Escape from Capitalism

Clara Mattai

https://m.youtube.com/watch?v=9M_dq_0ljsc

It’s:

the way we think about economics is itself structured to hide power

That meta-level critique is sharper than most popular economics writing. [1]

Value Proposition

Mattei didn’t invent a new critique of capitalism— she made an existing critique legible at a systems level that most people haven’t seen presented so coherently. This Italian doctor heals us by the following:

• centers power explicitly
• connects macro policy → everyday life
• removes the “neutrality illusion”

Notes

• Warren Buffett once said: “There’s class warfare, all right, but

it’s my class, the rich class, that’s making war, and we’re winning.”

• In Pennsylvania,

privatized water companies charged 84 percent more than public ones.

• After the war, however, the opposition to the experts’ vision was evident.

Ricci was aware that if the “contemplation” of the “divine science” was “the privilege of the few,” it was also true that this science “does not always appear beautiful, true and good to the profane public.”

• Here lies the key to

understanding technocracy, which etymologically means “power of the expert.”

• At the same time, this “purity” sweeps away all historical institutions of the

real economic world, forbidding questions about what should and shouldn’t be private property and how class relations need to be addressed. Most important, pure economics presumes eternal capitalism by avoiding the use of the term altogether.

• The insistence on objectivity was so relentless that it even manifested in the

change of the discipline’s name, from political economy to pure economics

• ‘pure economics.’”

The success of this mental straitjacket depended on its ability to appear impartial, which guaranteed the economist undisputed authority

• De’ Stefani and Ricci hailed Pantaleoni as “an Archangel with a

flaming sword” who was fighting against all other schools of economic thought to spread a “theoretical part of economic science, a nucleus of doctrines, that are independent of opinions, as well as of ethical, political and religious predilections. Something akin to physics and mathematics… an exact science definable as ‘pure economics.’”

• The new theoretical paradigm of “pure economics” was not yet dominant,

especially in Italy, where the economic tradition was historical rather than mathematical.

• Mussolini's fascists said Public opinion was

seriously and gravely warned of the necessity of putting an end to the increase in public expenditure. (But before expenditure, where is good system design?

• austerity promoters said - The notable increase of wages was not

accompanied by greater civilization.

• A pseudo-moral principle and economic policy known as austerity has

been perfected over time as a means to safeguard capitalism and weaken the possibility that any alternative economic system might emerge.

• I disagree. To say that markets have predestined outcomes (such as exploitation) is to deny human moral agency
• Our perspective is not moralistic nor individualistic but political and systemic, a

view that is both more powerful in terms of explanation and stronger in terms of practical action.

• As Shaikh reminds us, monopoly is not the antithesis of the market

but the result of its dynamics

• But as winners pile up victories, they can’t stop competing. Attempts to

alleviate the burden of real competition through political concessions never fully work. Amazon fiercely opposes its workers’ demands for more humane conditions because its advantageous position is not secure.

• rate of exploitation, which is the ratio between surplus value and the

cost of labor power. Can this be attributed to capitalists’ greed? Again, the answer is no. The irrelevance of greed reveals the force of market dependence. The system has commandeered our behavior. Morality, good or bad, has lost its agency.

• Economic growth is produced by a specific social order in which the majority of citizens are compelled to sell their labor power in exchange for a wage that is less

than the value they produce. This means that the profits generated by workers form the basis of economic growth. This is a fundamental characteristic of the society we live in, what I call the capital order.

• Class and racial oppression are inextricable.
• Poverty cannot

be passed off as a temporary condition of people living in the Global South (representing an astonishing seven billion out of the eight billion inhabitants of the planet) whose lot will soon improve thanks to economic growth and development.

• If

the global labor force has increased by more than a billion people since 1980, that has in part been through the destruction of alternative means of making a living.

• the

coercion it exerts is impersonal: there is no hierarchical figure compelling us to sell our labor. It is much simpler: if we don’t enter the labor market, we don’t survive.

• However, we

are also “free” in a second sense: we have been “freed” from our means of subsistence.

• Let’s stress a crucial, ironic point: while in many socioeconomic systems

preceding capitalism the political relationship of subjugation of the majority was explicit and evident, with capitalism, the idea that all citizens enjoy political and economic freedom emerged. Through the various processes that deprived people of their means of subsistence, most individuals have become “free workers.”

• The beginning of the historical process that led to today’s economic

organization was in no way peaceful. It required a violent expropriation of people’s means of subsistence on a large scale, which laid the groundwork for the emergence of the social relation at the core of our society: the wage relation.

• The emergence of capitalism created a new social status for the majority

of citizens: that of market dependence. Capitalism did not merely come about from a quantitative increase in trade. Markets existed already in antiquity, prior to capitalism. Think about the mosaics that depict the exchange of fruits and more in Roman piazzas. The split comes with the fact that our society now relies on the market for our survival and reproduction. The foundational element of capitalism is a specific class relation.

• In the strongly ahistorical mainstream reading, capitalism spontaneously

arose and developed through our impulse to maximize self-interest, breaking free from the chains of feudal law and privilege. The upshot of this approach is to internalize the idea that the system we live in today marks “the end of history.”

• To them, our economic system is a

mirror of who we really are: self-interested individuals who want to maximize our profit. This is false.

• Understanding them holds

emancipatory value.

• However, about one-third of the food produced (1.3

billion tons, with an approximate value of $1 trillion) goes to waste every year because it remains unsold and is thrown away.

• The spectacle of strongman

personalities distracts us from the fact that their policies are in perfect continuity with capitalism and its austerity logic.

• I want to clarify the

mechanisms that oppress us and identify the freedoms for which we must fight.

• Instead, I want to clarify that classist economic decisions

are the basis of the major problems afflicting our time.

• most people have no

alternative but to sell their ability to work for a wage and inevitably be paid less than the value they produce.

• What is the first

step in this direction? It is a radical change of perspective. There is nothing more political than the lens through which we view the world. Only if we learn to look at the world differently can we act differently.

• central banks,

which began removing key policy decisions from democratic scrutiny.

• the profits of saver-entrepreneurs are the result

of their virtuous behavior, enabling them to sign workers’ paychecks, which sounds good. The message is so persuasive that today almost everyone has internalized it: if we try hard enough, each of us can become a rich investor