I know not every one likes Bill Maher as much as I do. They are entitled to be wrong. I listened to a fascinating discussion on capitalism on his show with 2 very interesting guests–Scott Galloway and Larry Wilmore. I have been blogging about Galloway’s appearance on another show. He stole the show again.
Scott Galloway is a Professor at NYU and the author of Post Corona: From Crisis to Opportunity i is an internal critic of capitalism. By internal critic I I mean that he is a critic of capitalism from the inside as a believer in capitalism, but who hates what capitalism has become. Galloway is a Marketing Professor at NYU and an unabashed proponent of capitalism, but capitalism has become sclerotic, in his opinion.
He used some very interesting examples. First, Jeff Bezos lost 38 billion dollars in his divorce. And he made it all back in 1 month! That simple statistic tells you a lot. Bill Maher asked a wonderful question: what does this tell you about America? Galloway said something shocking to that. He said, “Its worse than that. We’ve had 1person add the GDP of Hungary to his own personal net worth during the 1 year of the pandemic and that is Elon Musk.”
Capitalism has gone crazy. It is nuts. And then Musk moved to Texas so he doesn’t have to pay taxes. During the pandemic, “Billionaires have gone from 1.9 trillion dollars to $4 trillion. The dirty secret of this pandemic is that the top 10% not just the top 1% are living their best lives.”
Some businesses have gone out of businesses. They have suffered catastrophically during the pandemic. Others have flourished. Why is that?
Bill Maher describes this phenomenon this way: “If you’re in the sit on your ass and look at a screen business–Amazon, Apple, Google, and Facebook “If you’re in the sit on your ass and look at a screen business–Amazon, Apple, Google, and Facebook–they are now worth 21% of the whole US economy!”
Scott Galloway put it this way:
“We used to talk about the S& P 500. Now it’s the S & P 7. 7 companies now have 51% of the market capital in the US. Amazon since March 2020 has added more market capitalization than all of European retail. We effectively have 4 companies that are so dominant that we’ve been overrun. There are more full-time lobbyists in Washington working for Amazon than there are Senators. There are more people working for Facebook manicuring Mark and Cheryl’s image than there are journalists working for the Washington Post. We are so beyond any sense of balance in our economy that the ecosystem is out of control. We absolutely need to break these companies up.”
People in the west have forgotten how corrosive market dominance can be to democracy and freedom. As these corporations grow, democracy and freedom shrivel in lock step. Concentration of wealth in modern capitalistic society, particularly when there is a conservative dominated Supreme Court in the US is “a freedom shredder” according to Galloway.
The amazing thing is that it seems inevitable. Too many people–the vast majority–believe there is nothing that can be done about it. There is a lot that can be done about it. But the people must assert their power to do it. As Larry Wilmore, the Executive Producer of Amend: The Fight For America, said, “No matter what happens in the economy it all flows one way.” That is what happens when power is concentrated.
As Galloway asked,
“Do we want that one company to say when we type in “overthrow government” should we be sent to ‘how to build a dirty bomb’ or to “voter registration.” Should one company control those decisions 93% of the time? Should one person control the algorithms that decide the content of what of the southern hemisphere plus India see? Should one company effectively control 97% of all increase in value of all retail?”
Is that what freedom is all about? And we should never think they are satisfied with what they have. That is because they are never satisfied with what they’ve got. They want it all. They want totalitarian control of the entire economy. Is that an exaggeration? Who is being the Pollyanna here?
Amazon started out as a company that sold books. A commodity. Easy. Right Wrong? Some like Galloway think they will try to control health care next. As Bill Maher said, “Of course why wouldn’t they want that? They own everything else. Where is all the money going? Sick people. Because that’s what America does best–make sick people.”
As Galloway pointed out,
“The largest business in the world is US health care. It’s 17% of GDP. Its prices keep going up. MPS is going down. That spells ‘here comes Amazon’. But not only is it bad or morally corrupt for these companies to have so much power, it’s dangerous. The equivalent to Nasdaq in Israel is down, not up, they are vaccinating at 7 times the rate. When the most powerful and wealthiest people in the world are living their best lives, if we don’t show this virus the full-throated capitalist response we are capable of [we’re done]. If Amazon stock had declined 70% instead of risen 70% in the last 10 months, when a van with a Smile shows up on my driveway tomorrow someone in a lab coat would have jumped out and vaccinated us. ‘We are living our best lives.’ This virus has not seen what the US is capable of because ‘Stop. Stop. It hurts so good, if you’re the shareholder class.
This virus has been allowed to flourish because the S&P 7 likes it that way! It they were losing money during the pandemic they would have stopped it by using the full power of market capitalism. They chose not to do so.”
The shareholder class and the big 7 have enjoyed this pandemic ride because it is the best thing that could have happened as far as they are concerned. Why stop what puts money in my pocket? If I have the power to stop it why would I do it while my bank account keeps growing exponentially? That is why concentration of wealth and power is so dangerous.
Of course, as we all know, the S & P are delivering things we want. During a pandemic they deliver food to our doorstep so I can avoid those dangerous grocery stores. What is wrong with that? Capitalism is very efficient at fulfilling our needs. Of course, it can do that because it has manufactured many of those needs in the first place! Did you think you decided you needed Twinkies delivered to your door in one day? They have positioned themselves to bring to you what you want.
But in the process, as Wilmore said, “It’s amazing how they have Pac-manned every company that is out there.”