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Tag Archives: rationalization

Art by Anastasia Lambrou

Art by Anastasia Lambrou

Dear economists, dear policy makers, dear bankers, dear powers-that-be,

I have a message for you. It is aimed at you, but not really meant for you, rather for the rest of us who are struggling to make sense of this mess you have created.

We are not commodities.

We, the People, vote and elect individuals who are supposed to represent our interests and uphold our ideals for a fair and humane society. Just one glimpse at the news, especially the uncensored/non-sterilized news reports on the Internet, should be enough to convince anyone that we have strayed very, very far from this basic concept of Democracy.

Commodities do not vote. Commodities have no rights or voice. Commodities are bought, sold and utilised as required.

The very moment that our financial system started treating people as commodities, was the moment when democracy started to decline. And now that this very system has come to dominate politics and governance to an absolute degree, what do you suppose has happened to our precious democracy?

Commodification is nothing new. In fact, it is a fairly old concept introduced by Karl Marx. The problem is that many people will dismiss the concept without thinking, just because they might disagree with Marxist theories.

But you don’t need to be a Marxist or a communist, or even a left-wing sympathiser to understand the fundamental truth of this simple statement: people are not commodities.

No amount of reasoning, no financial theory, no argument can be used to change this. In a world which has formally renounced slavery, human labour cannot be thought of as a commodity.

Because when this happens, then the fundamental right to work becomes subject to the principles of the free market and unemployment is suddenly thought of as a financial indicator, instead of a social problem. Even worse, unemployment becomes a useful tool that can be used to force salary costs to lower and work rights to disappear.

It’s all in the name of “rationalisation”, of course. It is “good business”. “Rationalisation” is a very interesting word, used in business circles (and more recently in politics) as a euphemism for salary and job cuts. In psychology, however, it is used to describe a defence mechanism in which perceived controversial behaviours are logically justified.

Or, simply put, “making excuses”.

But we are not commodities and there is no excuse for treating us as such. No one cares what lumber thinks. What matters is that you get the best quality at the lowest price. Iron ore does not need to start a family. All it needs to do is to be good and cheap enough to be used for production.

When you drive the need to optimize production to the extreme, there would be nothing better than a worker that costs nothing, demands nothing and never stops. In other words, a robot. But robots are still pretty expensive to acquire and maintain. Humans remain a better choice for all but the heaviest and most repetitive tasks.

We are now treading on very dangerous ground. A society which places business concerns and interests over that of its own members will naturally push them to become as robot-like as possible. Is this the kind of society that we want?

Is this the crowning achievement of our technological and cultural evolution? Filling up factories and office buildings with human drones and streets with masses of starving, unemployed people?

Somehow, I do not think this is the bright future which we were promised. Somehow, I don’t think that all those billions of people living in democratic countries are voting to become slaves or beggars.

Or things to be exchanged.

Intermission #18

“”It is well enough that the people of the nation do not understand our banking and monetary system for, if they did, I believe there would be a revolution before tomorrow morning.”
-Henry Ford

This quote, attributed to Ford by Charles Binderup, reveals the most fundamental fact of life in the modern world. That it is governed by an economic system that is in no way fair to all parties involved. In fact, it is actually exploiting the majority of the population for the benefit of the few.

That, of course, has been the state of human affairs for most of our known history. However, it was thought that the abolition of monarchy and oligarchy in most modern states of the world, and the gradual adoption of democracy during the previous two centuries, would result in the diminishing of social and financial inequalities.

The struggle for human rights during the 20th century, particularly in its second half, made great progress on every level. Working conditions improved, gender and race discrimination was considerably reduced, freedom of expression and speech was solidified and the future seemed brighter. With the fall of the Iron Curtain, everyone in the developed world believed that we were heading towards a new, more enlightened age of peace and growth.

As we now know, that was very far from the truth. The truth is that while the economy has been globalized to an unprecedented extent, a number of political, legal, national, cultural and religious boundaries and differences have made a comparable progress impossible on an administrative level.

Take the EU for example. The monetary union was achieved before any kind of meaningful consensus could be reached on how the European Union could ever become a single entity politically, socially and, to an extent, culturally.

And since, as we all know, money makes the world go round, there are people and corporations now with the means of small countries who can move freely on a financial level with very little control.

Think of it this way: if the people play the role of a King, then banks, corporations and the rich are the barons. And these barons can now act as they please without really being accountable to the Crown. Because the King depends on them to keep his treasury running and because he has no effective way to control them.

If a King has no real power, then we are no longer talking about a monarchy. And if the “King” is actually the people and the people have no real power, then we are no longer talking about a democracy.

The dawn of the 21st century brought with it the promise of growth, equal opportunities for all, and a wealth of goods and services, all courtesy of the “free market”. Unfortunately, these hopes were quickly dashed by the spectre of a financial crisis with no apparent end.

In fact there is no crisis. Or rather, there would be no crisis if the global financial system was equipped with the proper safeguards against fraud, misuse and exploitation. Or, quite simply, if it was fair and sustainable. But that would entail more governmental control and that term alone is enough to send any economic liberalist screaming.

Because the “free market can regulate itself”. Only that it can’t. It is like thinking that you can put two death row prisoners in a cage to fight for their lives and expect them to play fair. They won’t. They will use any trick in their disposal to beat their opposition, no matter the cost.

Likewise, a corporation will do anything it can get away with in order to increase its advantage over the competition. If its customers or employees are hurt in the process, it’s fine as long as it is never proven or detected. Substandard equipment, processes and materials, abominable working conditions and practices, legal loopholes and tricks, literally anything will be employed in the fight.

Not all of them do it, but when most “players” do, then their competitive advantage either drives the rest out of business or into the same game.

Banks are no exception to this rule. Once considered one of the main structural pillars of any economy, they now operate solely and openly for their own profit, with any thought of promoting sustainable growth taking a back seat or getting kicked out of the car altogether.

If a prosperous country like Iceland can be effectively ruined financially by its own banks, then one easily understands how this could happen to any country in the world. All this happened with the government and the central bank of Iceland turning a blind eye to the incredibly irresponsible dealings of a handful of people.

Nevertheless, the first order of the day was not to arrest the persons responsible, but to hand the bill to the people of Iceland, as if they were somehow accountable for this mess.

The exact same thing is happening in most countries of the developed world right now. The people are asked to take the brunt of the cost for gross mismanagement on the part of bankers and corrupt politicians, even from other countries, all in the name of avoiding the deepening of a crisis which, by all accounts, is a bottomless pit.

The crisis will never end because we are trying to treat the symptoms, while the root causes remain unaddressed. The majority of people will see their incomes steadily decreasing, there will be steadily fewer and fewer jobs; work rights, which have been paid for in blood, will vanish.

This has been happening for two and a half years in Greece and in the poorer countries of Europe. Greece is on the verge of total collapse, socially and financially, the neo-Nazi party is on a meteoric rise and the troika is still demanding for more cuts and “reforms” which will be nothing short of disastrous.

But it will not end with Greece.

This system which kicks people out of their homes, jobs and deprives them of a future, which sends young people abroad as immigrants and which has replaced constitutional rights with violently enforced austerity measures will spread. Once the people of Greece and the other “PIGS” countries have been forced to work for wages comparable to those of China or starve, where do you think that most major corporations in Europe will move their manufacturing to?

And what will happen to their own workforce at home?

Fascism now wears a respectable face, a suit and carries a tablet. You may call it “austerity”, “reform”, “free market”, “economic rationalization” or however else you wish. I call it Finanscism.