9 Noam Chomsky Quotes on Economy

Noam Chomsky quotes on economy

2. The consistent anarchist, then, should be a socialist, but a socialist of a particular sort. He will not only oppose alienated and specialized labor and look forward to the appropriation of capital by the whole body of workers, but he will also insist that this appropriation be direct, not exercised by some elite force acting in the name of the proletariat.

14. The United States is deeply in debt -- that was part of the whole Reagan/Bush program, in fact: to put the country so deeply in debt that there would be virtually no way for the government to pursue programs of social spending anymore. And what 'being in debt' really means is that the Treasury Department has sold a ton of securities -- bonds and notes and so on -- to investors, who then trade them back and forth on the bond market. Well, according to the Wall Street Journal, by now about $150 billion a day worth of U.S. Treasury securities alone is traded this way. The article then explained what this means: it means that if the investing community which holds those securities doesn't like any U.S. government policies, it can very quickly sell off just a tiny signal amount of Treasury bonds, and that will have the automatic effect of raising the interest rate, which then will have the further automatic effect of increasing the deficit. Okay, this article calculated that if such a 'signal' sufficed to raise the interest rate by 1 percent, it would add $20 billion to the deficit overnight -- meaning if Clinton (say in someone's dream) proposed a $20 billion social spending program, the international investing community could effectively turn it into a $40 billion program instantly, just by a signal, and any further moves in that direction would be totally cut off.

15. ...so long as power remains privately concentrated, everybody, everybody, has to be committed to one overriding goal: and that's to make sure that the rich folk are happy -- because unless they are, nobody else is going to get anything. So if you're a homeless person sleeping in the streets of Manhattan, let's say, your first concern must be that the guys in the mansions are happy -- because if they're happy, then they'll invest, and the economy will work, and things will function, and then maybe something will trickle down to you somewhere along the line. But if they're not happy, everything's going to grind to a halt, and you're not even going to get anything trickling down.

28. I should say that when people talk about capitalism it's a bit of a joke. There's no such thing. No country, no business class, has ever been willing to subject itself to the free market, free market discipline. Free markets are for others. Like, the Third World is the Third World because they had free markets rammed down their throat. Meanwhile, the enlightened states, England, the United States, others, resorted to massive state intervention to protect private power, and still do. That's right up to the present. I mean, the Reagan administration for example was the most protectionist in post-war American history. Virtually the entire dynamic economy in the United States is based crucially on state initiative and intervention: computers, the internet, telecommunication, automation, pharmaceutical, you just name it. Run through it, and you find massive ripoffs of the public, meaning, a system in which under one guise or another the public pays the costs and takes the risks, and profit is privatized. That's very remote from a free market. Free market is like what India had to suffer for a couple hundred years, and most of the rest of the Third World.

29. Remember, every business firm, like even a mom and pop grocery store, is a market imperfection. A firm is defined in economic theory as a market imperfection introduced to deal with transaction costs. And the sort of theory is that the imperfections, the firms, are kinda like little islands in a free market sea. But the problem with that is that the sea doesn't remotely resemble a free market, and the islands are bigger than the sea; so that raises some questions about the picture. But these market imperfections, like a firm, or a transnational corporation, or a strategic alliance among them, this is a form of administering interchanges. And there's a real question about whether we want to accept that. Why, for example, should the international socioeconomic system, or for that matter our own society, be in the hands of unaccountable private tyrannies? That's a decision, it's not a law of nature.

49. ...Board of Directors have to make certain kinds of decisions, and those decisions are pretty narrowly constrained. They have to be committed to increasing profit share and market share. That means they're going to be forced to try to limit wages, to limit quality, to use advertising in a way that sells goods even if the product is lousy. Who tells them to do this? Nobody. But if they stopped doing it, they'd be out of business. Similarly, if an editorial writer for the New York Times were to start, say, telling the truth about the Panama invasion -- which is almost inconceivable, because to become an editorial writer you'd already have gone through a filtering process which would weed out the non-conformists -- well, the first thing that would happen is you'd start getting a lot of angry phone calls from investors, owners, and other sectors of power. That would probably suffice. If it didn't, you'd simply see the stock start falling. And if they continued with it systematically, the New York Times would be replaced by some other organ. After all, what is the New York Times? It's just a corporation. If investors and advertisers don't want to support it, and the government doesn't want to give it the special privileges and advantages that make it a 'newspaper of record,' it's out of business.

57. Reform is a word you always ought to watch out for. Like, when Mao started the Cultural Revolution it wasn't called a reform; reform is a change that you're supposed to like. So as soon as you hear the word reform you can reach for your wallet and see who's lifting it. [...] Subsidy is another interesting word, kinda like reform. It's a subsidy if public funds are used for public purposes, that's called a subsidy. It's not called a subsidy when it goes to private wealth, that's reform or something.

133. For example, take Suharto's Indonesia, which is a brutal, murderous state. I think Canada was supporting it all the way through, because it was making money out of the situation. And we can go around the world. Canada strongly supported the US invasion of South Vietnam, the whole of Indochina. In fact Canada became the per capita largest war exporter, trying to make as much money as it could from the murder of people in Indochina. In fact, I'd suggest that you look back at the comment by a well known and respected Canadian diplomat, I think his name was John Hughes, some years ago, who defined what he called the Canadian idea, namely 'we uphold our principles but we find a way around them'. Well, that's pretty accurate. And Canada is not unique in this respect, maybe a little more hypocritical.

136. China is the center of the Asian energy security grid, which includes the Central Asian states and Russia. India is also hovering around the edge, South Korea is involved, and Iran is an associate member of some kind. If the Middle East oil resources around the Gulf, which are the main ones in the world, if they link up to the Asian grid, the United States is really a second-rate power. A lot is at stake in not withdrawing from Iraq.