Capitalism 101: Market Think

“Mixed Drive for Autovehicles.”

“Mixed Drive for Autovehicles.”


“Be it known that I, Henri Pieper, a subject of the King of Belgium, residing at 18 Rue des Bayards, in Liege, Belgium, have invented new and useful Improvements in Mixed Drives for Autovehicles…The invention…comprises an internal combustion or similar engine, a dynamo motor direct connected therewith, and a storage battery or accumulator in circuit with the dynamo motor, these elements being cooperatively related so that the dynamo motor may be run as a motor by the electrical energy stored in the accumulator to start the engine or to furnish a portion of the power delivered by the set, or may be run as a generator by the engine, when the power of the latter is in excess of that demanded of the set, and caused to store energy in the accumulator.”

Henri Pieper, quoted in Hybrid Cars, March 1, 2009

This is one of those choice little fragments of information that should become the set piece for any introductory study of capitalist economics. It’s so rich it’s hard to figure out what to say. It’s a good way to start deflating the myth of capitalist innovation and the market.

The hybrid car is still not common a hundred years after it was patented because there was so little profit it. It didn’t matter if it was or was not a good idea, a practical idea, or even an ingenious idea, or a visionary idea. The market takes up the innovation only money can be made.

The market doesn’t drive innovation, it drives profitable innovation. That’s why the idea that the market can fix the energy problem, to cite only one example, is so misleading. As the president makes clear, the government has to push and nudge and often shove the market to make it move in any reasonable direction.

The Bloom’s Already Off the Rose

Despite rising unemployment and a cratering economy, the GOP has placed a hold on the nomination of President Obama’s choice for Secretary of Labor, the pro-worker Hilda Solis. The issue at stake is the Employee Free Choice Act, which aims to give workers a level playing field by allowing workers to choose a majority sign-up approach, dubbed “card check” by anti-union flacks, for selecting a union — rather than keeping that option in the hands of employers.

But the original Wagner Act in the 1930s gave workers the right to use a majority sign-up process if they so choose, rather than the current election system that allows widespread intimidation by employers.

Studies of hundreds of organizing campaigns have found that a fifth of all pro-union activists are fired during a campaign, half of all employers threaten to shut down their plant and roughly 80% of employers hire unionbusting consultants. Employers are still free under the proposed Employee Free Choice Act to hold intimidating one-on-one “sweat” sessions to legally discourage workers from joining a union. And, as I found out while going undercover to a unionbusting seminar, it’s equally legal for employers to just lie about the dire consequences facing workers if they join a union, from closed plants to somehow losing seniority and benefits. That’s the system the Employee Free Choice Act was designed to reform, by increasing penalties for corporate lawbreaking, allowing employees to choose the majority sign-up approach but still retaining the employees’ rights to hold a secret-ballot NLRB election if they want.

Art Levine, Posted January 24, 2009

The inauguration of President Obama was breathtaking, there’s no doubt about it. We’ve done something unprescedented in the developed world– elected a member of a historically oppressed minority as president. President Morales, of course, who’s Indian, was elected a few years ago in Bolivia. Still, this is one of those turning points that happen only once in a lifetime.

On the other hand, unlike President Morales, President Obama may not be fully what at least some expected. He’s begun the process of shutting down the base at Guantanamo, for example, and the so-called secret CIA bases, but he wants the military to use an interrogation standard that may be just as bad as the old policy, which endorsed torture. His economic team, too, includes people who’ve demonstrated a freakish love of the market.

And Noam Chomsky, among others, can’t see much difference yet between Obama’s position and the Bush position in Gaza. All this seems very healthy to me. As Naomi Klein says, “free your base, and the rest will follow.” That’s why we need the Employee Free Choice Act. But we should give credit where credit is due– the Bush family planning policy had to end– but if progressive people don’t push back, nothing good will come of all of this.

Vet the Maverick for his Bipartisan Views about Socialism

With politics and the economy foremost on the minds of many, it is no wonder that bailout—a word ubiquitously featured in discussions of the presidency and fiscal policy—took home honors as Merriam-Webster’s Word of the Year for 2008.

Bailout, defined in Merriam-Webster’s Collegiate® Dictionary, Eleventh Edition as “a rescue from financial distress,” received the highest intensity of lookups on Merriam-Webster Online over the shortest period of time. As evident from the 2008 Word of the Year contenders list below, the presidential campaign and financial issues factored heavily in the concerns of our online visitors throughout the year.

Traffic to Merriam-Webster Online now exceeds 125 million individual page views per month. This corresponds to approximately ten lookup requests in the Merriam-Webster Online Dictionary or Thesaurus per second. During peak hours, this may increase to more than 100 requests per second.

Merriam-Webster’s #1 Word of the Year for 2008

I don’t think I need to say more…

A Holiday Gift for the Rest of Us

After Obama picked many centrist, conventional Democrats—and even Republicans—to his Cabinet, his choice for labor secretary is refreshing. Hilda Solis is a progressive with a will to fight and to work with grassroots labor, environmental and immigrant worker movements.

Labor leaders across the board applauded the appointment of Solis, who serves on the board of American Rights at Work, a labor-founded but more broadly based advocacy group. Her ties to labor are deep, going back to at least her state senate days, when she also became a crusader for environmental justice.

In These Times, David Moberg, December 18, 2008

I keep thinking about all of these claims and counter claims about Obama’s cabinet and administrative choices and what they signal for the future of progressive politics. A lot of this speculation seems all tangled up in the identity and cultural politics that, for good or ill, Obama seems determined to muddle up.

Most of what eventually happens will depend very much on Obama’s ability to convince a group of very differently minded people to work together. The open question, of course, is to what end. I think progressives ought to skip these debates altogether. It’s all media hype anyway.

Instead, I think we need to focus on a few specific changes that have the greatest potential for a multiplier effect. That’s why Hilda Solis seems like a real holiday gift. I think the Employee Free Choice act, which Solis surely supports, is out best bet to create a powerful movement that isn’t dependent on Obama.

I would love to see the numbers of people without health care reduced to a few million; I want true national heath care even more. I think a green economic program is great; even better would a rebirth of railroads. If Obama manages the first, and we have a stronger labor movement, we can get the second too.