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The Corruption of Capitalism: Why Rentiers Thrive and Work Does Not Pay

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"In this thoughtful book, Guy Standing focuses on the central problem of modern capitalism―the tendency of great wealth to transform itself into political power that corrupts the political process and generates laws and regulations favouring the wealthy―and suggests useful and important solutions."―Robert Reich, US Labor Secretary 1993-1997 There is a lie at the heart of global capitalism. Politicians, financiers, and global bureaucrats claim to believe in free, competitive markets, but have constructed the most unfree market system ever made. It is corrupt because income is channelled to the owners of property―financial, physical and intellectual―at the expense of society. This book reveals how global capitalism is rigged in favour of rentiers to the detriment of all of us, especially the precariat. A plutocracy and elite enriches itself, not through production of goods and services, but through ownership of assets, including intellectual property, aided by subsidies, tax breaks, debt mechanisms, revolving doors between politics and business, and the privatization of public services. Rentier capitalism is entrenched by the corruption of democracy, manipulated by the plutocracy and an elite-dominated media. The Corruption of Capitalism argues that rentier capitalism is fostering revolt, and concludes by outlining a new income distribution system that would achieve the extinction of the rentier while promoting sustainable growth. Guy Standing is a professor at the School of Oriental and African Studies, University of London, and is a Fellow of the Academy of Social Sciences. He is currently co-president of the Basic Income Earth Network.

368 pages, Hardcover

Published May 2, 2017

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About the author

Guy Standing

56 books174 followers
Guy Standing is a British professor of Development Studies at the School of Oriental and African Studies (SOAS), University of London, and co-founder of the Basic Income Earth Network (BIEN).

Standing has written widely in the areas of labour economics, labour market policy, unemployment, labour market flexibility, structural adjustment policies and social protection. His recent work has concerned the emerging precariat class and the need to move towards unconditional basic income and deliberative democracy.

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Displaying 1 - 21 of 21 reviews
Profile Image for Tara Brabazon.
Author 43 books537 followers
August 30, 2017
What a bloody ripper. I like Guy Standing. He tends to describe current injustices with accuracy and resonance. But his earlier books lack analysis - lack context - lack understanding - of why a particular socio-economic phenomenon emerges.

Not _The Corruption of Capitalism_. This is an amazing book. It offers a powerful - really powerful - exploration of finance capitalism and why so many citizens vote against their own best interest. Anger - righteous anger - is understandable. But this book shows why righteous anger is twisted and warped into xenophobia, racism and anti-immigration tirades.

This is a remarkable presentation of why inequalities have increased and the diabolical impact if this injustice is not addressed.

To quote Meatloaf - which is always a mistake - "read it and weep."
Profile Image for Mark.
511 reviews55 followers
May 10, 2024
Heteromation: the accelerating trend for tech development to result in more and more unpaid work, more captured time, less autonomy and less enjoyment for those who earn their income through employment of some kind.

Posting / commenting on Goodreads and all other socmed is in fact illustrative of the heteromation trend--we're all working for free, as our reviews and interactions are and will be captured and commoditized to the extent possible by the bald penis rocket duchebag who bought our work from the commons for peanuts.
- - - - - - -

While now a few years old, Standing's measured analysis of the mutation/evolution of capitalism under radical egoism is essential reading for anyone who thinks it's all going well.

Radical egoism applied to socio-economic relations was the provenance of Hayek, Lionel Robbins, Friedman, von Mises et al - founding members of the Mont Pelerin Society, which carefully laid out what has become politely known as neo-liberalism. Fundamental to neoliberalism is von Mises's pronouncement that only the 'market' can define value. Anything (e.g. the environment, social commons) without exchange value (an ability/intention to sell privately) is dismissed as irrelevant. Adherents have included Thatcher, Reagan, HW Bush, the Chicago School of Econ and Law Sophistry, Charles Koch and other financial capitalists. Most of the members of all major political parties have also now bought into, or have been bought by, the religion of neoliberalism.

This is also at the root of the captured sustainability movement known for its greenwashing--to be sustainable, they hold, enterprises must make a profit while doing 'good' - see Winners Take All: The Elite Charade of Changing the World.

