Chapter 4
The chapter starts by discussing and analyzing the aspects of socialism and capitalism. The author observes that a capitalist system permits a lot of freedom; it is dynamic in nature and also effective. Nonetheless, this type of system is characterized by several challenges: political and economic woes, pollution, and lack of gainful employment (Schweickart 87). Also, the act of democracy does not seem to have any place in such a system since individuals who are wealthy take over the control of every process.
When the possession and management of firms are left to laborers, myriads of gains can be realized. For example, no interest is earned in streamlining labor since it is not a defining factor in the process of production. Besides, new competencies and technologies are beneficial to a firm. Productivity is revamped when a business enterprise can access some of the production factors mentioned above (Schweickart 89).
In any case, workers can reduce working hours instead of being released from their duties permanently. The passion for expanding business activities is not readily possible, bearing in mind that when additional workers are injected into the workforce, their earnings do not change significantly. Furthermore, firms find it cumbersome to pursue optional sources of affordable or inexpensive labor because they are compelled to maintain social ties while executing their duties.
In contrast, business organizations that run their activities under the confines of economic democracy are often small in size and, of course, poorly established compared to capitalistic enterprises. Such enterprises are equally not passionate enough to improve their volumes of operations. In other words, they do not actively compete in the marketplace. Lack of long term strategic plan to operate on large volumes also forces such business organizations to run their activities along one production line.
Chapter 5
According to Schweickart, surplus production in a business enterprise cannot be equated to an accident (126). Nevertheless, the author is emphatic that a ‘bust’ in production may not necessarily be preceded by a period of ‘boom’ in regards to production. In some cases, sustained growth in firms might not be real at all owing to what the author refers to as ‘dubious’ wealth. This expounds why the working class revenue has never improved for the last 30-40 years.
This has been aggravated by the ever-rising national debt that lowers the value of the local currency. This type of economic derailment has been necessitated by capitalists. As a matter of fact, the economic burden being experienced currently has its roots in unjustified systems.
From the outset, capitalistic systems often seek ways to blend well and sway the objectives of t both individuals and governments. For instance, hegemonic power is controlled by the elites in society. Although democracy exists, it does not have the much-needed power to influence change. The author reiterates that those who are economically well-off are indeed the minorities in society and that they often interfere with the natural tenets and benefits of democracy. The latter is a reality even when the voting population is educated and independent-minded.
Moreover, the overall societal democracy can be improved by economic democracy when a number of initiatives are put in place. First, workplace democracy must be given the first priority. This should go along with market democracy since inequality is rife in most markets. Second, investment decisions should be formulated and executed without delay. Finally, devolution of resources to the lower levels can indeed lower the economic gap being experienced at the moment.
Chapter 6
This chapter begins by highlighting the benefits and inherent aspects of Keynesian liberalism. The author refers to the unmet expectations as traps and dead ends. Keynesian theory is similar to social democracy since capitalism often leverages on export trade that is manipulated by state players. Other aspects of social democracy are the bureaucratic market and socialism.
Modern neo-liberalism has been associated with a complete lack of growth that has impeded economic development for a long time. The state-centric-export model failed to yield the expected outcomes when it was applied in some Asian countries. The Asian low wage was the main cause of his failure (Schweickart 165). In yet another dimension, the same capitalistic system was known as Comprador capitalism. Although it was implemented in Japan, it equally failed to succeed owing to the poor economic performance that prevailed during that time. Governments that were non-Marxist largely adopted National Socialisms due to the perceived benefits. However, the troubled economic times did not permit the growth and development of National Socialisms.
The state also attempted to control private capital even though the attempt never succeeded. Consequently, it was forced to resort to the earlier compradors model. Besides, the central plan model was overwhelmed by the task of satisfying consumer needs. These failures explain the reason why democratization of processes was eventually adopted across the board. Some of the processes that were democratized include labor, capital, and the actual political democracy.
Works Cited
Schweickart, David. After Capitalism. Oxford: Rowman & Littlefield Publishers, Inc., 2002. Print.