Posted by Editors on February 22, 2008 at 14:49:42:
Do Capitalists LOVE Socialism?
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Posted by Editors… . on February 22, 2008 at 3:00PM
Re: Emmanuels’s Q. Do Capitalists Love Socialism?”
LJD’s excellent reply...…..In a nutshell:
"They (the Capitalists) protect and pocket the profit but want the public, via their government, to share the loss."
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Ed… Let us add a substantive explanation to the contradictory phrase... "Capitalists love Socialism."
Lee Iaococca, Former CEO of the Chrysler Corporation, is an example of being a prime contributor to such BALONEY!
Because the information about the embedded principles in a genuine socialism, as institutionalized in a SOCIAL and ECONOMIC DEMOCRACY, has been so misrepresented, its many distortions are rampant even in the most simplistic generalities…, such as, “Capitalists love socialism”…which Emmanuel questioned in a previous post., and was attributed to an undisclosed source.
Background… In 1979, Chrysler Corporation was rapidly losing its market competition with General Motors... The Auto Union watched helplessly as workers were being dismissed, adding to the nation’s army of unemployed…, investors were selling out..., and the corporation was heading for bankruptcy.
Chrysler's then Ceo, Lee Iococca, a "working" capitalist, realized that the company would go out of business if it did not receive a significant amount of money to turn the company around.
The obedient U.S. Congress, always alert to keeping with the needs of capitalism, agreed to back a $150 million loan from a number of banks and financial investors..
As reported in Wickapedia...
“Iacocca approached the United States Congress in 1979 and asked for a loan guarantee. While it is sometimes said that Congress lent Chrysler the money, it, in fact, only guaranteed the loans.
But without the backing of the U.S. Government..., Chrysler would have folded.
“Most thought this was an unprecedented move, but Iacocca pointed to the government bail-outs of the airline and railroad industries, arguing that more jobs were at stake in Chrysler's possible demise. In the end, though the decision was controversial, Iacocca received the loan guarantee from the government.”
During the negotiation requests for the $150 million government backed loan.. Iococca was reported to have declared...,
"What this system occasionally needs is a GOOD DOSE of SOCIALISM!"
Understandably, without knowledge of the essentials of a Social and Economic Democracy, this was interpreted by many, Emmanuel's "source" among them..., to mean that “Capitalists LOVE socialism.”
In his ignorance, corporate CEO Iococca. completely MIS characterized "socialism, " and left his less informed audience with the impression that "socialism" is a system of "welfare, " in which society's wealth is shared with everybody and anybody who dwells in it, even with those who are capable, but do not contribute to social production.
The truth is far from it. Any intelligent, objective reading and study of the proposed ECONOMIC Democracy heralded on this site will bare this out.
Contrary to the ignorant opinions of the Naysayers who disparage socialism as a haven for the “Do nothing…, get everything…“ there is no FREE ride for all capable adults in a genuine socialist society.
The “Do nothing…, get everything…” description is, in fact, more applicable to the capital investors who benefit from this system, the Forbes 400 of the richest investors who make up our capitalist class.
Capitalists use their investments in industries to profit from the unjust wages system which enables them to live a lifetime without being forced by economic needs to do a useful day's work, unless we can entertain the belief that a Capitalist CEO, along with capital investors, the capitalist class..., is a socially necessary function without which Society could not function.
Let's not forget that LABOR can do without capital in another kind of system..., but capital could not function without Labor in ANY kind of system.
Holders of capital investment ARE in fact, the only ones in our society who “Do nothing…, get everything…,” all from the LABOR power of OUR working class wage earners.
…..Were Iococca to first acknowledge that “socialism” does NOT use the wages system as Labor’s remuneration
…, That socialism does not use our industrial equipment to produce commodities (articles for sale with a view for private owners to profit from the labor of hired wage workers) …,
….., That socialism’s productive capacities will be used for society’s NEEDS and WANTS, rather that for the private profits of society’s private owners of our industrial technology…,
…..,That socialism codifies and enables, gives freedom to people in their work places, and in their communities, to have the FIRST and LAST word in any and all decisions made through their elected representatives in society’s Industrial and Civic government forms …,
…..That KNOWING all this…,
would Iococca, and all other corporate CEOs, having full knowledge that they will no longer have their lofty, political and social empowerments, which enable them to control and use the labor power of millions of Americans to maintain their wealth and power …,
…..That they, of the capitalist class, will become members of society’s only producing class…, working people who make up the majority of our electorate...,
(which gives us the political power to change this system anytime we get organized to do it)
…..That they will be joining all of society in contributing their skills and talents in whatever industrial and service social institutions We, the People, have decided are necessary for the maintenance of peaceful and prosperous society…, and will be remunerated fairly and justly, according to our own labor contributions to our society....,
…..Would they then still declare their “LOVE” for socialism?
We find it reasonable to conclude that most capitalists will forthrightly accept such a new life free from the worries that accompany all capitalists who today fear losing their social and political privileges…,
The new social and economic democracy has been made potentially possible by the present working class, and our own ancestors, some of whose children may very well be part of today's capitalist class..., our parents and grandparents and beyond, and WE, the everyday working people, continue to make possible the extraordinary contributions to our society’s technological innovations.
We naturally believe that in the New Society, the former capitalists will be cooperatively assuming, and democratically operating all the industrial and government institutions we decide are in our best societal and individual interests, and many capitalists will easily join in the new society of equity and equality.
And some won’t.
But since the future New Society will be the one in which they will exist…, their decisions for accepting it, or not, will be most interesting to observe.
In the words of one very astute democracy advocate, who always encouraged the advent of a social and economic democracy, We join in a chorus of harmonious voices to …,
‘Speed the day!”