Neoliberal elitist group-think tanks, of which there are now hundreds, include the benign-sounding and powerful:

Heritage Foundation
Hoover Institution
American Enterprise Institute
Cato Institute
Institute of Economic Affairs
Centre for Policy Studies
Adam Smith Institute
Civitas
Australian Centre for Independent Studies
Fraser Institute
Manhattan Institute for Policy Research
Pacific Research Institute

Five-sixths of the book is a dissection of the lies of rentier-supreme crapitalism that encourage and justify the devouring of the planet by a small minority of self-styled elites.

The Big Lies of rentier capitalism:
1. Global capitalism is based on free markets. By any measure, in fact, we have on earth today the least free 'market system' in the recorded history of humanity. Monopolies or a small number of only nominally competitive giants dominate every corner of the economy.

2. Intellectual property rights encourage and reward risk takers. The legal construct of IP is rather a means of appropriating the fruits of public investment and common property for personal profit at the expense of everyone else, aka piracy. Bill Gates made a pebble of a contribution to a Gibraltar of technological advances. Arguably, Gate's pebble is a piece of excrement and not a contribution at all, but that's a different rant. Why should any individual be allowed to capture the wealth created by generations of groups and individuals? The idea is obscene and anti-human, like someone selling our air and water. [www.vitalityair.com: This is a dude ('Moses') who formed a corporation (securing out-sized legal protections for himself and other beneficiaries) to 'capture' (their words) clean atmosphere and sell it to the uber-affluent. Our very air--the most essential and public of the once-abundant and erstwhile-common goods on our planet--is now stolen and sold for individual gain (commoditized).]

3. The institutional structure of global capitalism is good for growth. When actually it has hindered prosperity and has facilitated the privatization of public wealth and social goods. This structure includes the IMF, which works exclusively to siphon natural wealth and savings from the poorest people on earth and transfer it to the wealthiest via the big banks. This lie also holds prima facie that growth is always good and should be pursued above any other objective.

4. Profits from economic rents reflect managerial efficiency and returns to risk-taking. Perhaps the most absurd lie of them all. People like me have made it safer than ever to 'earn' 50% or more annually on mega investments while taking on no more risk than T-bond holders. Nearly all of the bloated finance industry's profits are made from low-risk trading with each other--and screwing those without political voice. Managerial efficiency is defined by the share of employee and publicly-generated value that is seized and transferred to those who do no work, make no contributions and take no risks.

5. Work is the best route out of poverty. The very existence of the growing and ultra hard-working precariat stands testament to this lie. The hardest working honest people are barely surviving, if at all.

Class Pyramid circa 2024

The necessary rise of the precariat
Standing argues that the Marxist atavistic ignorance of the now-massive precariat as a coherent political group, and continuing to expect any kind of proletariat-led revolution is pure fantasy: Those who insist on nineteenth-century solutions to 21st-century problems do progressive politics no good at all. As demonstrated in the US and the UK, the working class is easy prey to fake populists and neo-fascists.

Rather, he argues persuasively that the precariat must lead the counter-movement, with their potential allies the proficians, who are themselves, with less-secure lives of platformed, contracted, and divided work, one misfortune away from precariousness. These groups are the most directly injured by the 21st century triumph of rentier capitalism.

Requisites for successful revolt:
Here, with only forty pages remaining, Standing gives his best rushed shot at outlining the revolution. He argues that the precariat-led revolt must have three features: [1] a sense of unity around commonly held beliefs; [2] a sustainable understanding of the flaws, inequities and unsustainability of existing arrangements; and [3] a reasonably clear vision of feasible goals. Yes, none of these are insightful 'requirements', but Standing goes further, arguing that we need a new Charter of Liberties and a new distribution system to finally euthanize the rentier:

1. Democratic sovereign wealth funds - to pool rental income, including the profits from the exploitation of natural resources, e.g. the Alaska Permanent Fund and the Norwegian Government Pension Fund Global.
2. Universal basic income to equitably distribute the the SWF's proceeds to citizens as a counter to 'workfare'.

I'm anxious to get into If We Burn: The Mass Protest Decade and the Missing Revolution which has been waiting patiently but with an disconcerting baby blue stare... Hoping for some insight into how we build and sustain a movement that actually goes forward for humanity and makes improvements for all that cannot easily be curtailed by the plutocrats and their lackies.

