CHAPTER 2 GLOBAL CAPITALISM 4 FORMS of CAPITALISM

CHAPTER 2 GLOBAL CAPITALISM

4 FORMS of CAPITALISM

#1 : Individualism (“neo-liberal”) capitalism Profit-maximization + 100% corporate commitment to the interests of stockholders

#2 Community capitalism Grass-roots “fair trade” networks to empower workers as capitalists

#3: Mixed capitalism Nationalistic mix of capitalism & socialism

#4: Protectionist capitalism Slow conversion to neoliberal capitalism with temporary period of protectionism for marginally competitive developing economies

NEO-LIBERAL CAPITALISM vs. COMMUNITY CAPITALISM

NEOLIBERAL CAPITALISM 1. “Neo-liberal” (private) capitalism is the ideology of most Western nations (especially the USA). Its bedrock principles include the importance of private enterprise, free trade, minimum government encroachment on the “invisible hand” of capitalism, & the profit maximization ethic. 2. “Neo” refers to applying this capitalist ideology to nations in addition to corporations; “liberal” refers to liberalizing the role of government in promoting private enterprise & free trade (as opposed to regulating business activity & owning or running corporations).

WHAT NEOLIB CAPITALISM VALUES 1. Business with an “invisible hand, ” but not a face 2. Single stakeholder (company owners) + single goal (profit maximization) 3. Institutional safety net for other stakeholders (employee unemployment insurance, supplier contracts, collateralized bank loans, etc. ) 4. Social Darwinism: Only the strongest, most competitive nations & corporations survive marketplace competition over the long haul. Capitalism is doing the world a favor by winnowing out the weak performers, because the strongest contribute the most to economies.

HOW PROFIT IS MAXIMIZED 1. Short-run profit goals 2. Max cost efficiency via employee & wage minimization & technology substitution 3. Social Darwinism competition 4. Productivity > People

THE SOCIAL SAFETY NET REQUIRED FOR NEOLIB CAPITALISM 1. Unemployment benefits 2. Dual breadwinner families (to reduce dependency on a single income) 3. Plentiful educational opportunities (so employees can upgrade their marketability) 4. Strong institutions to regulate & empower business 5. A plentiful job market for employees (in the event they are laid off) 6. Subsidies paid to industries such as agriculture that face stiff global competition.

“The key conditions on which (neolib) capitalism are based are absent in rural agricultural societies in many developing nations. Perfect market information, perfect access to markets & credit, and the ability to switch production techniques and outputs in response to marketing information aren’t reality in underdeveloped, non-institutionalized societies. ”

“Millions of farmers are dependent on commodities & on the price they receive for their harvest. About 50 developing nations depend on 3 or fewer primary commodity. Without benefit of government subsidies, many farmers must produce more and more crops, regardless of the price the market generates, to have any hope of earning enough to survive. The rural poor suffer most from commodity price declines. Fair trade advocates believe that a stable minimum price system is essential for sustainable incomes. ”

THE BENEFITS OF NEOLIB CAPITALISM 1. Enhances a nation’s quality of materialistic life 2. Stimulates local, national, regional, & global economic growth & innovation 3. Nationalistic capitalism provides a less violent way for nations to compete than military engagement. 4. Capitalist careers are the primary means by which most 21 st century people derive personal identity in life.

Neolib capitalism has made significant contributions to the developing world over the past decade. A recent study revealed that 40 developing nations, with almost half of the world’s total population, have been growing at a 7% annual rate for the past decade—twice the growth rate of Europe & the USA. This is also twice the number of fast-growth nations from the 2 decade period of 1980 -2000.

1. 2. 3. 4. COMMUNITY CAPITALISM (pursued in extended family-cultures) Multiple stakeholder interests (employees, suppliers, neighborhoods, customers, & investors) Satisfactory profit over the long-run (to enable the company to continue meeting the needs of its internal & external communities) Operations efficiency balanced with human considerations (to minimize disturbing the community's economic harmony) Regulated resource flows (incoming FDI & foreign currencies) & defensive protectionism (to deter foreign predatory competition)

MAJOR DIFFERENCES BETWEEN COMMUNITY vs. INDIVIDUALIST CULTURES 1. Interdependence vs. Interdependency 2. Power based on relationships vs. Institutions 3. Personalized business practices vs. Impersonal 4. Jobs vs. careers 5. Free things of life vs. Consumerism 6. Family & community first vs. Organizations first 7. Stress on economic Needs vs. Wants

