Folbre Chapter 8: Corpornation

 

 

If Corporations were Perfectly Rational

·        Hire only workers of certain age, no families, no elderly, no sick, already educated and skilled. No one else allowed on island. 

“They are exploiting a natural resource without replenishing it. Their strategy is not sustainable.” (186) 

·        Folbre asks if we really have only two choices: 

1.     A patriarchal society in which women provide the care.

2.     A society in which care is only provided by the market (for money).

 

·        Immigration and Guest Labor as forms of Corpornation       

1.     Canada has a point system based on education, knowledge of French, occupations in need.

2.     U.S. & other countries bring in guest workers that have no rights, no labor protection, no benefits and cannot stay.  

(California recently denied drivers’ licenses to Mexican guest workers. This way they would find it more difficult to move between employers. U.S. firms doing business in Mexico, on the other hand, were discovered having women injected with depo-provera to avoid the maternity leave obligations that pregnant women are legally entitled to. The U.S. imports nannies to care for the children of the rich. These practices may become more routine –  the Bush Administration is moving to provide permanent identification cards for guest workers, i.e., a permanent underclass. A recent article by a UCSD scholar discusses the importance of the undocumented driver's license issue.)

 

3. Migrant & immigrant remittances back to home countries are the fastest growing income source.

  

Rules of Market System set against Caring

 

·        Mass firings are in the nation’s (system’s) welfare

   Benign terms for being fired: downsizing, release of resources, career change opportunity, involuntary separation from payroll, i.e., these are all good things.

·        Resources devoted to your family’s needs cannot be sold (lowers your income)

·        Same for nation (“families with kids are like little welfare states”)

·        Corpornation wins every race

 

Two responses to footloose capital:  Jihad vs McWorld 

·        Conservative fundamentalists à a. trade barriers b. immigration barriers c. women back to homemaking

·        Free market ideologists à every person for himself. An “unobstructed set of exchange relationships.”

 

Folbre’s Response: 

·        “If collective welfare is a responsibility in a family, it should also be a responsibility in a nation state.”

·        An attempt to democratically define and enforce responsibilities for care.

·        Fair trade, not free trade.

·        Penalize countries that deny basic human rights to their citizens or fail to enforce environmental safeguards.

 

  Investors’ perspectives à free markets great, profits shd be maxed, regulations hurt profits. 

   Citizens’ perspectives à free markets work best in democracies that protect human rights, profits a source for productive investment, regulation is crucial to protect workers, consumers and the environment.