Book SummaryConsequences of Capitalism, by Noam Chomsky and Marv Waterstone

1-Page Summary1-Page Book Summary of Consequences of Capitalism

The development and intrinsic conflicts within the system of capitalism.

The section of the book delves into the inherent contradictions of capitalism and its historical development, emphasizing its reliance on exploitation and its fundamental requirement to continuously seek expansion and secure continual economic advancement. The meticulous dissection of the system's intrinsic shortcomings is carried out by the authors Noam Chomsky and Marv Waterstone.

Capitalism inherently necessitates exploitation and the initial gathering of wealth.

The authors argue that the initial accumulation of wealth and ongoing exploitation are essential for upholding a system that benefits a select few while continuing to propagate disparities among the wider population.

Workers found themselves devoid of property and alienated from the necessary means to produce goods, leading to a situation where offering their labor was the only commodity at their disposal.

The publication delves deeply into the misconceptions associated with the idea of an individual who achieves success solely through personal effort and the idealized vision of opportunity and prosperity in America, highlighting the historical developments that deprived laborers of essential means and instruments for production. The harsh conversion of shared resources into private possessions, as described by Waterstone, forced individuals into circumstances where their labor became their sole marketable asset.

Citing Marx's Capital, Waterstone emphasizes the ongoing nature of this process, which he terms "accumulation through dispossession." Chomsky draws attention to modern parallels of early capital accumulation, including the transfer of public services to private ownership, the enforcement of exclusive legal rights over creations of the mind, and the creation of market dominance via patents and copyrights. The contrived scarcity leads to the creation of a large labor pool compelled to trade their labor for essential life necessities, thus providing those who control capital with a significant advantage in job-related negotiations.

Context

• This concept is rooted in Karl Marx's critique of capitalism, where he argues that the proletariat, or working class, is alienated from the means of production, leading to exploitation.
• The belief in success through personal effort can lead to a "just-world" fallacy, where people assume that those who are unsuccessful simply did not work hard enough, ignoring external factors such as luck, timing, and systemic obstacles.
• As people moved to cities for work, they lost access to land and resources that previously allowed for self-sufficient production, becoming reliant on wage labor.
• During the colonial era, European powers often seized land and resources from indigenous populations, converting them into private assets for the colonizers, which disrupted traditional communal living and economic systems.
• In contemporary times, this dynamic persists as many workers lack ownership of significant assets, making employment their primary means of income.
• In contemporary times, accumulation by dispossession can be seen in the privatization of public services, such as water and healthcare, and the financialization of housing markets, which can lead to evictions and homelessness.
• Notable examples include the privatization of the UK’s railways and water services in the 1980s and 1990s, and the increasing role of private companies in the US prison system.
• Trademarks protect symbols, names, and slogans used to identify goods or services. They help consumers distinguish between different brands and maintain brand reputation.
• Sometimes, companies acquire patents not to develop the technology but to prevent others from doing so, effectively suppressing potential competition and maintaining their market position.
• When scarcity is manufactured, it can lead to increased competition among workers, which benefits employers by allowing them to offer lower wages and fewer benefits, knowing that workers have limited alternatives.
• Capital controllers typically have better access to market information and resources, enabling them to make strategic decisions that can affect employment terms and conditions, often to the detriment of workers.

The viewpoint of Friedman regarding the liberty in economic matters does not consider the described situation as a result of exercising free choice.

Chomsky and Waterstone directly challenge Milton Friedman's assertion that economic freedom and voluntary exchange underpin capitalism. They argue that the initial amassing of riches, coupled with the relentless depletion of resources, leads to the establishment of a deeply unequal competitive landscape. Waterstone examines the concept of an unregulated labor market, emphasizing the disparity in power since capitalists hold sway over resources for production and capital, whereas labor is the sole commodity workers can provide.

Workers, Waterstone argues, are not entering the labor market on equal footing with capitalists. Employers benefit from a wide selection of potential employees, while individual workers are compelled to seek out companies willing to pay them for their distinct abilities. The imbalance of power undermines the notion of free choice, revealing the fundamentally obligatory nature inherent in capitalism. People are compelled to trade their ability to work in order to maintain their livelihood, casting doubt on the authenticity of what is termed "voluntary exchange."

Context

• The assumption that all market transactions are voluntary overlooks the economic pressures and constraints that can coerce individuals into certain economic activities.
• Wealth accumulation and resource depletion have global implications, often resulting in a divide between wealthy and developing nations, impacting international trade and relations.
• In many developing...

Consequences of Capitalism Summary The Establishment and Continuation of Conventional Thinking within the Context of a Capitalist System.

This section explores the role that widely accepted beliefs and ideologies play in maintaining the structure of capitalism. The authors analyze the techniques used to shape agreement, emphasizing the use of force for control, and the functions of education and media in maintaining current hierarchies, thereby obstructing advancements in societal transformation.

Achieving agreement.

The authors delve into the tactics used by the ruling elite to shape public opinion and maintain capitalist hegemony by deploying propaganda, controlling media narratives, and orchestrating promotional efforts. The authors argue that shaping public consensus is essential to gain the population's compliance with a system that benefits a select few.

Through the use of various media outlets and marketing tactics, efforts are made to shape public perception and maintain the legitimacy of the current system.

Waterstone emphasizes the significant impact that marketing and propaganda techniques have in shaping public opinion. He cites Bernays, a pioneer who believed that shaping the collective attitudes and actions of the public is essential for the health of a democracy, and whose influence on...

Consequences of Capitalism Summary The impact of modern capitalism on social structures and environmental conditions.

This section delves into the profound societal and ecological impacts that stem from contemporary capitalist practices. Chomsky and Waterstone analyze the combined effects of market-driven policies and worldwide economic integration, highlighting their inevitable role in exacerbating social disparities, destabilizing communities, and precipitating environmental crises, emphasizing that such consequences are both unique and predictable.

The system has been shaped by the promotion of neoliberal policies, the expansion of global economic integration, and the ascendancy of a system dominated by financial capitalism.

The widespread adoption of neoliberal strategies, according to Chomsky and Waterstone, has precipitated numerous detrimental consequences for society, including increased inequality, instability in job security, and the rise of authoritarian governance. They perform a comprehensive analysis of the mechanisms that lead to these results, demonstrating their deep connection to the core tenets embedded within the capitalist system.

The rise of a heavily guarded and militarized state has been influenced by the growing populations deemed unnecessary for work or...

Consequences of Capitalism Summary Investigating a range of models and resistance to foundational systems rooted in capitalist ideologies.

The last part of the book explores the possibilities for resistance and change in society, emphasizing the significance of united efforts in challenging dominant beliefs, dismantling established norms, and imagining a future that is both fairer and more sustainable.

Societal movements provide a stage for challenging what is commonly embraced as self-evident fact.

Chomsky and Waterstone emphasize the significance of joint efforts in challenging the dominant narratives and perceived certainties that bolster capitalism's framework. They explore how these movements create an environment that is supportive of the development of different societal ideals, amplify awareness of entrenched injustices, and promote united actions aimed at significant change.

The strategic competition encompasses a prolonged struggle against the expansion of military might, environmental degradation, and the strategies associated with neoliberalism.

Waterstone and Chomsky highlight how various social movements have emerged in recent decades to resist the destructive forces of militarism, environmental degradation, and neoliberal policies. They examine various social movements, such as protests...