8. Secure jobs vs. Job hopping 9. Corporate service to the local community vs. Service to stockholders 10. Paternalistic working environment vs. Competitive 11. Cooperation vs. Competition 12. Sustainable profit vs. Profit maximization 13. People vs. Technology 14. Reacting & adapting to change vs. Proacting & mastering

WHAT COMMUNITY CAPITALISM VALUES 1. Employee (family) economic (job) security 2. Profit reinvested into lives within the community (rather than investor individual wealth) 3. Personal bond between company & customers 4. Smaller companies & lower investor expectations 5. Focus on economic needs > wants

SUSTAINABLE INCOME & A LIVING WAGE Economically developing communities require a sustainable income for its members that ensures that they not only make enough money to subsist on (a living wage), but also enough to invest back into the community’s productive assets (both physical and human) and to preserve the environment for future generations. Wages are most sustainable only when superfluous middlemen are replaced by grass roots small business that develop thier own distribution system.

“Foreign companies established in both developed and developing countries tend to pay higher wages than domestic companies and the working conditions they offer tend to be better than the general working conditions in the host country. Additionally, they tend to provide their employees with more training and knowledge as well as better retirement conditions than the domestic companies. ”.

WESTERN BUSINESS ISN’T EQUIPPED FOR COMMUNITY CAPITALISM Western competitive strategy (private capitalism) generally won’t work well in the community capitalism environment of developing nations. Private capitalism depends on mass marketing for high profit efficiency, while developing nations require pinpoint local marketing to fit the diverse needs of numerous sociological groups. Western business is impersonal, while community capitalism business must be highly personalized at the grass roots level. Most Western products are designed to cater to lifestyle and status differences, while developing nation products must normally be highly functional and practical.

Western marketing managers are illequipped for business in the community capitalism environments found in developing nations. They are like West Point military cadets in post. Civil War America who weren’t prepared for fighting the indigenous Indian tribes of the Southwest. Western business schools don’t prepare students for doing business in the bonanza markets of emerging nations.

WHEN COMMUNITY CAPITALISM WORKS BEST Community capitalism works best: (1) For privately owned, smaller companies, with a limited number of stockholders; (2) When the company is not in a heavily competitive industry, which greatly increases the importance of cutthroat short-term profitability; (3) In developing nations where job security is essential (4) When a personal (rather than institutional) bond of service and ethical accountability exists between company and customer

COMMUNITY CAPITALISM AT WORK 1. High job security of employees because of the scarcity of jobs in developing nations 2. Fewer workers replaced by technology 3. Partial or total government ownership of corporations (to provide financial stability) 4. Limited foreign ownership of domestic company stock 5. Small family companies play a lager role in the nation’s economy than large corporations

EXAMPLES OF HOW NEOLIB CAPITALISM DOESN’T FIT WELL INTO COMMUNITY CULTURES 1. Eight-to-five workday: People in CCs have family necessities that often require them to be at home some during the day. Most CCs don’t have enough institutions to assume these essential family functions.

2. Geographic job hopping: The extended family substitutes for most institutions in CCs, so family members are tied to their local communities. Geographic job transfers or new jobs compromise the capacity of families to care for children & the elderly on their own; to share home assets (rent, tools, phones, etc. )

3. Career women: Child-rearing, especially in large families, must normally be handled by mothers, grandmothers, & sisters. Day care centers, nannies, & all day public schools systems are rare & unaffordable. Also, in most CCs, women derive most of their self -esteem from nurturing rather than pro. Work.

4. Living your personal life around corporate demands: Institutional jobs, & especially careers, require long hours of uninterrupted work & significant time away from home & family (as well as 4+ years of full-time college, commuting to work, dual career marriages, & sometimes 24/7 projects).

5. Govt. budget deficits to institutionalize community functions: Indiv. culs require high taxes & socialized community services to pay for duties performed at low or no cost that would otherwise be the responsibility of families. The govts. of most CCs lack the financing to pay for institutionalizing basic social functions.

THE 21 ST CENTURY ‘S 2 BIGGEST CULTURAL CHALLENGES 1. How ready & willing are community cultures to give up their indigenous cultural way of life in order to be better served by individualistic capitalism? 2. How ready & willing are individualistic cultures to build community into their form of capitalism?

