This essay consists of eight parts by which the theory of a humanistic and a true democratic society will be presented in brief. However, each part from this lengthy writing could be read independent from the rest. It is in response to the situation when capitalism will be eventually eradicated as a result of globalization and free trade. This inevitable process was presented in theory in “Globalization and the End of Capitalism,” and with factual documentation in “Globalization and the Demise of Capitalism.” (WWW.democracywhere.com and ) In those two essays, it was presented that as globalization continues, advanced countries such as the United States will face reduced domestic production of goods and services, phenomenal importation of cheaper goods and services from abroad, increasing unemployment, cap in pays, reduced protection in health care and retirement, and consequently, reduced standards of living for over 90% of the workforce and their families. At the same time, in developing countries like China, there will be substantial increase in production of goods and services, increasing demand for employment, increasing wages, health care and fringe benefits and consequently higher standards of living for the majority of population. Ultimately, as a result of fierce competition between global firms, the margin of profit will be continually cut in order to remain competitive to the extent that companies will be satisfied if they come out even with no loss. At this stage, capitalism will be virtually, if not actually, eradicated since despite its continuing profit motive as its end, opportunities will be rare if any.
The urgent question now, before it gets too late, and for the near future is how can this great nation of 300 million rescue itself by, first, discovering some deeply rooted problems, and second, seeking answers for proper recovery and needed transformation to a democratic and just society, effective means to materialize it and be a forerunner as usual by presenting a model for the rest of the world nations. Because of complexity of the issues concerning the problems as well as the future perspectives, the subject matter needs to be presented by several essays under the same topic divided into several parts. The topic selected will be Technological Democracy: A Humanistic Philosophy of the Future Society. Here is Part I.
Who Are We As A Nation?
Human civilization has gone from its primitive barbarism through many stages of development to its present status in which, despite some democratic and humanistic tendencies and pretensions, the character of bestiality and barbarism still prevails in and among many nations.
First, and perhaps the most important, is the nature of ownership and desire for possession. The scarcity in early stages of human life created the concept of property and ownership. If a man killed an animal for food, he was considered to have a right over his kill. But other hungry humans could not see him having all to eat and yet preserve the rest while others were badly in the need of food. Thus, the food, whoever had produced it, was forcefully and frequently brutally shared and consumed. Then came the muscle man who intended to keep his pray, and whatever he had taken from others. Those who dared to force him to share his fortune with the others were brutally banished in individual battles. The others submitted to his power. Later he extended his right of possession to other human beings and subjugated them to his command by force. This was the beginning of the era of slavery which has continued since in different forms. Until the wake of capitalism, kings and nobles ruled with absolute power over property rights, and the rest were either subjects or held property rights at the mercy and pleasure of the ruler. The ruler could confiscate property of anyone and banish him from the society.
Capitalism tended to eliminate this absolute power of the ruler by recognizing inalienability of property rights of every individual. The concept of life, liberty, and property was advocated and advanced. Of course the main purpose was to guard the possessions and persons of the capitalist from being at the mercy of the ruler. Consequently, the absolute monarch systems were abolished and the representative system was established over which the capitalist expected to have controlling influence. This property right and individual freedom became absolute rights and their protection was made the prime obligation of the state. These rights were made to appear universal, covering every citizen, but the main purpose was to protect the capitalistic class, and this goal was achieved in actual operation.
Thus, the capitalist was allowed to accumulate wealth under protection of the state, without infringement on his right to life , liberty, and property. Initially, the free enterprise system or laissez-faire economic concept was favored and sustained. The state was denied power to interfere in the operation of the economy and was given the obligation of protecting the absolute private property right.
Capitalism created a dynamic society by giving each individual the right to his creation and the absolute right for its possession and ownership. It also allowed unrestricted exploitation of workers. This dynamism, during the last two centuries, did cause an unprecedented industrial and economic development. But as capital tended to accumulate in the hands of a few, the societal system tended to become more and more stratified and undemocratic. The primary factor causing capital accumulation was exploitation of labor, which was the essential principle of the capitalistic system.. Exploitation caused a drastic class stratification topped with a small class of economic elite and bottomed with a very large class of people plunged in poverty and despair. Capitalism also created a large middle class which was and is being used by the elite as its main source of capital, management, technological knowhow, administration and maintenance of the state. To expand legal control beyond one’s own possession, and in order to create an open ended access to capital for investment on production and marketing, the capitalist invented an economic institution, the corporation, which has served very well its purpose up to the present. Most of the capital for the corporation comes from the middle class and goes directly under the control of the ruling elite within each corporation known as the board of directors. In its face, like the government, the corporation appears to be a democratic business organization. It consists of shareholders, often numbering in millions, a board of directors as its policy-making body, elected each year by the shareholders in their annual meeting, a president and other chief executive officers (CEOs) selected by the board of directors.
In reality, the incorporating directors, who belong to the elite class perpetuate themselves as board members through the electoral process over which they have full control. Most of the corporation shares are bought in small numbers by the middle class. To succeed in sale, the values of the shares are made affordable even for upper lower class. In general, the value of a share of giant corporations are under $100. This allows even the low income class to purchase a few shares a year.
All this capital goes under the control of the board of directors of the corporation. Each year all the shareholders receive a notice of the annual shareholders convention and an invitation to participate in the annual electoral and policy-making process. Along with this notice the shareholder also receives a copy of the balance sheet of the corporation showing the operational account of the corporation with a favorable return for the investment.
