Returning to the roots of capitalism

Returning to the roots of capitalism
 
Date June 17, 2004
Section(s) Opinion
   
 
To the Editor:

What an amazing week. Tributes to Ronald Reagan all week about his unyielding optimism of the American people. At the same time, more Enron tapes are released of capitalists who literally set out to ruin California financially. What a striking difference between vision and reality.

So, too, is there a striking difference between the vision of Reaganomics and the reality of Reaganomics. Reaganomics is the return to capitalism without taxation and regulation, a theory the Republicans tirelessly promote as having no downside.

History is not kind to this type of unadulterated capitalism. This nation suffered a depression roughly every 20 years under this version until FDR got creative and stabilized the flow of money. Today, Republicans delight in denying the positive effects of FDR and continue to promote unadulterated capitalism.

The vision — money trickles down to everybody. The reality — money flooded to the few in tremendous amounts. This, and the lack of other restrictions, brings Maytag to this point in time.

The tremendous wealth that should flow through the communities of Newton, Iowa, and the other manufacturing towns is now horded with no place to go but to shelters, investments and to instant financial rewards.

The situation now is that Maytag needs to use the profit dollar as bait to get the ever-growing investment dollar. It’s not whether Maytag makes a profit. It does. It’s whether Maytag‘s bottom line is bigger than its competitors. Maytag‘s competitors have $2 an hour wages with no benefits. To compete for that ever-necessary investment dollar, it is in the best interest of Maytag to also have $2 an hour wages with no benefits.

The capitalism’s vision — everyone can get rich. The reality — a fat bottom line at the expense of the employees. History truly does repeat itself. Capitalism started with slave wages. Some companies have already gotten back to the start.

Stuart Allspach

Baxter

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