Why American Capitalism (and Healthcare) Is So Rotten

In an earlier article, AMERICA BROKEN, I offered my own critique of American Capitalism, Healthcare, and Politics, with many perspectives shaped by former Labor Secretary Robert Reich. Today I offer a summary of ten articles that relate to the looming healthcare policy debate. I share this because Republicans already have said they want to gut the Affordable Care Act, but anything they may want to replace it with will almost certainly be far from universal healthcare, cost more, and deliver inferior results.

While these articles don’t specifically focus on healthcare, they do help explain Why American Health Care is So Expensive.

Introduction to today’s American Capitalism

In this 10-part series, Reich explores where Trump and Trumpism came from and asks,

“Is our economy flawed because democracy isn’t working?
Or is democracy in trouble because our economy is flawed?”

Whether we call ourselves Democrats or Republicans, or liberals or conservatives, we have shared many of the same anxieties. The last five decades have been marked by growing distrust toward the basic institutions of American society: government, the media, corporations, big banks, police, universities, charities, religious institutions, and the professions, including healthcare. With that, there is now a pervasive sense that the system is no longer working, at least not for most of us.

A growing number of Americans feel neglected and powerless. Whether black or white or Hispanic; straight or gay; Christian, Jewish, Muslim or Atheist; many of us feel stressed and see ourselves on a downward economic escalator. It’s been like that for years as the rich just keep getting richer and more powerful. Many of us have felt voiceless, want someone to blame, and want someone to stand up for us. The question is who.

Reich concludes that Donald Trump is not so much the cause of this confidence crisis we face, but the consequence.

Trump epitomizes what has gone wrong with trickle-down economics, which clearly has not worked, and he’s offering a “strongman” alternative to American democracy. Meanwhile, Joe Biden is trying to save our democratic system by fixing deep structural problems and growing the economy from the bottom up and middle out.

Among questions we will face in November include these: Do we prefer democracy to tyranny? Freedom to fascism? Tolerance to bigotry?

Each week, Reich looked at what’s really going on as we seek balance between serving the common good or American capitalism.

Part 1: Beyond Trump

If you want to understand where American capitalism is now and how to help move it in a more humane direction, you need to look under the hood. https://robertreich.substack.com/p/beyond-trump-why-american-capitalism

Part 2: What Really Happened To The American Dream?

The disappearance of what was once called the “American dream” provides a clue to why Trumpism attracts so many. We have the power to change all this, recreating an economy that works for the many rather than the few. https://robertreich.substack.com/p/what-really-happened-to-the-american

Part 3: The Myth of The Market

The so-called “free market” is a dangerous illusion that prevents us from examining rule changes and asking whom they serve. In this view, your pay simply reflects what you’re worth in the market; and if others rake in billions, the market decided they must be worth it. https://robertreich.substack.com/p/the-biggest-myth-of-all

Part 4: Freedom And Power

The Supreme Court’s Citizens United decision allowed unlimited political contributions and influence, but to one end? Among other things, corporations and the ultra-wealthy got deregulation of Wall Street as a result, along with lower trade barriers, weakened unions, weakened laws against monopolies, lower taxes and wider tax loopholes, and weakened laws against insider trading. https://robertreich.substack.com/p/freedom-and-power-why-american-capitalism

Part 5: The Pernicious Myth of Meritocracy

Under socialism for the rich, you can screw up big time and still reap big rewards and golden parachutes. It turns out that the most important determinant of someone’s future earnings is not merit but the wealth of the family they are born into. Sadly, many jobs with merit, such as teaching, nursing, social work, and caring for children, the elderly and the disabled are among the lowest-paid professions. https://robertreich.substack.com/p/the-myth-of-meritocracy-why-is-american

Part 6: Why The Hell Is Trump Rising in The Polls?

When people stop believing in the “American dream, many become vulnerable to the rants of a demagogue promising to “root out the communists, Marxists, fascists and the radical left,” even if it means taking a wrecking ball to democracy itself. Joe Biden’s challenge is selling a vision of reviving democracy to serve the common good and getting big money out of politics. https://robertreich.substack.com/p/the-real-reason-trump-is-rising

Part 7: How America’s Oligarchy Paved the Road to Fascism

As power and wealth moved to the top, the real divide became democracy versus fascistic oligarchy, as opposed to left v right. Moneyed interests – fearing higher taxes, stricter regulations, enforcement of anti-monopoly laws, pro-union initiatives, and price controls – are investing in anti-democracy candidates, like Donald Trump. To dominate politics and the economy, Trump’s biggest donors are now giving millions and could justify even more. [I can even imagine the first $1 trillion election.] Meanwhile, regular Americans are fighting each other, rather than looking upward to see where the wealth and power have really gone. https://robertreich.substack.com/p/the-american-oligarchy-why-is-american

Part 8: How The Oligarchy Shrank America’s Middle Class

For three decades after World War II, as workers produced more value, they got more pay, fueling even more economic growth. But then, in the late 1970s, the virtuous cycle came to a halt. Today, the median household is earning just a bit more than it did 45 years ago (adjusted for inflation), and most of our nation’s wealth has gone to the top. In this article, Robert Reich explains five major factors behind that shift. https://robertreich.substack.com/p/the-declining-power-of-the-middle

Part 9: Resurrecting Countervailing Power

Most people are working harder than ever and living paycheck to paycheck, seemingly unable to get ahead. And their children’s prospects aren’t any better. For four decades, the American worker has seen stagnant wages, widening inequality, a shrinking middle class, political corruption, and shredded social support. Many are angry and cynical. Why did this happen?

As big corporations, Wall Street, and wealthy individuals gained political power and changed the rules of capitalism, the power of labor unions and other countervailing power sources declined. What can be done about this?

The only way back toward a democracy and economy that promote the common good is to establish a new countervailing power based on progressive populism. The moneyed interests will continue to do what they do best: make money. The rest of us must do what we do best — use our voices, our vigor, and our votes to wrest back economic and political control. https://robertreich.substack.com/p/resurrecting-countervailing-power

Part 10: The Final Battle

With a populist viewpoint, Robert Reich explains (1) where we are, (2) where we’re currently heading, and (3) what we can do about it. We’re in a battle against the rule of law, a battle for the soul of America, and a battle between democracy and neofascism. Americans hold different views about many things, but we almost all value the Constitution and the Bill of Rights. We are committed to democracy, even with its many flaws. We support the rule of law and want to live in a nation where no one is above the law. With that in mind, Reich says it’s time to defeat Trump and Trumpism and reshape capitalism to work for the many rather than the few, making America a more perfect union. https://robertreich.substack.com/p/the-final-battle-why-american-capitalism

ABOUT THE AUTHOR

Wayne Caswell is a retired IBM technologist, futurist, market strategist, consumer advocate, sleep economist, and founding editor of Modern Health Talk. With international leadership experience developing wireless networks, sensors, and smart home technologies, he’s been an advocate for Big Broadband and fiber-to-the-home while also enjoying success lobbying for consumers. Wayne leans left to support progressive policies but considers himself politically independent. (contact & BIO)