The notice suggest to the shareholder that if he or she is not able to attend the convention, after investigating the balance sheet of the corporation he or she may like to sign and return the enclosed proxy card bestowing upon the board of directors the right to represent the shareholder at the convention meetings and vote on his or her behalf. Those who hold a small amount of shares, say $40,000 out of a small business assets of say $400 million, who also do not find it economically or financially feasible to afford the expenditures of attending the convention, and who are satisfied with the financial report relating to the past year’s operation as presented in the attached balance sheet, sign and return the proxy card allowing the board to vote on their behalf.
Statistics show that only a small percentage of shareholders, around 5 percent, actually attend the annual convention By the time of the convention the board of directors has collected enough shares by proxy to command a safe majority. It reelects its members and votes for its members desired policies. The convention becomes nothing more than a ceremonial gathering and serves no shareholder interest but only those of the directors.
By this process the elite members perpetuate their hold on immense capital of the shareholders and its full control. For example, the family wealth of the Rockefellers is estimate4d around four billion, but the family has full control over corporate assets far in excess of 300 billion, including several giant banks and corporations by occupying membership in the board of directors of these institutions. This is the way such a small group of economic elite sustains its monopoly over major lines of production of goods and services.
Through this economic and institutional power, the elite controls the media of information, controls and manipulates both major political parties, and determines the nomination and selection of the majority of candidates to Congress as well as to the presidential office. It also substantially influences the social processes such as the educational system, even its curricular contents, always preparing ground for better maximization of profits and accumulation of wealth and power. Laissez-faire capitalism has now transformed itself into monopoly capitalism, a true menace to democratic norms and processes, to human well being and preservation of natural resources and environmental quality.
Multinational or global corporations are the result of such concentration of immense capital, resources, and power in the hands of the elite in a global scale. A global corporation is a new monster with hundreds of arms. It is responsible to no state yet has provided circumstances which make it protected by every government in any country where it has expanded its operation.
This advanced stage of capitalism, particularly during the last four decades, by its inevitable process of development and operation, has caused an increasing number of workers to become better educated, and citizens to become conscious of its deteriorating effect on the environment and quality of life; of its increasing hold, through the control and use of technology, on workers as well as consumers; and of its utter disregard for human dignity, well being and life as a whole. Since its entity expands beyond national boundaries, the existing systems of government not only have no full control over it but have become influenced by it and turned into its protectors.
Consequently, democracy in its proper essence has disappeared, leaving behind only a deceitful facade, causing many to believe in its true existence. The global corporation has made all capitalistic democracies essentially outmoded, powerless, and obsolete. There is an urgent need for a new theory of modern state which will liberate societies from the yoke of these giants and establish a truly democratic system that will return power back to individuals, restore and foster human honesty, dignity, integrity and, above all, equality of opportunity.
Looking back historically and critically, all present deficiencies in our modern societal systems are the result of our inherited barbarian characteristics. After several thousand years of organized societal life we humans have not yet been able to rid ourselves from the barbarian and bestial status of our early ancestors. Possessiveness is a barbarian characteristics. We aspire to own things; earlier, we aspired to own even other humans, not just as a means to satisfy our needs, but mainly for selfish ends. As our barbarian ancestors, we pride ourselves in having big muscles and punch someone on the nose whom we don’t like. As barbarian we pay and enjoy watching two boxers demolish one another, we admire bull fights and cock fights where one side has to face torturous attacks until defeated and often perished. With advanced technology in our possession we have even become a thousand times more barbarian. We have fought several bloody wars during the past century, killed over 50 million people, destroyed thousands of cities, nature, and environment for no sustainable humanistic cause but for property, power, and domination over more humans and resources. Just in the past five years, we have caused the death of over 1.2 million humans, 96 percent innocent man, woman and children, and has caused incredible destruction of homes and properties in a small country of 26 million, Iraq, with 4.5 million refugees.
We are still quite far from a truly civilized society where wisdom and fairness take place of force and power; where simplicity of life overshadows its complexities; where we as humans look beyond our own interest to those of others around us, even those far away from us; and where we are fair and affectionate toward the natural environment, plants and animals, and ultimately toward our fragile planet.
None of the existing societal systems has moved us toward this end. We need a societal theory which will open the road toward achieving these humanistic aims, and lead us to a gentle, clean, simple, just and affectionate societal environment.
Professor Emeritus at the University of Wisconsin System,and a Fulbright scholar, a multi-disciplinary, multi-cultural, and multi-lingual scholar with background in Mechanical Engineering (B.S.M.E.), Continental and Islamic Law (Licenciate), J.D. in American Jurisprudenxce, LL.M. in International Law and International Economics, Ph.D. in Political Science, Economics and Administration, and Doctor of the Science of Law (S.J.D.) the highest law degree offered in U.S. Fluent in five languages: English, French, Spanish, Persian, Azeri-Turkish. Elementary knowledge of Arabic, Urdu, Russian and Italian. Patented inventions; an artist, a poet (oil and pastel), a musician (violin), with over 35 years of academic background in teaching, reseasrch and administration, research and cultural studies in many countries in Europe including USSR, Middle East, Central Asia, Northe africa, Central and South America. Author of 8 books and many scholarly articles listed in his website http://www.democracywhere.com