When Capitalism Becomes Tyranny, with Sohrab Ahmari
Nov 2, 2023
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Author Sohrab Ahmari discusses his book 'Tyranny Inc.' which explores the concentration of economic power and its impact on personal freedoms. The conversation touches on neoliberalism, the neglect of power in neoclassical economics, the exploitation of bankruptcy laws, and the struggle with compromise in American society.
The concentration of economic power in a few corporations has led to a new form of tyranny in America, highlighting the overlooked power dynamics and coercive nature of the market system.
Bankruptcy processes favor large debtors, shielding them from accountability while working against consumers, workers, and smaller actors, revealing the need for regulations to address private coercion.
Deep dives
Critique of Neoliberalism
The podcast delves into the critique of neoliberalism, which emphasizes the use of market mechanisms to solve societal problems. It discusses how neoliberalism has been under attack from both the left and the right, with the right-wing criticisms being more surprising. The episode explores the book by Sirab Amary, "Tellinique Inc.", which highlights the commonly overlooked power dynamics and coercive aspects of the market system. The book's argument resonates with the speaker, as it challenges the neoclassical economic view that ignores power dynamics and the coercive nature of markets.
Bankruptcy and Private Coercion
The episode examines the perversion of bankruptcy rules, particularly in favor of large corporate debtors. It cites the example of Purdue Pharma's bankruptcy process, which allowed the Sackler family to shield their assets despite being responsible for the opioid crisis. The discussion emphasizes how bankruptcy processes favor large debtors and work against consumers, workers, and smaller actors. It also highlights the role of state intervention in creating the market order and the need for regulations to address private coercion.
Arbitration System and Decline of Workers' Power
The podcast explores the effects of the expansion of arbitration clauses in employment contracts, which have become common in non-union firms. It recounts a Supreme Court case involving Ernst & Young, where an employee was forced into costly arbitration, undermining their ability to pursue fair compensation. The episode exposes the detrimental impact of arbitration on workers' rights and the erosion of their power. It also discusses the historical decline of labor unions and the role of government policies in hindering unionization.
Toward a Socially Managed Market
The episode advocates for a socially managed market approach, rejecting the notion of tearing down the entire economic system. It emphasizes the need for state intervention to address market failures and disparities in bargaining power. The speaker suggests reforms such as higher minimum wages, universal healthcare, and a focus on empowering workers through stronger labor rights. The episode promotes a middle ground approach that seeks compromise and cooperation between left and right-leaning voices.
In his new book, Sohrab Ahmari argues that the concentration of economic power in the hands of a few corporations has created a new form of tyranny in America. "Coercion is far more widespread in supposedly noncoercive societies than we would like to think—provided we pay attention to private power and admit the possibility of private coercion," he writes.
Ahmari, founder and editor of Compact magazine, joins Bethany and Luigi to discuss his book, "Tyranny Inc.: How Private Power Crushed American Liberty--and What to Do About It." In this episode, they discuss the complex relationship between capitalism, personal freedoms, and political power. The conversation sheds light on what classical liberalism ignores, how today's Right is discovering what the Left may have forgotten, and ultimately, where today's political Left and Right may be able to work together.
Show Notes: Also check out two previous episodes mentioned in this conversation: