Oct 18th 2017

Is There an Alternative to Capitalism?

by Sam Ben-Meir


Sam Ben-Meir is an assistant adjunct professor of philosophy at City University of New York, College of Technology.

It never ceases to surprise me how merely the suggestion that our current global capitalistic system is not the best humanity can do for itself, is so often met with virulent hostility. One would think that when we are still recovering from the economic crisis of 2007-2008 (and many economists see an even worse crisis on the horizon), when inequality has been steadily rising since the neoliberal turn of the early 1980s, when real wages have remained virtually stagnant, and the list goes on – one would think that perhaps we would keep an open mind regarding alternatives; instead of buying the tired old argument that anything else must either lead to totalitarianism, or be incurably utopian.

Capitalism has always been about movement, and our era of deregulated globalization has only further augmented the hyper-mobility of capital. As a consequence, this has produced a virtually endless supply of cheap labor – trade liberalization has seen jobs flee the country and compelled developing countries to deregulate and turn a blind eye to labor standards so as to maintain a competitive advantage. Trump’s promises to keep jobs at home have been mostly empty rhetoric.

The growing concentration of wealth among a tiny few has been helped along by a tax code that has shifted the burden off the very rich and onto the middle class. And now the Republicans want to cut taxes on the rich yet further: the wealthy will pay only thirty-five percent on their income taxes – down from thirty-nine point five percent. In addition, Trump’s proposal gives the rich a substantial tax break by eliminating the estate tax, which will only further exacerbate economic inequality.

How is this defensible? The main argument one hears is that fallacy that Republican leaders have continued to foist upon the American public since President Reagan: that high taxes on the top income bracket is bad for growth; that slashing taxes will spur the economy.

This is not historically accurate – in fact, it is a bald-faced lie. The period in which America enjoyed unprecedented growth, during the fifties and sixties and until the late seventies, the tax rate never fell below seventy percent. America's growth during that time was four to five percent. Then in 1981, Reagan’s Economic Recovery Tax Act (ERTA) cut the marginal tax rate twenty-five percent across-the-board, with the top marginal tax rate falling from seventy to fifty percent. In 1987, Reagan lowered the top tax rate from fifty to thirty-eight point five percent, where it has hovered since. The average rate of growth since the 1970s has been two percent. Indeed, there is no indication that Trump's “trickle-down” tax plan will engender any significant growth.

What we have seen is that under neoliberalism there has been a redistribution and concentration of wealth in the hands of the very rich few. Real wages have remained stagnant while economic disparity has increased since the mid- to late-1970s when “the uppermost tier’s income share began rising dramatically.” A 2015 report by the Economic Policy Institute states that between 1979 and 2013, “the hourly wages of middle-wage workers … were stagnant… The wages of low wage workers fared even worse, falling 5 percent from 1979 to 2013.” As Warren Buffet acknowledged, “There's class warfare, all right, but it's my class, the rich class, that's making war, and we're winning.”


Last year, I used the October 13 birthday of Great Britain's late Prime Minister Margaret Thatcher as an occasion to observe how her vision of laissez-faire capitalism still holds ideological sway in our globalized landscape. Her famous claim that 'There is no alternative' to capitalism needs to be abandoned once and for all. At the very least, we need to begin to consider alternatives to the kind of capitalism we have.

A good place to start is with extending democratic practices to new social spaces currently occupied by hierarchical and bureaucratic organizations, including the urban setting as well as the workplace. The fact is that there is an alternative to the way firms are run on the capitalist model. That alternative is worker self-management and it has seen remarkable success.

Look, for example, at the Mondragon Corporation centered in the Basque region of Spain. Mondragon has a thoroughly democratic structure of governance with a General Assembly that meets annually, as well as a supervisory council that appoints management, a social council with jurisdiction concerning matters to do with workers' well-being, and a watchdog council that monitors and gathers information for the general assembly. A federation of supportive cooperative firms, Mondragon has now over a dozen education centers including a polytechnical university. In 2015, Mondragon generated revenues in excess of twelve billion euros, and employed over 74.000 people.

To claim that we have no choice but to accept the global capitalist status quo is simply no longer plausible. This is not to say that worker self-directed firms will be idyllic, that they will all succeed, or that they will not face a myriad of unforeseen challenges. However, they have shown themselves to be successful, even while operating in highly competitive environments. If companies are self-directed and workers themselves participate in the decision making process regarding, for example, the location of production, it becomes far more unlikely that we will see plant closures, outsourcing, job exports, and so on.

Such firms will embrace democratic processes in which goals can be internally defined: where there is equality of voting power, and workers themselves make decisions about production and distribution. Furthermore, in the process of nurturing participatory attitudes, we not only facilitate and reinforce self-management within the firm (or neighborhood, school, etc.): we are also educating and empowering individuals to seek  self-determination and democratic participation in the political arena.

The same fundamental commitments that urge us to promote political democracy should compel us to promote economic democracy as well, a society in which enterprises are collectively governed by all those actively contributing to the process of production. Indeed, economic democracy is essential to the legitimacy of a fully democratic society – which is to say that democratic legitimacy must be grounded in the social realm, as much as the political.




To subscribe to Facts and Arts' weekly newsletter, please click here.

To follow Facts & Arts' Editor, Olli Raade, on Twitter, please click here.

If you have something to say that you want to say on Facts & Arts, please

Write to the Editor, or write a comment in the comments section.

Browse articles by author

More Essays

Sep 11th 2023
EXTRACT: "Many people have dipped their toe into the lazy gardener’s life through “no mow May” – a national campaign to encourage people not to mow their lawns until the end of May. But you could opt to extend this practice until much later in the summer for even greater benefits. Allowing your grass to grow longer, and interspersing it with pollen-rich flowers, can benefit many insects – especially bees. Research finds that reducing mowing in urban and suburban environments has a positive effect on the amount and diversity of insects. Your untamed lawn won’t only benefit insects. It will also encourage more birds, such as goldfinches, to use your garden to feed on the seeds of common wildflower species such as dandelions."
Aug 30th 2023
EXTRACT: "Eliot remarked that Shakespeare's greatness not only grew as the writer aged, but that his development became more apparent to the reader as he himself aged: 'No reader of Shakespeare... can fail to recognize, increasingly as he himself grows up, the gradual ripening of Shakespeare's mind.' "
Aug 25th 2023
EXTRACTS: "I moved here 15 years ago from London because it was so safe. Bordeaux was then known as La Belle au Bois Dormant (The Sleeping Beauty). It's the wine capital of France and the site of beautiful 18th century architecture arrayed along the Garonne river." ---- "What’s new is that today lawlessness is spreading into the more comfortable neighborhoods. The favorite technique is to defraud elderly retirees by dressing up as policemen, waterworks inspectors or gas meter readers. False badges including a photo ID are easy to fabricate on a computer printer. Once inside, they scoop up most anything shiny as they tip-toe through the house."
Aug 20th 2023
EXTRACT: "The 1953 coup d'etat in Iran ushered in a period of exploitation and oppression that has continued – despite a subsequent revolution that led to huge changes – for 70 years. Each year on August 19, the anniversary of the coup, millions of Iranians ask themselves what would have happened if the US and UK had not conspired all those years ago to overthrow Iran’s democratically elected leader."
Aug 18th 2023
EXTRACT: "Edmundo Bacci: Energy and Light, curated by Chiara Bertola, and currently on view at the Peggy Guggenheim Collection in Venice, is the first retrospective of the artist in several decades. Bacci was a native of Venice, a city with a long and illustrious history of painting, going back to Giorgione and Titian, Veronese and Tiepolo. As a painter, he was thoroughly immersed in this great past – as an artist he was determined to transform and remake that tradition in the face of modernity and its vicissitudes, what he called “the expressive crisis of our time.” That he has slipped into obscurity affords us, at the very least, an opportunity to see Bacci’s work essentially for the first time, without the burden of over-determined interpretations or categories."
Aug 12th 2023
EXTRACT: "Is Oppenheimer a movie for our time, reminding us of the tensions, dangers and conflicts of the old Cold War while a new one threatens to break out? The film certainly chimes with today’s big power conflicts (the US and China), renewed concern about nuclear weapons (Russia’s threats over Ukraine), and current ideological tensions between democratic and autocratic systems. But the Cold War did not just rest on the threat of the bomb. Behind the scientists and generals were many other players, among them the economists, who clashed just as vigorously in their views about how to run postwar economies."
Aug 5th 2023
EXTRACT: "I have a modest claim to make: we need Bruno today more than ever. This is because he represents an intellectual antidote to the prevailing ideology of today which tells us that we are doomed to finitude, which comes down politically to the assertion that there is no alternative to the reign of global capitalism. Of course, Bruno did not know about capitalism, globalization or neoliberalism. What he did know however is that humanity is infinite. That we are limited only by our own narrowness of vision."
Jul 26th 2023
EXTRACT: "We studied 55,000 people’s dietary data and linked what they ate or drank to five key measures: greenhouse gas emissions, land use, water use, water pollution and biodiversity loss. Our results are now published in Nature Food. We found that vegans have just 30% of the dietary environmental impact of high-meat eaters. The dietary data came from a major study into cancer and nutrition that has been tracking the same people (about 57,000 in total across the UK) for more than two decades."
Jul 26th 2023
EXTRACT: "Art historians have never understood economics, and as a result they believe they can ignore markets: in their view, the production of art can be treated in isolation from its sale.  This is of course disastrously wrong.  But their ignorance has led to a neglect of the economic history of art. "
Jul 13th 2023
EXTRACT: ".....art purchases and prices have plateaued. The prevailing mood at this year’s Art Basel was one of anxiety, as dealers roamed the halls searching for answers. Some speculate that the state of the art market indicates declining confidence among the world’s richest people. When the economy is booming, collectors are more inclined to invest in art and take on leverage, especially when borrowing costs are low. But these dynamics can shift quickly during downturns. The 2008 crisis, for example, caused art prices to fall by 60%."
Jul 13th 2023
EXTRACT: "But even if you’re having trouble motivating yourself to exercise, many types of physical activity may be helpful as long as you do them regularly. For example, walking, gardening and household chores (such as cooking, hoovering and dusting) may prevent symptoms worsening and improve quality of life. And, these activities may be easier to incorporate into your daily routine than a gym workout."