References:
a. Rent-seeking = making money from money, not producing anything, aka taking unearned income. While any return-seeking investment may be broadly defined as rent-seeking, the extreme form that is destroying the world is made possible by political connections--from outright graft to a lack of competition, lax regulation and the transfer of public assets to private at bargain prices. (Useful, sustainable economic activity and production is sooo working class).

b. Quantitative Easing (QE) = wholesale transfer of wealth from workers (the innovators and producers) to Big Capital owners (deadly parasites).

c. Precariat = Where about 60% of the population of the world presently finds itself--one crisis (or, in the U.S., one unexpected medical bill) away from ruin. c10% are utterly destitute and fallen out of society entirely. I was born into the precariat and 'lucked' my way over 30+ years into the salariat - those of us who perform work useful only to ourselves and the plutocracy.

d. Subsidies = see QE.

e. Free market economy = a fairy tale / nightmare of rentier capitalists.

f. IP and other property 'rights' = see QE.
Profile Image for Willian Fonseca.
3 reviews1 follower
August 6, 2017
This book was exactly the kind of reading I was after. I am in this moment where I am interested in understanding what is going on with Democracies and the Capitalism system around the World. What are the trends that are defining these changes? The rise in inequality, the rise in the gap between the poor and the rich. Workers rights. Platform services. Disruptive technologies, and so on. Guy Standing covers many interesting subjects in his book and brings light over some myths about Capitalism and Democracy. It is a must read.
Profile Image for Erkin Unlu.
175 reviews27 followers
June 20, 2023
This is a depressing must read for anyone who wants to understand what’s gone wrong with our world economically. I have never noted this many ffs in a book. I will try to write a longer review when I have the chance.
156 reviews2 followers
April 15, 2024
Standing points to the rentier capitalism we have now in Britain as being responsible for poverty and increasing inequality. Rentiers are those who derive their income from ownership of assets; rent, property, inherited wealth, intellectual property. It is the quintessential "something for nothing" culture, whereby the wealthy increase their wealth through things they've inherited from other wealthy people and withold money that could go to the public (through avoiding taxation and privatisation of public assets/ publicly funded assets). It shows how our society is rigged in favour of the wealthy and the lies propagated by rentier capitalism, epitomised in awful right-wing publications that denounce the poor as lazy and wanting something for nothing, when actually this couldn't be more true of the super-wealthy.

The majority of the book analyses society and the corruption of capitalism, with the remaining 10% providing solutions in the form of basic income and state monopoly capitalism that encourages businesses but allows proceeds to flow to the public as well as to private interests. An incredible book which I couldn't put down! Whether you have a little or a lot of knowledge of British politics, Standing breaks it down into an easy to understand book. I'd also recommend Owen Jones to find out more of the problems that face our society, which I believe the majority are unaware of (ask anyone who leeches more from the system- the super-wealthy or benefit fraudsters and most would point to the latter rather than the former, in the words of Boris Johnson, the amount stolen by benefit fraudsters is "chicken feed" compared to how much the plutocrats rob).

A wonderful book which also refers to other societies, giving a clear picture of global rentier capitalism, I definitely feel more knowledgeable than before!
Profile Image for Aakash Aggarwal.
43 reviews10 followers
December 17, 2018
This book is a fucking belter! In my view, this is by far the best book I have read in a long, long, long time. Since my birth actually. Thrilling, chilling, directed against the elites - Guy Standing nails the text right in the head with superlative content and even better, strong references!

Needless to say, this might one of those books that millennials should read. The book covers extremely sensitive issues such as - the precariat's plight, plutocracy and it's insidious financial gain ploys, international trade, rent-seeking by big banks (read: Goldman Sachs), basic income, landlordism, wage insecurity, the elite's growing influence in governance, privatization of commons and much more.

Words are wasted to justify the quality of this book. Get this, read it and open your mind.

9 reviews
October 1, 2017
It raises some good points about the importance of balancing intellectual property rights on the one hand with broadly shared prosperity on the other. It is also an interesting look at the discussion in Britain over the sharing economy's social implications is unfolding (or at least how the discussion is unfolding on the political left). There are other interesting points too.

But, too much of it reads like a long rant, rather than a thoughtful analysis of what solutions should be pursued to combat growing inequality. Although solutions are offered (Standing suggests, among other things, a universal basic income), the book lacks in-depth analysis.

