We First, by Simon Mainwaring: a review

 

There's a lot to like about Simon Mainwaring's We First. This former advertising executive pulls no punches. He tells his former clients that the way they do business has got to go.

Capitalism, Mainwaring points out, is flawed as a system. It leads to class rule, booms, bubbles, and busts. It promotes selfishness and greed. It sacrifices workers and their families and despoils the environment in a short-sighted grab for immediate profit. Capitalism is not sustainable, neither economically, environmentally, or ethically.

I agree with all of this, and I believe that if every reform Mainwaring proposed were put into practice, we would all be better off. Yet I finish the book profoundly dissatisfied.

This book proposes that:

1. By changing their mentality, corporate capitalists will be able to make "purpose" as important as profit.
2. If they won't change on their own, social media-savvy consumers will be able to compel them.
3. The changes they make will create the world we want to live in (and avoid the hell we're headed toward).

But none of these is true.

1. The profit motive is not a matter of mentality. It is the engine of capitalism. Yes, it may just be possible for global corporations to swear off some of the pollution and exploitation that has given them such extraordinary profits in the last thirty years--and it would be a good thing if they did. Always, though, they will feel the pressure to grow or die. Inexorably, they will be forced to push products at the expense of people and the planet. Only a countervailing pressure will force them to put "we first."

2. Consumers on social media can embarrass corporations. We can cost them money by ruining their reputation and reducing their sales. And we should. But this is not enough to compel real change. Mainwaring himself cites the danger of "greenwashing": businesses adopting feel-good policies that don't ultimately change their environmental impact (or simply donating to good causes to buy themselves a better reputation). Corporate PR has kept many the company profitable despite its terrible labor practices. Consumers can add to, but not replace, government regulation, social activism, and labor unions. (Mainwaring never mentions unions. It is a telling silence.)

3. Even if corporations make huge changes in the direction that Mainwaring calls for--and it would be a good thing if they did--they would still be in charge. That means they'd make those changes on the schedule and in the way they find best--not what's best for the rest of us. It's not just corporate greed that's unsustainable. It's corporate power as well.

I give credit to the author for recognizing that capitalism is the problem. I fault him for his naivete in thinking capitalism can be the solution.

Happy Days Are Here Again?

At 55, I watch the stock market more than I used to.  Oh, not its daily ups and downs, which are like my cats chasing each other around the house: something spooks them and off they go.  But I have a graph in the back of my mind. I'm aware that my hopes of a retirement with Rona partly depend on the value of our retirement accounts.  When the line is going down, as it did in the Great Recession, we have to exercise patience.  When it's going up, we get to wonder how two children of working-class parents can grow up to be secure, even at a modest level.

That's why I take personally the question that James Surowiecki raised in a recent article in The New Yorker: "Boom or Bubble?"  The stock market has been going up, even though employment, housing, and income equality have lagged behind.  Is this really sustainable? 

The answer I get from reading the article is: unfortunately, yes.

The value of stock is based on the triumph of corporate power.  The last time what we now call "the 99%" could consistently force the wealthy to share the wealth we all created was when I was a teenager.  Since then:

• Corporate tax rates have fallen dramatically (and so have the rates that rich people pay as individuals).  
• Corporations have gone global. A study of "American" corporations that Surowiecki cites found "they got forty-six per cent of their earnings from abroad."
• Partly as a result, corporations have broken the power of unions and forced wages down.  (Retirement benefits, too.  If we had pensions instead of 401ks and IRAs, stocks would be lower, and we wouldn't care.)

And one more thing that Surowiecki doesn't mention but his colleague Elizabeth Kolbert makes clear: raping the planet is good for profits.  If the companies that our financial advisor has invested us in were to pay the full environmental cost of just the energy they use, then they--and we--would have far fewer dollars in our accounts.  But that is just what I would like to see.

I would like to see fewer new products and more days when the air is clear.  I would like to see lower profits and more social benefits.  We and the vast majority of other Americans would lead happier lives if corporate taxes went up instead of the stock market--and we used that tax money to pay for universal health care and a more generous retirement benefit for all.  No boom, no bubble, just lives of useful work and pleasurable leisure with friends, followed by an old age not hampered by concerns about my investments, your children's future, the fate of our earth.