Jul 12th 2023
EXTRACTS: "Insect populations are declining worldwide at a rate of almost 1% per year. This decline is alarming. Insects play a crucial role in pollinating crops, controlling crop pests and maintaining soil fertility. In the UK alone, pollination provided by bees and other insects adds over £600 million to crop production every year. That’s about 10% of the country’s total annual crop value. Through pollination, insects also make sure that fruit and vegetables are packed full of the vitamins and minerals needed for healthy human diets. Insufficient pollination would result in lower-quality foods, less choice and higher food prices." .... "Just like fertiliser and water, these insects should be considered a legitimate agricultural input that needs to be protected and managed sustainably."
Jul 6th 2023
EXTRACT: "But whatever the truth may turn out to be, the Lindemann affair raises a question that has been hotly debated over the past few years, especially in the United States, but more and more in Europe, too: must art be judged by the private behavior of its creator? It has become fairly common for critics to denounce Pablo Picasso’s paintings because he made women in his life suffer. A well-known movie critic declared that he could no longer view Woody Allen’s films in the same way after the director was accused, without any evidence, of abusing his seven-year-old adoptive daughter. Roman Polanski’s movies are no longer distributed in the US, because he drugged and raped a 13-year-old girl in 1977."
Jun 25th 2023
EXTRACT: "There’s a great deal of research showing that people with negative personality traits, such as narcissism, ruthlessness, amorality or a lack of empathy and conscience, are attracted to high-status roles, including politics. In a representative democracy, therefore, the people who put themselves forward as representatives include a sizeable proportion of people with disordered personalities – people who crave power because of their malevolent traits. And the most disordered and malevolent personalities –the most ruthless and amoral – tend to rise to the highest positions in any political party, and in any government. This is the phenomenon of “pathocracy”, which I discuss at length in my new book DisConnected."
Jun 11th 2023
EXTRACT: "Although there’s still much we don’t know about flavanols – such as why they have the effect they do on so many aspects of our health – it’s clear from the research we do have that they are very likely beneficial to both memory and heart health."
May 4th 2023
EXTRACT: "My recent book on them 25 Unforgettable French Faces covers a wide range of individuals, from an aging Brigitte Bardot to architect Gustave Eiffel. Both of them changed the face of France. In the upcoming sequel, 25 More Unforgettable French Faces, I have completed my collection of 50 examples. The new book, now in progress, ranges from The Bad Boy of the 18th Century (Voltaire) to A Man of Principle (Jean-Paul Sartre) and Big Dark Eyes, (the actress Audrey Tautou)."
May 4th 2023
EXTRACT: "Silicon solar cells are an established technology for the generation of electricity from the sun. But they take a lot of energy to produce, are rigid and can be fragile. However, a new class of solar cell is matching their performance. And what’s more, it can now be printed out using special inks and wrapped flexibly around uneven surfaces."
Apr 21st 2023
EXTRACT: "You learn from your mistakes. At least, most of us have been told so. But science shows that we often fail to learn from past errors. Instead, we are likely to keep repeating the same mistakes." .... "Sometimes we stick with certain behaviour patterns, and repeat our mistakes because of an “ego effect” that compels us to stick with our existing beliefs. We are likely to selectively choose the information structures and feedback that help us protect our egos." ..... "....there are simpler things we can do. One is to become more comfortable with making mistakes. We might think that this is the wrong attitude towards failures, but it is in fact a more positive way forward."
Mar 17th 2023
EXTRACTS: "The intensifying concentration of wealth, and unjustifiable level of income inequality is proving disastrous in many ways. Here are just a few of them. First, less equal societies typically have more unstable economies, and this country is no exception." --- "Second, there is an incontrovertible link between economic inequality and violent crime. The fact is that rates of violence are higher in more unequal societies." --- "Third, the undeniable fact is that the greater the economic inequality that exists, the worse it is for general health outcomes. What is sometimes overlooked is that income inequality is bad for health outcomes across economic strata, not just for those in poverty. To be sure, poor health and poverty are closely linked; but the epidemiological research shows that high levels of economic inequality “negatively affect the health of even the affluent, mainly because… inequality reduces social cohesion, a dynamic that leads to more stress, fear, and insecurity for everyone.” People live longer in countries with lower levels of inequality, as the World Bank reports. In the United States, for example, “average life expectancy is four years shorter than in some of the most equitable countries.” "
Mar 10th 2023
EDITOR: "Quantum mechanics, the theory which rules the microworld of atoms and particles, certainly has the X factor. Unlike many other areas of physics, it is bizarre and counter-intuitive, which makes it dazzling and intriguing. When the 2022 Nobel prize in physics was awarded to Alain Aspect, John Clauser and Anton Zeilinger for research shedding light on quantum mechanics, it sparked excitement and discussion. But debates about quantum mechanics – be they on chat forums, in the media or in science fiction – can often get muddled thanks to a number of persistent myths and misconceptions. Here are four."