THE BENEFITS OF GLOBAL BUSINESS

GENERAL BENEFITS OF CAPITALISM 1. Economic growth 2. Jobs, careers & periods of full employment 3. Tax revenue for local communities 4. Technology development 5. Investor income 6. Marketing systems that deliver a high standard of living

7. Companies can get lower interest rates on the international market than the domestic market (but then are subject to the demands of foreign creditors). 8. Trade enables consumers to buy cheaper products (but often creating a downward wage spiral in developing 9. Open trade opens the door for technology sharing (but this may drive weaker domestic companies out of business). 10. Free trade opens borders (but also increases the risk of unemployment).

THE BIGGEST BENEFITS OF GLOBAL CAPITALISM 1. Reducing poverty in developing nations: – Between 1978 -1998, poverty was reduced in China from 28% to 9%. – Poverty in India fell from 78% to 26% – Poverty in Africa did not improve during this 20 -year period because of lack on industrialization & institutional advances in democracy

2. The U. N. ’s International Labor Org. estimates that 100 -200 M children under 15 work in the global workforce, 95% in poor nations. At least half of these children don’t go to school. 3. Globalization is perhaps the main benign factor in reducing child labor, because the long-run presence of foreign companies raises the wages of parents, enabling children to stop working and start school.

“On average, developing countries protect their production much more than developed countries, even though their protection is much less widespread. This protection means less South-South trade, which is of vital importance for them to achieve more economic growth. Those who oppose globalization should be reminded that what is necessary for increasing growth and reducing poverty and inequality is a drastic reduction of trade barriers, that is, more and better globalization, not less. ”

4. Research has shown that multinational companies normally pay at least 10% higher wages in developing nations, and often times 40 -100% higher than existing wages. 5. The rights of women have also improved over the long-run in global business, because foreign firms who provide equal employment environments for women have such a large competitive advantage over local firms, that the local firms must improve treatment of women in order to stay in business.

HOURLY MANUFACTURING PAY COMPARISONS • • • USA: $21. 33 EU: $20. 18 Japan: $18. 83 S Korea: $9. 16 Singapore: $7. 27 Taiwan: $5. 41 Brazil: $2. 57 Mexico: $2. 35 China: $0. 69

MANAGED GROWTH (by Global Institutions) IS BENIGN GROWTH 1. Global growth is healthiest when it is gradually introduced over several years (as opposed to instant “shock therapy”). 2. The better global growth is managed, the more its effects are benign rather than malign. 3. Multinational companies must avoid the quest for fast profits in developing nations to provide a healthy long-term operating environment.

% OF POPULATION WHO AGREE THAT FREEMARKET CAPITALISM IS THE BEST ECONOMIC SYSTEM FOR THE FUTURE: 1. 2. 3. 4. 5. 6. 7. 8. China: 74% USA: 73% India: 72% Britain: 70% Germany: 68% Italy: 60% Russia: 40% France: 36%

MERCANTILISM & PROTECTIONISM 1. Mercantilism was an economic system practiced by European nations from 15001750 in which nations strived to gain economically at the expense of their neighbors via: exporting more than importing; engaging in protectionist activities (primarily tariffs) against foreign imports; colonial exploitation of foreign colonies; hoarding precious metals (“bullion”) as a major source of national wealth. 2. 18 th century economist Adam Smith developed early free trade theories that largely discredited the mercantilist “win-lose” system of trade.

THE TW 0 EDGED SWORD OF GLOBAL BUSINESS

“Corporations are more central players in 21 st century global affairs than nations. We call them multinational, but they are more accurately understood as transnational, post-national, or anti-national. Their customers are not citizens of a particular nation; they belong to the universal tribe of consumers, defined by materialistic want and needs spurred by advertising. ”

GLOBALIZATION IS A TWO-EDGED SWORD 1. Benign (constructive) globalization: “Win-win” mutually advantageous trade between nations; “raising the lake level for all the boats” 2. Malign (destructive) globalization: “Beggar thy neighbor” trade; damage to cultures & political systems; exploitation of labor, etc.

