own shareholders but operated the companies “in their own interest, and…divert[ed] a portion of the asset fund to their own uses.”21 The only solution, concluded Berle and Means, was to enlarge the power of all groups within the nation who were affected by the large corporation, including employees and consumers. They envisioned the corporate executive of the future as a professional administrator, dispassionately weighing the claims of investors, employees, consumers, and citizens, and allocating benefits accordingly. “[I]t seems almost essential if the corporate system is to survive—that the ‘control’ of the great corporations should develop into a purely neutral technocracy, balancing a variety of claims by various groups in the community and assigning each a portion of the income stream on the basis of public policy rather than private cupidity.”
― Robert B. Reich, Supercapitalism: The Transformation of Business, Democracy and Everyday Life

“The captains of industry did not exactly distinguish themselves as publicly spirited. A few, like Carnegie and John D. Rockefeller, established noted charities, but most echoed the sentiments of William H. Vanderbilt, the railroad tycoon, who, when asked by a reporter for the New York Times about keeping open the New York to New Haven line on the assumption that it was run for the public benefit, responded famously, “The public be damned.” Vanderbilt proceeded to give the reporter a short lecture on capitalism. “I don’t take stock in this silly nonsense about working for anybody’s good but our own because we are not. Railroads are not run on sentiment, but on business principles, and to pay.”
― Robert B. Reich, Supercapitalism: The Transformation of Business, Democracy and Everyday Life

“Like John Maynard Keynes three decades later, Hobson urged instead that advanced nations increase their domestic markets by making more of their citizens rich enough to buy domestically produced goods. “If apportionment of incomes were such as to evoke no excessive saving, full constant employment for capital and labor would be furnished at home.”7 But the world war Hobson feared would occur before enough citizens had the wherewithal to buy a substantial portion of what they produced.”
― Robert B. Reich, Supercapitalism: The Transformation of Business, Democracy and Everyday Life

“Companies are not citizens. They are bundles of contracts. The purpose of companies is to play the economic game as aggressively as possible. The challenge for us as citizens is to stop them from setting the rules. Keeping supercapitalism from spilling over into democracy is the only constructive agenda for change. All else, as I shall make clear, is frolic and detour.”
― Robert B. Reich, Supercapitalism: The Transformation of Business, Democracy and Everyday Life

“Personally, I’d be willing to sacrifice some of the benefits I get as a consumer and investor in order to achieve these social ends—as long as I knew everyone else was, too. Yet how to create new rules of the game? The market is adept at catering to us as consumers and investors, but democracy has become less responsive to us in our roles as citizens seeking to make the rules of the game fairer. That’s mainly because, as I will show in these pages, supercapitalism has spilled over into politics. The money Wal-Mart and other companies are pouring into Washington and every other major capital gets in the way.”
― Robert B. Reich, Supercapitalism: The Transformation of Business, Democracy and Everyday Life

“Capitalism has become more responsive to what we want as individual purchasers of goods, but democracy has grown less responsive to what we want together as citizens”
― Robert B. Reich, Supercapitalism: The Transformation of Business, Democracy and Everyday Life

“Capitalism’s role is to enlarge the economic pie. How the slices are divided and whether they are applied to private goods like personal computers or public goods like clean air is up to society to decide. This is the role we assign to democracy.”
― Robert B. Reich, Supercapitalism: The Transformation of Business, Democracy and Everyday Life

“Supercapitalism has triumphed as power has shifted to consumers and investors. They now have more choice than ever before, and can switch ever more easily to better deals. And competition among companies to lure and keep them continues to intensify. This means better and cheaper products, and higher returns. Yet as supercapitalism has triumphed, its negative social consequences have also loomed larger. These include widening inequality as most gains from economic growth go to the very top, reduced job security, instability of or loss of community, environmental degradation, violations of human rights abroad, and a plethora of products and services pandering to our basest desires. These consequences are larger in the United States than in other advanced economies because America has moved deeper into supercapitalism. Other economies, following closely behind, have begun to experience many of the same things. Democracy is the appropriate vehicle for responding to such social consequences. That’s where citizen values are supposed to be expressed, where choices are supposed to be made between what we want for ourselves as consumers and investors, and what we want to achieve together. But the same competition that has fueled supercapitalism has spilled over into the political process. Large companies have hired platoons of lobbyists, lawyers, experts, and public relations specialists, and devoted more and more money to electoral campaigns. The result has been to drown out voices and values of citizens. As all of this has transpired, the old institutions through which citizen values had been expressed in the Not Quite Golden Age—industry-wide labor unions, local citizen-based groups, “corporate statesmen” responding to all stakeholders, and regulatory agencies—have been largely blown away by the gusts of supercapitalism. Instead of guarding democracy against the disturbing side effects of supercapitalism, many reformers have set their sights on changing the behavior of particular companies—extolling them for being socially virtuous or attacking them for being socially irresponsible. The result has been some marginal changes in corporate behavior. But the larger consequence has been to divert the public’s attention from fixing democracy. 1”
― Robert B. Reich, Supercapitalism: The Transformation of Business, Democracy and Everyday Life