A timely book on the internet by a respected and prolific media critic. The author, Robert McChesney, notes how, after the internet's development by the public sector, it was initially championed by anti-capitalists, but has been co-opted by capitalism and - in turn - has accelerated and consolidated capitalism. Here are a few good quotes that leapt out at me:
[The] respectable left... sees its role as humanizing capitalism, not questioning it.
Whenever scholars examine their own society, it is generally taboo to challenge the prerogatives and privileges of those who stand atop it and benefit from the status quo, even in political democracies.
Capitalism tends to promote inequality, monopoly, hypercommercialism, and stagnation, all of which are corrosive to political democracy.
The system [of capitalism] is the most fluid and dynamic class society in history, although that is a bit like saying someone is the best ice hockey player in Sri Lanka.
It is true that with the advent of the Internet many of the successful giants — Apple and Google come to mind — were begun by idealists who may have been uncertain whether they really wanted to be old-fashioned capitalists. The system in short order has whipped them into shape. Any qualms about privacy, commercialism, avoiding taxes, or paying low wages to Third World factory workers were quickly forgotten.
“Wealth gives rise to a me-first mentality,” as the psychologist Dacher Keltner puts it, and the greed it rationalizes “undermines moral behavior.”
Internet-related industries have led in offshoring manufacturing jobs, primarily to low-wage locales like China.
In addition, offshoring and the threat of more offshoring put tremendous downward pressure on wages and working conditions for jobs that remain in the United States (and other advanced countries).
It is difficult to reconcile such extreme inequality with anything but a superficial democracy.
“The real key to success” in a capitalist economy, Joseph Stiglitz writes, “is to make sure there won’t ever be competition for a long enough time that one can make a monopoly killing in the meanwhile.”
Capitalism tends to evolve into what is called monopolistic competition, or oligopoly. These are markets where a handful of firms dominate output or sales in the industry and have such market power that they can set the price at which their product sells.
For [billionaire investor Warren] Buffett it is all about monopoly power, not management.
The legendary adman Rosser Reeves was reputed to have repeated the same presentation for years for newly hired copywriters at his Ted Bates advertising agency in the 1960s. He would hold up two identical shiny silver dollars, one in each hand, and would tell his audience in effect: “Never forget that your job is very simple. It is to make people think the silver dollar in my left hand is much more desirable than the silver dollar in my right hand.”
Inger Stole notes the irony that the same corporations that have battled successfully to denude the public sector of the resources it needs to tackle social problems turn around and offer to address the same problems as part of marketing campaigns, with dubious outcomes that do only one thing for certain: commercialize public life.
Technology is central to growth, and growth is central to capitalism.
What has been missing from the narrative is that the nations with the freest press systems are also the nations that make the greatest public investment in journalism and therefore provide the basis for being strong democracies.
“Democracy [is] when the indigent, and not the men of property, are the rulers,” Aristotle observed in his Politics.
Hayes wrote, “This is a government of the people, by the people, and for the people no longer. It is a government by the corporations, of the corporations, and for the corporations.”
“We may have democracy, or we may have wealth concentrated in the hands of a few, but we can’t have both.”
It is implicitly understood that if a disproportionate percentage of lower-income people do not get involved in politics, the wealthy benefit.
For all of the digital revolution’s accomplishments, it has failed to deliver on much of the promise that was once seen as inherent in the technology.
If the Internet actually has improved the world over the past twenty years as much as its champions once predicted, I dread to think where the world would be if it had never existed.
Had the matter been left to the private sector, the Internet may never have come into existence.
In corporate-think, the proper role of the government goes like this: make the massive initial investments and take all the risk. Then, if and when profitable applications become apparent, let commercial interests move in and rake in the chips, soon followed by shamelessly denouncing government taxation and regulation as interference with the productive work of the private sector.
“We’ve come to the point,” Peter Nowak writes, “where it’s almost impossible to separate any American-made technology from the American military.”
