In
the U.S. this situation has become blatantly clear as the oligopolistic healthcare
industry does everything possible to avoid a public option that would only
encourage competition in an otherwise tight-knit, ol' boy industry. America's political
leaders and pundits strongly promote the idea of free-market enterprise,
although their speeches provide the rest of society with just enough hope only
to ponder the American Dream and how the regular guy might achieve a
comfortable spot in the sunshine. "Change you can believe in."
Meanwhile
a handful of the world's largest insurance companies spends billions of dollars
to block the public healthcare bill because it would break the oligopolistic
choke-hold on faceless millions of Americans. Corporations like Cigna, Aetna,
WellPoint, and AHIP dominate the industry and consequently increase prices
faster than in any other industry or economic trend. They pay the hooligans
like Joe Lieberman--via his wife--or the automaton Harvard medical professors,
like Joseph P. Newhouse, one of Cigna's board of directors, and other paid puppets
to defend the policies of market domination, stagnation, and out-right highway
robbery.
Contrary
to their ideals of competitive, efficient capitalism, the salesmen of
neoliberalism only talk about the theories while they defend their privileged
position, and in doing so, they defeat the very principles they espouse about an
open, innovative, free market where buyers have choices and suppliers are
forced to innovate and cut costs. Politicians and pundits for the corporations
lie to the public because the insurance companies pay them to spread the gospel
that government is evil and inefficient and only big corporations can manage
our society and our economy.
The corporate-bought talking heads take the money and live in comfortable houses near the country club and send their children off to expensive schools where they learn corporate etiquette to insure that they land upwardly mobile jobs at powerful corporations. The picture we see in this represents how our society has devolved into a place where materialism overwhelms us while it destroys our environment, our democratic system, and our community.
A vast majority of the middle class dreams of a career in a large corporation because, in America, it's where the greatest social benefits are offered, healthcare, retirement packages, and vacations. These are all the benefits that the government provides its citizens in prosperous European democracies. As this trend continues, American becomes less and less a democracy and more a corporatist welfare state.
The broad chasm between what the paid pundits say and what they do reminds us of the Communist propaganda about how everyone must sacrifice today for a greater, more equitable tomorrow. A free democracy is mere myth when corporations overrule the democratic processes.
The broad chasm between what the paid pundits say and what they do reminds us of the Communist propaganda about how everyone must sacrifice today for a greater, more equitable tomorrow. A free democracy is mere myth when corporations overrule the democratic processes.
"I hope we shall crush in its birth the aristocracy of our moneyed
corporations, which dare already to challenge our government to a
trial of strength and bid defiance to the laws of our country." Thomas Jefferson, 1812
The U.S. Senate and Congress meekly kneel to the will of the corporations at the cost of the will of the people.
Democratic leaders dropped a government insurance option and the idea of expanding Medicare to younger Americans. Reid also omitted language that would have eliminated the federal antitrust exemption for health insurers -- another nonstarter for Nelson.--The Washington Post, December 20, 2009
In 2010, U.S. Supreme Court Justices will explicitly consider Citizens United v. Federal Election Commission to determine whether to overturn a 1990 ruling that had upheld the ban on direct corporate contributions. If corporations gain this last bit of power over our democracy, the will of the people is crushed completely.
Likewise, in Mexico the government almost never steps in to regulate the large land owners, much less the large monopolistic corporations.
Nothing New about Neoliberal Economic Policies
Variations
of what we currently call "neoliberalism" have always existed throughout
history. Indeed, history is mostly a study of how the privileged few impose their
authority by various shams and tricks to overrule the gullible populace. In the
U.S. when an elected official, like Sarah Palin, states in a public speech that
Obama's healthcare bill includes "death panels," a certain part of the gullible
public believes the drivel. It's the depraved and perverted segments of fanatically
money-driven Americans that allow dishonest scam artists to continue their
criminal careers like Dick Cheney--the former vice president who granted no-bid
billion dollar contracts to his own corporation, Haliburton.
