Progressive Ponderings: “Economics 101”

02/26/2005

Progressive Ponderings: “Economics 101”
Joe Mayer

A few years ago as a college sophomore I enrolled in a course entitled Economics 101. At the time I hardly knew what economics consisted of. In the time span between then and the present I’ve observed many of the principles defined in that course become twisted and distorted beyond recognition.

Early in my study the “factors of production” were introduced: land, labor, capital and management. Land consisted of everything Mother Earth contained, often called natural resources. Labor was the effort humans exerted on those resources. Capital consisted of the accumulation of finished resources frequently used to enhance human efforts.

Management was the bringing of the first three together in a hopefully efficient manner.

Only later in my study would the effect of government on these factors be studied. Both biblically and by evolutionary theory these four factors appeared in history in the order presented. First, the creation of resources. Second, human creation or evolvement with a need to use resources for survival. Third, as resources accumulated, capital, private and public, became a bone of contention. Fourth, as production industrialized, the need for overseers became necessary.

I emphasize this progression to underline the fact that without resources and labor, capital would be nonexistent and management unnecessary. Also, as economies progressed, hierarchy began to raise its ugly head. Kingships arose and claimed to own both the earth’s resources and the humans living within a geographical area. To solidify power and dominion, mythology began to attribute god-like qualities to ruler/owners. Once a king assumed in his psych his claimed divinity, his horizons expanded and war raised its ugly head. This simplified history is important because it’s a precursor to what is happening today.

Instead of kings dominating the economic landscape we have huge corporations which have bribed and purchased government. The effect on natural resources and human labor is the same as under kings: rewards, profits, capital all flow to the top of the hierarchy. In the United States we even have mythological divine attributes being brandished again. Also, war.

One of modern history’s worst legal decisions occurred when the U.S. courts declared that the “only” purpose of a corporation was to “make a profit.” With this decision new gods came to dominate the economic landscape profit, growth, privatization, monetary power, increased hierarchy. Mother Earth and humankind became just a means to the end—profit. By bribes and then control, government also became a means to this end.

Profit and growth fueled a new imperialism. This time it hid under the mantle of “globalism.” Trade organizations- the World Bank, WTO, IMF, NAFTA, etc.- became more dominant in world economic affairs than governments. Government became a means to insure corporate domination of resources and human labor. Government could enforce by war. Capital and management claimed to be the main producers of profit and therefore entitled to all its benefits. CEO pay ballooned from twenty-five times the average worker wage to 40 to 100 to 400 to now about 500 times more than that of mere mortal labor.

With profit now the only god, corporate plants could pick up and move regardless of hardship on communities or workers. In fact, CEOs who close plants are usually highly rewarded. While flying American flags above corporate offices and buying pliant politicians these same patriots find no incongruity in moving jobs to other countries.

This historical progression of the takeover of production’s benefits by capital and management has had a devastating effect on natural resources and labor. If this trend is left in place, the world’s resources will be held in fewer and fewer hands. Rebellion and terrorism will become the only weapons of devastated people.

Progressive ideals are the only solution. Labor is the basic of all production and must receive its due reward. In today’s world that can only be achieved by obtaining power. And power can only be claimed by demanding it. Power is never given away. The country and the world is waiting for American progressives to lead the way.