Paul Weyrich, founder of the Heritage Foundation and one of the great organizers of the corporate right since the 1970s, put it bluntly in a 1980 speech to conservative activists: “I don’t want everybody to vote . . . our leverage in the elections quite candidly goes up as the voting populace goes down.”
A duopolistic party system in a modern capitalist society like the United States will tend to provide a “competition between elites,” which “formulate the issues.” The basics of the political economy are agreed upon by the two parties and are off the table for public debate or discussion.
The poor and even middle class have virtually no influence over their elected representatives. Not so for the wealthy.
Allowing businesses to write off their advertising expenditures as a business expense on their tax returns not only costs the government tens of billions annually in revenues, but also encourages ever greater commercialism in our culture.
If there is a bias in the amount and tenor of coverage, it should be toward those with the least economic and political power.
As journalism subsidies increase, the overall reporting in those nations does not kowtow but in fact grows more adversarial to the government in power.
“The process of brain-washing the public starts with off-the-record briefings for newspapermen,” I.F. Stone wrote.
Technologies, far from relieving workloads, have made it possible for the typical American worker to provide as much as a month and a half of unpaid overtime annually, just by using their smartphones and computers for work at all hours while outside the workplace: “Almost half feel they have no choice.”
Nothing enraged the Internet community more than advertising and commercialism.
The first commercial e-mail message... was flamed by countless Usenet users, meaning that they clogged the advertiser’s inbox with contemptuous messages demanding that the sales pitch be removed and such conduct never be repeated.
In short, the Internet monopolists sit at the commanding heights of U.S. and world capitalism. When Fortune magazine compiled its list of the top twelve entrepreneurs of the past generation, the founders of Internet giants Apple, Microsoft, Amazon, and Google occupied four of the top five slots.
High-tech firms effectively pay a third less in taxes on the same amount of profits as the balance of the U.S. corporate community.
“The best minds of my generation,” an early Facebook employee told The Atlantic’s Alexis Madrigal, “are thinking about how to make people click ads.”
Only a small number of people are aware, for example, that over half of the roughly 84 data categories Facebook collects about its users are not available for them to see.
It “is a surveillance tool made in heaven,” John Naughton writes, “because much of the surveillance can be done, not by expensive and fallible human beings, but by computers.”
Without meaning to be pejorative or alarmist, it is difficult to avoid noting that what is emerging veers toward a classic definition of fascism.
The journalism crisis has yet to reach the boardroom.
Tim Rutten of the Los Angeles Times captured the essence of this requirement in his assessment of AOL’s 2011 purchase of the Huffington Post: “To grasp the Huffington Post’s business model, picture a galley rowed by slaves and commanded by pirates.” In the “new-media landscape,” he wrote, “it’s already clear that the merger will push more journalists more deeply into the tragically expanding low-wage sector of our increasingly brutal economy.”
“In the new media,” Rutten concludes, we find “many of the worst abuses of the old economy’s industrial capitalism—the sweatshop, the speedup, and piecework; huge profits for the owners; desperation, drudgery, and exploitation for the workers. No child labor, yet, but if there were more page views in it . . .”
Journatic’s local coverage is provided by low-paid writers and freelancers in the United States and, ironically enough, the Philippines, where Journatic hires writers “able to commit to 250 pieces/week minimum” at 35 to 40 cents a piece.
StatSheet, a subsidiary of Automated Insights, uses algorithms to turn numerical data into narrative articles for its 418 sports websites.
A system that promotes poverty, inequality, waste, and destruction—to the point of making the planet uninhabitable—deserves no free pass from democratic interrogation in the present, whatever its past achievements.
The crisis of our times is that capitalism undermines democracy. The choice we face is whether to expand democracy or let it continue to shrivel: Expanding it requires confronting really existing capitalism head-on. It is the defining issue of our times, the basis for the critical juncture in which we live.