Robert Reich has ideas on how to save capitalism

Book reviewer Mal Warwick thinks Robert Reich’s new book is “brilliant,” and “cogently and compellingly” explains complex economic issues. But while Reich is funny in person, ‘Saving Capitalism’ doesn’t contain a lot of humor, says Warwick. He still gives it five out of five stars.

☆☆☆☆☆ (five out of five)

If you’ve ever been exposed to Robert Reich’s “Wealth and Poverty” course at UC Berkeley, perhaps through the film Inequality for All, or heard him speak in public, you know that there are few people alive today who are his equal in the ability to explain complex economic and social issues so cogently and compellingly. And few indeed are as funny as he is, either: the man could make a go of a career with a standup act.

However, there’s not a lot of humor in Saving Capitalism, Reich’s fifteenth book. In this brilliant long essay, the former U.S. Secretary of Labor takes on the economic issues of the day from a perspective that rarely comes to light in public discourse: he rejects the widespread assumption that a “free market” exists independent of government.


reich
“A market — any market — requires that government make and enforce the rules of the game,” Reich writes. The size of government, the preoccupation of the American Right for the past four decades, is a distraction from the reality that big corporations and the country’s wealthiest people have steadily rigged the rules that structure the economy — through lobbying, massive political contributions, and the courts. Society’s biggest challenge today, inequality in wealth and income, was the inevitable result of the steady shift of power to the “1%” from the rest of us, as Occupy Wall Street so famously pointed out. “The critical debate for the future is not about the size of government,” Reich adds; “it is about whom government is for.” This is a view of American society from 30,000 feet.

Reich cites a study by two scholars who set out to gauge “the relative influence . . . of economic elites, business groups, mass-based interest groups, and average citizens.” The study concluded, “The preferences of the average American appear to have only a minuscule, near-zero, statistically non-significant impact upon public policy.” In other words, everything you ever feared about the influence of the 1% is true.

As Reich explains in a particularly enlightening chapter, “The Decline of Countervailing Power,” the principal reason why Wall Street, the corporations, and the superrich have managed to enrich themselves at the expense of the middle class and the working poor is that the counterweight to what we call the 1% today has steadily withered away since the 1970s. Reich refers to the “interest groups and membership organizations — clubs, associations, political parties, and trade unions — to which politicians were [once] responsive.”

Continue reading the review on Mal Warwick’s Blog on Books. 

Get the latest Berkeley news in your inbox with Berkeleyside’s free Daily Briefing. And make sure to bookmark Berkeleyside’s pages on Facebook and Twitter. You don’t need an account on those sites to view important information.