Mexico's
history contains its share of such flimflammery in rude and violent acts. Since
Cortes dropped anchor in a Yucatan bay, a class of Spanish nobles has always
managed to dominate the masses of the poor and uneducated. In many ways, the Spanish
monarchy and aristocracy, in cooperation with the Catholic Church, have imposed
policies similar to what we call neoliberalism today. And even after Mexico
established its independence from the Spanish monarchy and formed a constitutional
democracy, it has still maintained a government that strongly promotes the
interests of the caudillos, the wealthy few who reign over regions or
industries in Mexico.
Even more so in Mexico than in the U.S., a small number of huge corporations dominate the economy and the democratic processes with a heavy political and financial hand.
Monopoly and Neoliberalism
Pemex holds a monopoly on the petroleum in Mexico. As the Wall Street Journal reports on April 7, 2008, any talk of stimulating competition in the oil industry is unheard of in Mexico.
Such heresies cannot even be whispered in Mexico though not because the Mexican people can't be convinced that there is a better way to run things. The reason is because the guardians of the status quo politicians, suppliers and labor would suffer if competition hit the market. Private Mexican contractors who "supply" Pemex are used to business transactions tied to political connections. If there were multiple buyers in competition with one another, those political profit margins would evaporate.
Even
though Mexico's President Calderon delivers noble speeches about breaking up
monopolistic industries that dominate its economy, he continues to apply
neoliberal policies by privatizing many industries--from petroleum to tortillas
and telephones. by Definition monopolies own markets and that means they can
charge high prices without pressure to improve or innovate. They turn economies
into murky swamps that move slowly to a standstill.
At any moment in their daily routine, Mexicans cannot avoid the monopolies that plague their lives. When they fill their gas tanks, they pay homage to Pemex, the only supplier of petroleum. When the average Mexican, Jose, makes a phone call to reserve a table at his favorite restaurant, he pays a high price to Telmex, which owns 94% of landlines, a de facto monopoly. And when Jose takes his family to the restaurant and orders tortillas, he pays dearly to the main supplier of corn and flour, Roberto Gonzà ¡lez Barrera, owner of the Maseca flour monopoly and Banorte bank, who controls more than 70% of the market. A desire for tacos leads to extortion, because the price of corn has risen more than 700% since NAFTA's start in 1994. When Jose's family watches the news about inflation on TV, their only choice for cable channels is owned by the Grupo Televisa, which controls an overwhelming part of the industry.
Mexico's
captains of industry, the business elites, enjoy a tight grip on the economy while
the country sinks deeper into its original feudal state when the Spanish
monarchy ruled. A few dominating corporations own the economy. By accumulating power
with political contributions and other bribes, these corporations also control
most of the government. The distribution of wealth has remained in the hands of
the owners of the feudal domains--which in modern terms are the oligarchic
corporations. The concentration of wealth in the barons of fiefdoms keeps
competition away. Since they own their own industries, they can continue to extort
the general population, reduced to peasants in an economy that increasingly
resembles the landscape of the Middle Ages.
Carlos
Slim Helu, the owner of Mexico's telecommunications industry, enjoys a
government-granted guaranteed monopoly, making him one of the richest men in
the world with over $60 billion.
Mexico's super-rich class includes at least twenty-four billionaires and over 85,000 millionaires, not counting the billionaires and millionaires who prosper from the drugs and sex trafficking. Much of this skewed distribution of wealth began with Mexico's President Salinas's privatization and NAFTA policies in the early 1990s. At the same time that a handful of billionaires emerged in Mexico, more and more of the common people fell below subsistence level. More than fifty million Mexicans live on less than $4 per day and another fifteen million live on $1 or less per day (source: CONAPO survey of 2005). In like manner, many American citizens still prefer to live in a Disneyland vision of the U.S. while the middle class sinks deeper and closer to the same situation as in Mexico.
Feudalism and Capitalism