THE TWO MAIN FORCES OF ECONOMIC GLOBALIZATION 1. Governmental “liberalization”: regional economic cooperation; free trade agreements; consulting with other nations on economic policy 2. Global penetration of revolutionary technology

DOES EVERYBODY WIN? Wal-Mart expanding into Mexico: – W-M stockholders win? (yes) – W-M employees win? (yes, since no American W-M employees lost their jobs & some Mexican workers gained new jobs) – Both nations involved win? (yes, both get more taxes from W-M) – Competitors in both nations win? (not the Mexican retailers put of business by W-M)

EXAMPLES OF INTENTIONAL vs. UNINTENTIONAL OUTCOMES 1. An American sporting goods manufacturer intentionally relocates to China to reap more profit by saving on labor costs (thus unintentionally permitting some Chinese workers to move out of “hand to mouth” agricultural jobs & unintentionally hurting its former American employees, local community, & labor union) 2. Thus, the American company unintentionally hurt its own nation & unintentionally helped a “foreign” nation—all because of the (powerful) profit motive

IDEALISM vs. PRAGMATISM 1. There are only 2 human motives: selfinterest vs. idealism (commitment to something bigger than ourselves: truth, beauty, justice, sacrifice, etc. ) 2. Acting out of self-interest leads to pragmatism: “Do it if it gets you what you want” (even if it means cutting corners or compromise). 3. Global business is the most pragmatic profession of all, because so many obstacles have to be overcome (ethically or unethically) in the pursuit of (selfseeking) profit.

“Economies work best when they are open to the world. Open economies work best when their governments address the social problems unintentionally created by freetrading global capitalism. The challenge of global capitalism in the 21 st century is to combine international integration of politically responsive, socially responsible government. ”

“The 3 scariest words in today’s global economy are: What’s China’s price? ” Over the past decade, China has set off a wage “race to the bottom” in the global economy by paying workers less than anywhere else in the world, including the poorest of other developing nations. Economic statistics indicate that wages have indeed fallen, even in highly developed economies such as the USA, where wages have stagnated or declined since 1973. In Europe, wages didn’t fall due to socialistic government protection, but significantly fewer jobs were created.

THE LIMITATIONS OF NEO-LIBERAL, INDIVIDUALISM CAPITALISM

INDIVIDUALISM CAPITALISM CAN’T SERVE NATIONS OR REGIONS WELL WHEN: 1. There are few middle class consumers 2. Women have a traditional family nurturing role 3. The majority of businesses are small & family-owned 4. Few capitalist institutions exist: democratic government, private banks, stock markets, business professionals, etc. ) 5. The nation’s exports are mostly low on the value-added curve

6. Most people place family concerns ahead of careers 7. Power is centralized in the hands of government or elites rather than disbursed throughout society 8. The nation/region has significant international debt 9. The nation was under colonial rule or influence in the past 50 years 10. The nation/region is not very industrialized

MANAGING CAPITALISM

SYSTEMS THAT SEEK TO MANAGE CAPITALISM 1. 2. 3. 4. Governments Regulatory agencies Tariffs & subsidies Interest rates Taxes

5. Protectionism (tariffs & subsidies) 6. Govt. regulation & deregulation 7. IMF structural adjustments 8. Consumer legislation & credit 9. Currency policy

Financial Institutions • Private & public banks • Stocks markets • Currency exchanges • Brokerage companies

Global Governments Organizations World Trade Organization : Global trading policies & practices; Advocacy of “PPMM” capitalism: Private, Profit Maximization, Market-controlled International Monetary Fund: Using loans to establish PPMM capitalism in the developing world

CORPORATIONS THAT SEEK TO DOMINATE & CONTROL CAPITALISM Transnational (non-nationalistic) corporations (“Fortune” 1000) 1. Controlling global wages 2. Off-shoring & using labor as a commodity 3. Influencing national & regional politics

4. NGOs 5. Environmental 6. Human rights 7. Labor unions

Some nations can adapt to the capitalism better than others. What should be done about nations that don’t adapt well?

GLOBAL CAPITALISM CAN BE EXPLOITATIVE WHERE: 1. TNCs produce more jobs than the nation’s eco 2. Workers have no alternative to sweatshops 3. Govt. borrows sig $$ from IMF/WB 4. Nation’s overall economy is low on the VAC

5. Jobs > clean environment 6. Nation does not have the lowest wages in the region/world 7. Labor is treated as a commodity controlled by global S&D 8. Women must fend for themselves economically

9. Nation has a rich neighbor 10. Capital is limited 11. Nation has weak, corrupt institutions 12. Nation has a community culture

THE POWER BASES OF NEOLIBERAL CAPITALISM

Business success in neolib individualism cultures requires the accumulation of social & economic power, which comes in 4 categories:

#1. National power: 1. Globally-dispersed military bases (enabling military or economic colonialism) 2. Large, industry-dominant global corporations 3. Provision of subsidies & tariff protection to domestic industries & corporations 4. Trade surpluses 5. Low international debt

