A book review of Supercapitalism by Robert Reich
Supercapitalism is a book written by Robert Reich. I had the opportunity to read an excerpt from it as an assignment for school. This excerpt left me with two opinions. I am a bargain shopper. I love a good bargain and will spend endless hours and even days searching for the right price on just about anything. When I shop, I look at all the circulars, or I go online to find which stores have what I need on sale and I don’t mind driving around to several stores to obtain my wares at very inexpensive prices. While as a consumer I love the option of purchasing things at a much lower price, I have noticed the growing trend of which Reich speaks.
I remember hearing about unions as a child in the 70’s, and my mother not working for periods of time because the company was on “strike.” These strikes were mandated by the Teamsters’ Union of which she was a part. The “deregulation” of which Reich mentions in his article, has affected my life as a worker and as a consumer. As a consumer, I have noticed the quality of many products diminish. They are made quickly and cheaply. This is in part due to not having commissioners standing over these large companies to see exactly what they are doing. Deregulation, in addition to globalization, per Reich, have played a role in the deterioration of quality, but he also mentions that “supercapitalism was on its way long before now.”
Reich explains that technology and the push for it forged our new supercapitalistic system. Technology he explains, has “empowered consumers and investors to get better deals.” He also claims that many inventions which emerged from the DOD and other governmental institutions contributed to the demise of these huge companies. One of the inventions that made a major contribution was the internet. We, who now take the internet for granted, control much purchasing power through its use. Containers able to hold tons of cargo were another invention forged by necessity during the Vietnam War, which also served in transporting greater amount of goods to more places in less time.
In the early eighties, I remember how expensive long distance calls were, and only having the option of Bell Atlantic as my telephone service provider. This company was part of one of the huge monopolies of AT&T. I find it amazing that now I can get long distance, internet, and satellite TV for one flat rate and that rate is even cheaper than what I paid just for telephone in the 80’s.
The down side to all this progress unfortunately, as Reich explains, is that jobs and quality have been compromised. While an American worker can make a decent wage in a particular field, the same worker in a country like China makes a significantly lower wage for the same job. Knowing this, big companies will outsource to these countries, which also affect the jobs of American workers.
Wal-Mart, the “big-box retailer,” as Reich calls it, is a phenomenon to me. It has competed with and destroyed many other companies. They have broken into so many different markets. They compete against pharmacies, supermarkets, check cashing places, money wiring companies, furniture, toys, clothes, mom and pop stores, and much more. Due to their sheer volume, they can maintain their goal of selling everything at the lowest prices. I am ashamed to admit that I am a major contributor to their profits.
Finally, we see that “the road to supercapitalism,” as Reich describes it, has had some advantages, like the power being shifted to consumers. At the same time, it has also hurt Americans by affecting many of our jobs.