What’s Become of the Land of Opportunity?
The Great American Myth that binds the allegiance of the American people to capitalism is that America is “the land of opportunity” — that its economic system equitably empowers us to achieve affluence, if only a proper effort is made.
The hold of this mythic belief is breaking down. More and more people experience the reality of their economic disempowerment, and communities experience being powerless to determine their economic futures. People see the rich grow richer, the poor, poorer, and those in the middle joining the “race to the bottom”.
Back in 2011, President Barack Obama gave a major economic policy speech at Osawatomie, Kansas — symbolically significant as the town where Theodore Roosevelt gave his famous “new nationalism” speech in 1910. Robert Reich characterized Obama’s Osawatomie address as “the most important economic speech of [his] presidency”.
In the opening to this speech, Obama set out America’s core national predicament:
“For most Americans, the basic bargain that made this country great has eroded. Long before the recession hit, hard work stopped paying off for too many people. Fewer and fewer of the folks who contributed to the success of our economy actually benefited from that success. Those at the very top grew wealthier from their incomes and investments than ever before. But everyone else struggled with costs that were growing and paychecks that weren't -- and too many families found themselves racking up more and more debt just to keep up.”
America is no longer the land of opportunity. Hard work no longer pays off, no longer enables people to get ahead.
How big a deal is this? The Brookings Institute has mapped out the presidential voting preferences of American counties according to their local Gross Domestic Product. In the 2020 Presidential election, the 520 counties won by Biden generated 71 percent of the nation’s GDP; the 2564 counties won by Trump generated only 29 percent of the GDP.
Where people still enjoy a measure of economic opportunity, Biden won the majority; in places of economic stagnancies, Trump dominated. The correlation is a sharp one. Where opportunity has most dwindled, support for Trump has most thrived.
So, how big a deal is the loss of this “basic bargain”? A very big deal — it’s driven the rise of American fascism. Racism, male chauvinism, religious fundamentalism, and nativism all contribute, but fading economic opportunity is the primary cause.
More precisely, the central cause of economic disempowerment is the concentration of wealth that grows unchecked in the capitalist economy. Wealth disparity is now at an all-time extreme, greater even than on the eve of the Great Depression. Concentration of wealth is endemic to capitalism.
Capitalism cannot fulfill the fundamental requirement of an economy in a democratic society; it cannot maintain the “basic bargain” with the people.
If capitalism can no longer fulfill the basic bargain, what is there to replace it? This is the central question before us.
Economic Democracy and the Strengthening of Political Democracy
At the heart of an answer to this question must be an agenda for economic democracy. Local people and local communities must become sufficiently empowered to regain control of their economic destiny so that they no longer have their economic lives dominated by the transnational corporations. Our labor and our communities do not exist for the benefit of the uber-rich and the corporations. We need to live and work in an economy that is by the people, for the people, and of the people.
Where economic power is centralized, democracy gets subverted.
Centralization of economic power cannot coexist with a government that is of, by and for the people. Concentrated economic power twists political power into government that is by, for and of the special interests. Government becomes controlled by the power of money.
Some functions of the state may remain responsive to popular influence, but where decisions are made that affect moneyed interests, the voice of the people is trumped by corporate lobbyists and legislators beholden to corporate campaign contributions.
To end this tyranny, we need economic democracy as a precondition for political democracy. In political democracy there is universal voting rights but there is also the centralization of economic power.
Political democracy is easily corrupted. With political democracy comes false promises, vote rigging, rampant corruption, cronyism, and economic exploitation. The aspirations of the people remain frustrated. Political alienation and cynicism grow — as does political extremism and political polarization.
Political democracy attracts ideologues, demagogues, power-seekers, and the self-serving. It permits the corrupting influence of big corporations on the government to stifle regulations that would protect workers, communities, people’s health, and the environment.
Requirements of Economic Democracy
To resolve the failures of political democracy, there must first be economic democracy. The core intent of economic democracy is for people and local communities to enjoy economic empowerment. For this, four requirements must be met:
First, the basic necessities and amenities of life should be guaranteed to all, according to standards appropriate to the region and the age.
Second, there should be ever-increasing purchasing power enjoyed by all, while maintaining sustainable development.
Third, the power to make economic decisions should be vested in the hands of local people and their decisions should be made on the basis of collective necessity.
And fourth, people outside the local community should not interfere in the local economy, and locally generated capital should not be drained from the local community.
Independence from Corporate Rule
Where economic globalization has been established, economic power is concentrated in the hands of large corporations. Corporate executives — remote from the aspirations of local people and local communities — control the economic fate of the society.
Under economic democracy, this would change. Local people would have primary control of economic power, stewarding their local resources to promote local prosperity. Raw materials would not be shipped elsewhere for processing but used in local industries. And instead of allowing capital to be drained out of local areas, it would, in the main, be kept local and put to use developing the potentials of the community. People would be economically secure and empowered.
What would be the effect on the government if economic enterprises were locally based, if local economies were community controlled, and if all people were guaranteed their basic necessities and amenities?
Most importantly, it would end the ability of huge corporations to corrupt the political process with skilled lobbyists, huge campaign contributions, deceptive public relations, and influencing political appointments. Instead there would be a highly empowered citizenry, electing and backing political leaders that think first to support human interests.
The Cry of the American Patriots
The influence of huge corporations on the democratic system has become so burdensome that democracy has become a rubber stamp for the economic giants who increasingly control the interests and workings of the society. These economic giants are consolidating their rule worldwide. They now thrust to take power in every realm. Because all political power will be controlled by these giants, if someone attempts to take a democratic position and do something against corporate domination they will be treated harshly. Such will be their power, if they are allowed to have it.
What is the alternative that can save the American nation from this fate? It is economic democracy. If there is local economic control, if all people can attain their basic requirements and enjoy increasing purchasing power, and if capital remains localized to enrich local communities, then democracy will become a healthy form of government and the nation’s spirit will remain vital. Economic democracy can cure the undermining of the democratic process by multinational corporate interests.
People must be given an alternative. The call for economic democracy should be widely propagated. Multinational corporations will revile it, but the people will embrace it. They will rally in support, for it is an idea that will restore their dignity, their economic security, and the democratic ideals and freedoms they cherish.
Let economic democracy become the cry of the American patriots!
I resonate deeply with what you've shared; you've captured the core issues powerfully. My question, though, is about how we can shape this story and create a framework that resonates with a broader audience, especially with those who may not yet be aligned with or aware of PROUT principles.
There’s a powerful, universal appeal in the ideas of economic empowerment, community control, and dignity. I wonder how we might present these concepts in a way that feels both relevant and urgent for people from all backgrounds, many of whom are grappling with economic challenges and might find hope in a model of economic democracy. Could we find ways to focus on relatable, everyday experiences—such as job security, fair wages, affordable living, and local business vitality? Maybe emphasizing these shared values, we can make this story resonate beyond ideological boundaries.
How can we develop a narrative that frames economic democracy as a practical, inclusive solution that enhances quality of life and safeguards freedom? This might be a way to bridge gaps, inviting more people to explore and rally around PROUT-inspired ideas. I believe that in doing so, we’d be crafting a message that aligns with the values many hold dear, even if they’re not yet familiar with PROUT itself.
Love the analysis of the breakdown between Democrat and Republican voters along economic lines, that really should have been a defining moment for the entire party to realize that they've become irrelevant to the very working class people they claim to be representing. I also really like the use of the term economic democracy, both because of the contrast with a political democracy and because democracy as a concept reverberates deeply within all of us as one of the few values that all Americans still seem to hold dear.