Chapter 2 Capitalism 3.0 : A Short History of CapitalismDecline of the Commons:Quest for BalanceEnclosure: The transformation that launched the Modern Era (of Disinheritance)America & our relationship to The Commons:Ascent of the Corporations: Rise of the publicly traded stock companySlide 7From Shortage to Surplus CapitalismScarcity: A class by itself Asphalt over Topsoil3 Pathologies of Capitalism:Chapter 2 Chapter 2 Capitalism 3.0 :Capitalism 3.0 :A Short History of A Short History of CapitalismCapitalismThe Decline of the The Decline of the Commons & the Ascent of Commons & the Ascent of Private CorporationsPrivate CorporationsDecline of the Commons:Decline of the Commons:Approx. 10,000 years ago: Rise of human agriculture Approx. 10,000 years ago: Rise of human agriculture and permanent settlements led to private property. and permanent settlements led to private property. Titles were created and often passed to heirs – Titles were created and often passed to heirs – typically oldest son. typically oldest son. In Europe, codified many of these practices yet In Europe, codified many of these practices yet bodies of water, shorelines, wildlife & air were bodies of water, shorelines, wildlife & air were explicitly classified as explicitly classified as res communes, res communes, resources resources available to all. Kings and Feudal Lords often laid available to all. Kings and Feudal Lords often laid claim to the claim to the res communes, res communes, only to have such claims only to have such claims periodically rebukedperiodically rebuked. . 1215 Magna Carta – Which established forests & 1215 Magna Carta – Which established forests & fisheries as fisheries as res communes res communes was signed (under force) was signed (under force) by the King of Englandby the King of EnglandTwo Reasons in the Modern Era: Enclosure, Two Reasons in the Modern Era: Enclosure, ExternalitiesExternalitiesQuest for BalanceQuest for Balance1717thth Century John Locke looks to balance the Century John Locke looks to balance the commons and private property…one can acquire commons and private property…one can acquire property but there's a property but there's a limitlimit to how much he or she to how much he or she can rightfully appropriate (Continental Cap)can rightfully appropriate (Continental Cap)This This limit limit is set by two conditions: is set by two conditions: 1. No more than he/she can join his/her labor to1. No more than he/she can join his/her labor to 2. It has to leave “enough and as good” in 2. It has to leave “enough and as good” in common for others *common for others ** * Reflects English common law of the time (e.g. riparian landowner could Reflects English common law of the time (e.g. riparian landowner could withdraw water for own use, but couldn’t diminish the supply available to withdraw water for own use, but couldn’t diminish the supply available to others)…such beauty twas not to be…others)…such beauty twas not to be…Enclosure: Enclosure: The transformation that launched The transformation that launched the Modern Era (of Disinheritance)the Modern Era (of Disinheritance)1818thth – 19 – 19thth Century: Local gentry, backed by Parliament Century: Local gentry, backed by Parliament fences off village lands, converts them to private holdingsfences off village lands, converts them to private holdingsImpoverished peasants drift to cities, become industrial Impoverished peasants drift to cities, become industrial workersworkersLandlords invest agricultural profits in manufacturingLandlords invest agricultural profits in manufacturingThomas Paine* “two kinds of property” :Thomas Paine* “two kinds of property” : (1) natural (earth, water, air) in which all have a birthright(1) natural (earth, water, air) in which all have a birthright (2) artificial or acquired (invention of men) in which (2) artificial or acquired (invention of men) in which equality is impossible, diminishing one’s birthright seeking equality is impossible, diminishing one’s birthright seeking “indemnification for that loss” with a “national fund.”“indemnification for that loss” with a “national fund.”* Like John Locke, he believed nature was a gift of God to all* Like John Locke, he believed nature was a gift of God to allAmerica & our relationship to America & our relationship to The Commons:The Commons:Land Ordinance of 1785Land Ordinance of 1785Homestead ActHomestead ActMorrill Land Grant College ActMorrill Land Grant College ActReclamation ActReclamation Act1877 Desert Land Act1877 Desert Land Act Hundreds of square miles Hundreds of square miles removed under the Homestead Act land said to be worthless, sold removed under the Homestead Act land said to be worthless, sold for 25 cents an acre to anyone promising to irrigate it (Haggin & for 25 cents an acre to anyone promising to irrigate it (Haggin & Tevis, Kern River “Robbery”)Tevis, Kern River “Robbery”)◊◊1995 Expectorating the Spectrum 1995 Expectorating the Spectrum Congress Congress gives digital broadcast frequencies away free to the same media gives digital broadcast frequencies away free to the same media companies to whom it gave the analog spectrum free of chargecompanies to whom it gave the analog spectrum free of chargeAscent of the Corporations: Ascent of the Corporations: Rise of the publicly traded stock companyRise of the publicly traded stock company1776 Barely a handful of corporations in Britain or America1776 Barely a handful of corporations in Britain or AmericaEarly America, state legislatures retained some controlEarly America, state legislatures retained some controlBy mid-19By mid-19thth cent. Corporations could live forever, engage in cent. Corporations could live forever, engage in legal activity, merge with or acquire other corporations legal activity, merge with or acquire other corporations (Frankensteinomics) (Frankensteinomics) End of 20End of 20thth cent. Corporate power (economic and political) cent. Corporate power (economic and political) was globalwas globalTwo problems with Frankensteinomics: Two problems with Frankensteinomics: (1) It is not a real person(1) It is not a real person (2) Its growth pays no adherence, allegiance, or care to (2) Its growth pays no adherence, allegiance, or care to principles of biological growth *principles of biological
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