Fun to read but I felt I didn't come away with much new knowledge.
Profile Image for Alfonso Junquera perez.
308 reviews9 followers
January 27, 2020
Un libro imprescindible para abrirnos los ojos ante el paradigma neoliberal que está destruyendo el sistema de clase media imperante en la actualidad.
En mi caso tambien me valió para cabrearme bastante en muchos de los capitulos.
Profile Image for Leni.
52 reviews
April 3, 2025
A very clear analysis on the rise of neo-liberalism and a plan of action for how to take back the free market. The solutions are proposed as two pillars: basic income for all coupled with creating a sovereign fund of wealth built from the proceeds of economic activity. There is a plethora of evidence as to how these things would work, pilot studies that show that they would work and not- as capitalists might argue- make people lazy, and by the time you get to the concluding solutions you will know there is plenty of money to make these things possible and methods to continue funding going. The neo-liberalistic parasite that is thinning our democracy can be halted through revolt, reform, redistributing wealth from finances, bankers, and rentiers, and taxing the rich.
My favorite chapter by far was 'The Corruption of Democracy' which shows how plutocrats are controlling politicians and becoming politicians (cough cough Trump). This is not a democracy, we need Citizens United to be overturned: stop the banks from controlling our government!
224 reviews1 follower
November 18, 2022
In many places, excellent. Weaker on proposals of how change might come about. I didnt always agree with his section on patents, in some cases, such as antibiotics, i think there is a case for patent life to be extended. But why software should have copyright protection doesnt eem right. But many of the political warning signs are there: (inherited) wealth having too much political say, witness Trump and Musk's low grade twitterings. Falling living standards might trigger cohesive collective action, but potentially of the none too pleasant variety. But the precariat bear the rump of the pain, the middle classes the rump of the taxes, and the super wealthy get off tax free, as always.
Author 1 book
October 12, 2017
An excellent, absorbing read. Guy Standing is to be commended for his attention to detail and the easy to read style that makes this book impossible to put down.
His comments about the 'gig' economy are particularly salient with the withdrawal of Uber's licence to operate in London.
If anyone who is struggling to make ends meet and wants to know whose hand is on the red hot poker sticking out of their rear end, this book will provide the answers.
Profile Image for Uros.
35 reviews
January 24, 2024
I got to page 100 out of 300 before stopping as I found it too all over the place. The authors jumps chronologically and from country to country seemingly every paragraph. The section on intellectual property was very good and I might have to come back to that at some point as the part about academic journals like Springer and Elsevier extracting giant rent surpluses was fascinating.
23 reviews
July 19, 2018
Shines a light on the inequality and corruption of the current economic system enshrined by western governments, industries, and politicians. While its program for justice could be more developed, its goals are praise worthy. It is a call to action that should be spread.
Profile Image for Lisa.
110 reviews
June 6, 2021
The end in particular is worth reading, and there are plenty of juicy/outrageous tidbits about the evils of capitalism throughout. Still, the breadth (and therefore shallow discussion) of material makes this useful primarily to the initiated.
Profile Image for Amir Hassan.
53 reviews7 followers
December 23, 2018
A good account of how capitalism has been corrupted, how markets are anything but free, and why we should take it back. Feels like an angry rant, most times.
3 reviews
August 21, 2022
Standing has created a good reference manual of various forms of rentier corruption to the capitalist system, however, his analysis of the root causes of these developments is shallow, and potential suggested solutions lack any unique insight.

An easy read as an introduction to the subject.
Profile Image for Roel Peters.
182 reviews6 followers
June 25, 2017
Guy Standing is one of the biggest authorities in the basic income movement. While not spending much text the subject in this book, he offers an answer to the question: "What will it solve?" This 320-pages book can briefly be summed up as follows: "Globalization reduced labour's bargaining power, lowering wages, creating the precariat. The precariat lives from debt and sells its labour through 'labour brokers' (AMT, TaskRabbit) to companies that thrive on privatised commons, subsidies and tax breaks. The biggest winner in this scheme is the rentier... and work does not pay. A basic income will halt that evolution."

The book does not go into much detail but presents the reader a progressive narrative, constructed from carefully picked research and anecdotal proof. Very recommended for anyone with a little interest in post-2008 history and economics.
Displaying 1 - 21 of 21 reviews

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