Julius Grey: Edifice of Capitalism actually a House of Cards (ok, bonds)
On April 15 2009, Citizens in Action, a Montreal citizens group devoted to economic and social justice, welcomed Julius Grey as its speaker at Concordia University's hall building. The theme of the evening was “Failure of the Neo-Liberal Agenda”. Those present were treated to an enlightening and stimulating presentation from the witty and totally unpretentious Mr. Grey, a Canadian lawyer and professor, and one of Canada's leading socialist and minority rights advocates.
The myths of Capitalism
Julius Grey opened his speech with a wry observation. As he told the audience, the good news is that Capitalism is a phenomenal success—The bad news is, Capitalism's success is only in terms of propaganda! Capitalism has failed. America has been brainwashed.
The “trickle-down” myth
Grey explained how the media have bought into and propagated the Capitalist myth of a market economy in which never-ending growth is possible and desireable, where an elite few corporate moguls become fabulously weathy, and this wealth inevitably trickles down to the masses. Even faced with the current global economic meltdown, the media have held tenaciously to the rationalization that it was not the Capitalist system that was the problem, it was individual Greed. However, this argument crumbles under semantic scrutiny: In a very real way, Capitalism is Greed, the fact that it is predicated on greed is its appeal. Grey pointed out that another base quality associated with Capitalism is cruelty—in a society where the Market is all-important, “dog-eat-dog” attitudes prevail. Wars are commonplace, all human interactions assume an outcome with winners and losers, with no room for compromise.
Grey brought home the notion that “Ethical Capitalism” (like its pals “responsible government” and “military intelligence” perhaps) is an oxymoron. North Americans have been sold a bill of goods. Capitalism is no more than a well-marketed pyramid scheme, doomed to failure. He also pointed out how Capitalism fosters a short-run mentality, in which governments eschew vision and long-term planning because they operate within a system that, like an alluring get-rich-quick scheme, appeals to our inherent laziness and irresponsibility. He pointed out that “municipal government is a cesspool.” The government in power, faced with a four year mandate, acts with the knowledge that if a project fails in the long term, either (1) they will be re-elected before the public finds out, or (2) a future government could be left holding the bag.
Canada is a totalitarian democracy
Grey stated unequivocably that Canada is an totalitarian democracy—that is, a government where the wealthy rule. He stated that the “Bourgeoisie” (Capitalist middle class), who believe themselves to be free, are in fact deluded, like the characters in a Dickens novel (Grey makes frequent allusion to various novels and novellists).
The sacred cow of hard work
According to Grey, the North American work ethic is one of the sacred cows of Capitalism, and it must be challenged.The Bourgeoisie, like the working class, are prisioners of the economic seas in which we swim, their allegance to the work ethic in pursuit of money depriving them of the pleasures of genuine human relationships, culture and quality of life by a fixation on money. If you have an extremely wealthy elite there can be no democracy, Grey averred. He gave as an example Conrad Black, the media baron convicted in 2007 of the misappropriation of millions of dollars from the newspaper empire he once headed.
Obstacles to democracy
Grey feels that Canada's resolute right-of-center, Capitalist system of governance is an obstacle to true democracy.
The myth of the Center-Left in Canada
Grey pointed out that neither of Canada's dominant political parties, the Liberals and the Conservatives, is in fact a left-of-center party. While the Liberals might be perceived as such by some Canadians, Grey feels they are mistaken. He points to the demise of the Quebec ADQ as proof of this, stating that the ADQ failed but because the political system is already saturated with Conservative parties.
Grey also feels that Canadian society shuts out people that are left-of-center, even going so far as to say, “You can't really get a job if you are on the left”. He pointed out that people believe in the system, which only serves to perpetuate the problem. Grey made reference to two books that deal with this phenomenon, The Financier, by Theodore Dreiser (the story of the rise and fall of a financial tycoon, set in the Civil war era), and Globalia, by Jean-Christophe Rufin, a work of fiction which continues the Orwellian theme of 1984.
Grey's solution—social democracy
Grey feels that Social democracy, conceived in the 19th century as a benign alternative to the revolutionary ire of Marx and Engels, is the solution to the woes of Capitalism.
He hypothesized that in the present system, people are afraid to challenge the sacred cows of Capitalism—the work ethic being one example, our condemnation of the Castro regime in Cuba another. That would have to change. Some of his other suggestions follow.
Reduce gap between rich and poor
If the Bourgeoisie work less in reaction to Capitalism, nothing will improve; the wealthy elite will continue their merry way, and society as a whole, deprived of cash from the middle class, will falter. However, if the government centralises power and introduces programs that reduce the gap between rich and poor, things will improve.
Reform our legal system
Grey pointed to the explosion of criminal sentences in North America as a major symptom of the malaise of our Capitalist society. He pointed out that Americans are incarcerated five to six times as frequently as citizens of other countries, even those countries whose governments are corrupt. He added that 25% of all prisoners in the world are located in the US. Grey sees crimnal law as a form of governmental control. He pointed out that very frequently, lawyers convince their clients—even those clients who maintain their innocence—to plead guilty in order to receive a lighter sentence. The result is that our prisons house many innocent people.
Grey also pointed out that once freed, those with a criminal record cannot turn their lives around, because the penal system ensures that their record will never by expunged. Legal reforms, in which criminals are forgiven and their record expunged once they have done time, are needed.
Eschew consumerism
Grey has an interesting take on how to build a less consumerist society. He advocates culture as a substitute for consumption—for example, a couple in Grey's reformed society, rather than going out and buying a new car which they don't need and which entails a massive strain on Earth's resources, would instead opt for season tickets to the opera—a choice which makes a zero constribution to climate change, while contributing substantially to the cultural edification of the couple in question.
Another interesting proposition along the same lines was to prioritise education. In Grey's version of social democracy, citizens would devote at least one day per week to becoming better educated.
Make salaries equal
Grey firmly states that egalitarian theories must be matched by equal salaries. He warned the audience to beware the false equality of neo-liberalism.
Keep lobbyists in check
According to Grey, the left has traditionally catered, a behavior Grey finds “suicidal”. Lobbyists must be kept in check since the corporate rich will always have the ability to control the media and therefore lobbyists are detrimental to society as a whole.
Ditch multiculturalism
Ethnicity is a form of conformity. Instead, suggests Grey, replace multiculturalism with a system that values individual eccentricities.
Re-open the Eastern European experiment
The Eastern European experiment was the attempt of Eurpean countries to re-invent Capitalism after the fall of Communism, making it more compassionate, more egalitrian, more human. Grey suggested that “think tanks” should be instated to come up with some creative alternatives that find some middle ground between the extremes of Capitalism and Communism.
Conclusion
Once Grey had finished his discourse, the floor was opened to discussion. Participants had many suggestions of their own to add to Grey's proposals for reform, proof that they had gotten the message: Yes, the Capitalist system is in itself flawed, but it will continue only as long as we buy into it (pun intended). The solution is to educate our society, and dare to challenge the sacred cows and myths of Capitalism, which will in turn open the floodgates to reforms. And on April 15, for this small group of people gathered in a Concordia classroom at least, this process was initiated.
For information on upcoming Citizens in Action events, see http://citizensinactionmontreal.org/m_1.asp
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