6. Low domestic debt (both government & consumer) 7. Prosperous middle class markets 8. Strong, innovative entrepreneurial sector 9. Adequate business regulation to protect against monopolies, predatory corporate behavior, & lack of executive ethical accountability 10. A healthy distribution of national income

#2. Industry power: 1. Oligopolistic industry structure 2. Value-added curve dominance 3. Nationalistic backing in the pursuit of global markets 4. Product/service that creates its own demand (lifestylecatering, health-enhancing, etc. )

#3. Corporate power: 1. Political lobbying & campaign donations 2. Intellectual property assets + legal protection 3. Strong invention & innovation corporate competencies 4. Off-shoring: labor & pollution 5. Virtual operations (using the assets of others)

6. Strong global supply chains (using a network of cost-efficient global suppliers) 7. Bribes in nations with corrupt governments & weak institutions 8. Receiving subsidies from the corporation’s own government 9. Tariff protection at home 10. Dumping exports below cost in foreign markets to build market share (illegally) 11. Using government military contracting as a profitable “gravy train”

#4. Employee (career) power: 1. Degrees, licensing, certifications 2. Resume breadth & depth 3. Networking with successful capitalist 4. Geographical mobility 5. Dual-career marriages 6. Access to child care

Career capitalism can be depicted as a series of power rings arranged like a target from the inner-most “bulls eye” (those personally benefited most by capitalism) to the tangential outer rings (those benefiting least).

(1) “Systems managers” (primarily politicians, federal bankers, & International Monetary Fund & World Trade Organization executives) are exert the greatest influence over shaping how global capitalist functions. Those in this same inner bulls-eye” who typically stand to profit most from capitalism are the (2) “system profiteers” (executives of large corporations, major stockholders, highly inventive entrepreneurs etc. )

Here is a rough ordering of the remaining major rings of capitalist beneficiaries in descending order of potential benefits: 3. System professionals: Licensed professionals (lawyers, accountants, brokers, consultants, etc. ) 4. High value-adding technicians: Engineers, MBA managers, financial analysts, creative marketers, etc. 5. White-collar, full-time corporate staff: department heads, MIS developers, etc. )

6. Eight-to-five wage earners 7. Part-time & temp wage earners 8. Low-compensation off-shored workers in developing nations 9. Unemployed experienced workers living on unemployment insurance while job-hunting Those not directly benefitted by capitalism are the permanently unemployable (homeless, incarcerated, handicapped) & those in non-capitalistic parts of the world.

ECONOMIC NATIONALISM

In the Kentucky Derby, would it be fair for some horses to run a mile and others a mile and a quarter? (This is how protectionism works)

NATIONALISM & PROTECTIONISM • Tariffs (taxes on imports) • Subsidies (domestic companies receive financial aid from their government)

Protectionism is seen by developed nations as an outmoded form of nationalism that disrupts global trading patterns. Developing nations see it as a defense against foreign exploitation.

You better make enough money on your copyrighted or patented product to overcome piracy.

Some nations make it difficult foreign companies to take their profits back home: • Heavy taxation of profits • Laws that require balancing of domestic & foreign currencies • Requirements to buy from local suppliers only

What is the bottom line of business? Are you sure?

1. The narrow ideology of Western (private) capitalism: short-term profit maximization benefiting stockholders 2. The broader (community) capitalist ideology of developing nations: long-term profit adequate to benefit not only stockholders, but also employees, local communities, & the nation.

3. Only the most affluent of nations can pursue single stakeholder (those who own stock in the company) capitalism, because only rich nations have the support infrastructure (unemployment insurance, a robust job market, education opportunities, etc. ) to take care of the employees and local communities whose interests are sometimes sacrificed for the interests of stockholders. 4. Developing nations lack this safety net infrastructure, so corporations are expected to sacrifice some profit in order to look out after the interests of those sometimes hurt by capitalist competition.

Godzilla Transnational Corporations

The largest trans-national corporations dominate global competition, just as Wal-Mart dominated the ma & pa retailers of yesteryear. Godzilla corporations are often powerful enough to bend, shape, & sometimes control global industries & politics.

