Opinion: Get rid of corporatocracy
Growing wealth inequality calls for governments to rethink approaches to development that are biased towards the ‘superyacht’ classes.
Publish Date – 12:45 AM Fri – 27 Jan 23
By Samudrala VK
Hyderabad: The recent Oxfam International report on economic inequality has not only highlighted the dire condition of the poor around the world but also the evils of the global capitalist economy. However, this is not the first time that Oxfam has explored such contradictions in modern times. economyThe wording and appeal it has made to governments around the world sets it apart from the earlier ones. As per the statements and details given in the report, it is clear that income inequality is not biological in nature but created by the classes that have access to power. The title of the report ‘Survival of the Richest’ justifies the sad reality of the global economy.
Unilateral taxation policies, uneven development plans and inequality of opportunities are leading the world economy towards collapse. Since the beginning of human civilization, humanity has not yet come to the scale of inequalities. Before discussing the measures that governments around the world are adopting to reduce the income gap, let us look at the prevalent policies and practices that are exacerbating the issue of inequality. Although inequality has many aspects like economic, social, political, cultural and technological, but it is wealth i.e. economic inequality on which others depend.
tax magic
Taxation is an economic instrument that remains in the hands of political authority to redistribute wealth and limit income differences in society. An ideal state would tax the rich more and benefit those at the bottom of the social ladder. However, with the advent of the neo-capitalist state, the mechanism of taxation has been changed to benefit the privileged classes.
The neo-capitalist empire is spreading a false narrative on taxation to sidestep the redistributive obligation. Under the symbol of the ‘trickle-down’ effect, it is forcing the state to cut tax rates on profits made by the corporate class and reduce losses by increasing indirect taxes on the poor. It views state intervention in economics in a negative light. Yet, it uses the same situation to its advantage. It is this ability to mask its true character that fools the neo-capitalist state. The conservatism and shrewdness of the corporate classes prevent both intellectuals and hoi-polloi from getting a clear idea of the neo-capitalist ideology and the way it operates.
Whereas incorporated The respectable and affluent classes are climbing the wealth pyramid at jet speed, while the hand-to-mouth classes are struggling at its bottom due to conditions of stagnation and unequal distribution of resources, providing opportunities. Clearly, the current income or wealth gap between the working class and corporates is wider than it was between master-slaves in ancient times and feudal-serfs during the medieval era.
Non-intervention of the state is considered a pre-requisite for development in the neo-capitalist environment. Progress and development are seen only from the economic point of view. It is said that wealth percolates down to the bottom rungs of the society when the state ensures a hassle-free ecosystem to the capitalist economic cycle. However, the innate irony in the global capitalist economy makes it highly vulnerable to shocks and downturns. On the one hand, the corporates try to make profits by keeping the life of the working class at a subsistence level, and on the other, they force the same working class to pay a higher price for the goods and services they provide. Recession is seen as a temporary setback. In fact, they are used as an excuse by the corporate class to absolve the state from its main objective of providing welfare.
Ironically, at a time when Western countries are steering their economies towards welfare, the developing world, home to two-thirds of humanity, is adopting an economic model that was tried, tested and failed in the capitalist world . Economic saturation, rising social capital and backlash by the working class in the western world against austerity measures are forcing corporates to implement their nefarious designs in the eastern part of the world.
welfare vs development
Nothing is as controversial as the ‘welfare versus development’ debate in modern-day politics. It is absurd to reach any conclusion that one outweighs the other. In fact, they are inseparable. It is the neo-capitalist propaganda that has created the welfare-development divide with the aim of making profits. It is worth mentioning here that welfare is an integral part of development and vice versa.
The neo-capitalist development model is based on the exploitation of natural and human resources. Climate change is the result of ruthless economic policies adopted by the exploiting class. It is clear that it is the poor who bear the brunt of ecological disasters. Devastation in the guise of development has become the new normal. Mass displacement, habitat loss, cultural degradation and generational poverty are the byproducts of new age development projects. The state, instead of acting as the ‘custodian of all’, has become a channel through which corporates can increase their profits. Democracy has transformed into corporatism. Surplus production at the cost of nature, reduction in demand due to unsustainability and debt trap to meet basic needs have become the order of the day. Assets that took decades for governments to build up are transferred to private hands. Buzzwords like managerial efficiency and optimum utilization are being used in the name of transfer of ownership.
Neo-capitalism gives direction to the public’s attack against the inequalities towards the state. It uses the state as a shield to protect itself from attack. Moreover, it subverts the state and forces it to depend on corporates for its existence. In the neo-capitalist polity, it is not the state that decides the fate of corporates, but the opposite.
The ongoing recession calls for a strong commitment from civil society to revive the welfare state that disappeared from the global economy during the Thatcherism years. Also, it calls upon governments to re-think the approach to development as the current approach is biased towards the ‘superyacht’ classes.
governments The world should take the current economic situation as an opportunity to address the flaws in the global economy. Redistribution of wealth and welfare measures such as housing, health and education should be high on the list.
