Supercapitalism

Many Americans have long confused the economic concepts of Capitalism with the political concepts of Democracy.  They often see them as the same thing, or a least that they are dependent upon each other (one cannot exist without the other).  This is false, of course.  Capitalism is an economic system in which control of enterprise is performed by the private sector rather than being controlled by the state or public institutions.  Democracy is a form of government in which power is held by people via a free electoral system.  There are varying subcategories of democracy.  In addition, there are varying degrees of each system practiced by states throughout the world.  Some have free elections, but provide the state with a greater degree of control over the economy, thus having, at least to some extent, a form of democratic socialism.  Other countries don't have free elections, but their economy is largely controlled by private interests rather than the government.

So why the confusion?  Education  or position don't seem to have anything to do with this erroneous perception.  We often even see senators expressing this confusion.  Republicans in particular seem to equate freedom with 'getting  the government out of our way', but only in the economic sense.  They want less regulation, less legal oversight, less government influence on economic policy in general.  At the same time, these same people advocate the government becoming closely involved with people's private lives.  They advocate strict government control over what we can read, see in movies or tv, and whom someone chooses to marry.  They often couch their arguments on 'protection of children' or some other equally specious argument as justification for government intervention.  (As if freedoms described in our legal system are predicated on palatability to children).

Although economic and political systems are distinct, they obviously have a great deal of influence on each other.  And yes, democracies tend to be more free in the capitalist/economic sense.  As we are seeing, however, systems can evolve where one threatens the other.  In his book Supercapitalism, Robert Reich provides a cogent account of how and why this is happening today, not just in America, but around the world.  I recommend this book highly.  It doesn't just identify the problems, but describes a plan for promoting rich and vibrant capitalism along with a rich and vibrant democracy.  

In a nutshell, Reich dispels the notion that corporations have the rights of citizens.  He argues we must stop treating corporations as if they were individual people.  Stop taxing corporations and only tax the owners (shareholders).  Stop expecting corporations to be patriotic or socially responsible.  This isn't what corporations are designed to do.  Don't hold corporations responsible for criminal conduct, only people within them.  

Only people can be citizens and have the rights of citizen (as well as the responsibilities).  Only citizens should be allowed to participate in democratic governmental decision making.