GODZILLA, Inc. • • • Wal-Mart Disney Microsoft Halliburton UT-Austin Self-accredited professionals

WHAT PRODUCES GIANT CORPORATIONS 1. Oligopolies (industries dominated by Godzillas) 2. Global operations platform 3. Nationalistic alliances (govt. deficit financing of business) 4. Deregulation & asset concentration 6. Legal bribes in politics

POTENTIAL ECONOMIC BENEFITS OF GODZILLA 1. Global profits for stockholders 2. Price efficiency for some products 3. Strong exporting lanes

POTENTIAL DRAWBACKS OF GODZILLAS 1. Short-term unemployment 2. Social Darwinism in community cultures 3. Can be used for nationalistic & political meddling

4. “Sweat-shop” manufacturing 5. Ethical cornercutting 6. Domination of suppliers & competitors

CORPORATE & CONSUMERIST EXTERNALITIES

In their profit-making activities, corporations sometimes unintentionally damage or create problems for others (especially local communities & employees) which the company does not take responsibility for. Ideally externalities should be compensated for either by corporate stockholders or by the consumers who purchase the product. Too often corporations ignore the “messes” they create, so either nothing is done about them or the affected innocent parties must clean them up themselves.

THE 3 LARGEST CAPITALISTIC EXTERNALITIES 1. Employee layoffs 2. Non-sustainable wages for full-time employees 3. Pollution damage or clean-up

CONSUMERISM AS AN EXTERNALITY Consumers are normally unaware of the externalities generated by the products & services they consume, especially foreign-made merchandise. They assume the price they pay is a “fair” one to those involved in bringing the product to the marketplace. When the price is too low to compensate those affected by externalities, consumerism itself becomes an externality: consumers contribute to the unintentional social problems of capitalism without even knowing it.

3 CONSUMERIST QUESTIONS Is the price of the product high enough to pay for: 1. A living wage for workers & their families? 2. Clean-up of corporate pollution? 3. Unfair trade practices of certain corporations, such as receipt of government subsidies; “dumping” the product in the marketplace below cost; & use of child labor?

TURBOCAPITALISM

In his book, Turbo-Capitalism, Edward Luttwak refers to the recent (post- 1980 s) American brand of capitalism that takes corporate power & profit to the extremes of “neo-liberalism” (minimization of outside governmental or regulatory influence on the “free market”). “Turbo-cap” maintains that everyone benefits from a strict “MAXI-MIN” “neo-liberal” capitalism ideology:

1. Maximum privatization (conversion of all public sector economic enterprises) to corporate ownership & control + minimum government involvement in business. 2. Max industry deregulation + max corporate oversight of industry competitive practices 3. Max off-shoring of labor to minimize manufacturing costs

4. Min permanent employees, & fixed assets & max temp employees 5. Min government business subsidies & protectionism (mainly tariffs) 6. Max spread of neo-liberal capitalism as practiced by individualism cultures to all nations & global government organizations

Author Luttwak comments, “(Turbocapitalism) offers but a single set of rules for every country in the world, ignoring all differences of society, cultures, and temperament. The accelerated structural change (of) turbo-capitalism is the worldwide abandonment of public ownership, central planning, administrative direction and most forms of regulatory control. The once sheltered markets of puddles, ponds, lakes and seas (small nations & companies) are exposed to the tidal waves of change of global trade, and of yet more volatile global finance with its massive flows and backflows of capital. ”

These specific “externalities” (societal damage) of turbo-capitalism include: 1. De-capitalization of public sector institutions due to the hyper-flow of capital to the maximized private sector 2. Deeply-embedded social problems (singleparent families; crime triggered by unemployment & poverty; non-living wages) triggered by employment destabilization via off-shoring labor; reliance on temp & outsourced contract workers; global mergers & acquisitions; & recurrent business ethics scandals stemming from lack of regulatory constraints on profit-making activity.

“The same rapid pace of change that increases global prosperity, that allows poorer nations & regions to catch up. While offering opportunities to enterprising people everywhere, also brutally exceeds the adaptive limits of individuals, families, & communities. The greatest shortcoming of turbo-capitalism is, while it imposes its disruptions on all in perfect equality, its rewards are disproportionally given to the few. Controlled capitalism, in all its variants, functioned very differently, bring societies by lifting the poor and semi-poor into the middle class, while depressing incomes only at the very top. ”

“Allowing turbo-capitalism to advance unresisted disintegrates societies into a small elite of winners, a mass of losers of varying affluence or poverty, and rebellious law-breaking rebels. But to resist turbo-capitalism & its destructive efficiencies in a competitive world economy can result only in a progressive relative impoverishment for the nation as a whole. Under turbocapitalism, when all capital is allocated efficiently to whatever entities earn the highest returns, there is none to spare for institutions that do unprofitable things because of moral obligations. ”