American Capitalism Has Failed Us: We’re overworked, underemployed and more powerless than ever before

“The reason they call it the American Dream is because you have to be asleep to believe it.” — George Carlin.

By Ann Jones
Salon (2/4/16)

Some years ago, I faced up to the futility of reporting true things about America’s disastrous wars and so I left Afghanistan for another remote mountainous country far away. It was the polar opposite of Afghanistan: a peaceful, prosperous land where nearly everybody seemed to enjoy a good life, on the job and in the family.

It’s true that they didn’t work much, not by American standards anyway. In the U.S., full-time salaried workers supposedly laboring 40 hours a week actually average 49, with almost 20% clocking more than 60. These people, on the other hand, worked only about 37 hours a week, when they weren’t away on long paid vacations. At the end of the work day, about four in the afternoon (perhaps three in the summer), they had time to enjoy a hike in the forest or a swim with the kids or a beer with friends — which helps explain why, unlike so many Americans, they are pleased with their jobs.

Often I was invited to go along. I found it refreshing to hike and ski in a country with no land mines, and to hang out in cafés unlikely to be bombed. Gradually, I lost my warzone jitters and settled into the slow, calm, pleasantly uneventful stream of life there.

Four years on, thinking I should settle down, I returned to the United States. It felt quite a lot like stepping back into that other violent, impoverished world, where anxiety runs high and people are quarrelsome. I had, in fact, come back to the flip side of Afghanistan and Iraq: to what America’s wars have done to America. Where I live now, in the Homeland, there are not enough shelters for the homeless. Most people are either overworked or hurting for jobs; housing is overpriced; hospitals, crowded and understaffed; schools, largely segregated and not so good. Opioid or heroin overdose is a popular form of death; and men in the street threaten women wearing hijab. Did the American soldiers I covered in Afghanistan know they were fighting for this?

Ducking the Subject

One night I tuned in to the Democrats’ presidential debate to see if they had any plans to restore the America I used to know. To my amazement, I heard the name of my peaceful mountain hideaway: Norway. Bernie Sanders was denouncing America’s crooked version of “casino capitalism” that floats the already rich ever higher and flushes the working class. He said that we ought to “look to countries like Denmark, like Sweden and Norway, and learn from what they have accomplished for their working people.”

He believes, he added, in “a society where all people do well. Not just a handful of billionaires.” That certainly sounds like Norway. For ages they’ve worked at producing things for the use of everyone — not the profit of a few — so I was all ears, waiting for Sanders to spell it out for Americans.

But Hillary Clinton quickly countered, “We are not Denmark.” Smiling, she said, “I love Denmark,” and then delivered a patriotic punch line: “We are the United States of America.” Well, there’s no denying that. She praised capitalism and “all the small businesses that were started because we have the opportunity and the freedom in our country for people to do that and to make a good living for themselves and their families.” She didn’t seem to know that Danes, Swedes, and Norwegians do that, too, and with much higher rates of success.

The truth is that almost a quarter of American startups are not founded on brilliant new ideas, but on the desperation of men or women who can’t get a decent job. The majority of all American enterprises are solo ventures having zero payrolls, employing no one but the entrepreneur, and often quickly wasting away. Sanders said that he was all for small business, too, but that meant nothing “if all of the new income and wealth is going to the top 1 percent.” (As George Carlin said, “The reason they call it the American Dream is because you have to be asleep to believe it.”)

In that debate, no more was heard of Denmark, Sweden, or Norway. The audience was left in the dark. Later, in a speech at Georgetown University, Sanders tried to clarify his identity as a Democratic socialist. He said he’s not the kind of Socialist (with a capital S) who favors state ownership of anything like the means of production. The Norwegian government, on the other hand, owns the means of producing lots of public assets and is the major stockholder in many a vital private enterprise.

I was dumbfounded. Norway, Denmark, and Sweden practice variations of a system that works much better than ours, yet even the Democratic presidential candidates, who say they love or want to learn from those countries, don’t seem to know how they actually work.

Why We’re Not Denmark

Proof that they do work is delivered every year in data-rich evaluations by the U.N. and other international bodies. The Organization for Economic Cooperation and Development’s annual report on international well-being, for example, measures 11 factors, ranging from material conditions like affordable housing and employment to quality of life matters like education, health, life expectancy, voter participation, and overall citizen satisfaction. Year after year, all the Nordic countries cluster at the top, while the United States lags far behind. In addition, Norway ranked first on the U.N. Development Program’s Human Development Index for 12 of the last 15 years, and it consistently tops international comparisons of such matters as democracy, civil and political rights, and freedom of expression and the press.

The Nordic Model

What is it, though, that makes the Scandinavians so different?  Since the Democrats can’t tell you and the Republicans wouldn’t want you to know, let me offer you a quick introduction. What Scandinavians call the Nordic Model is a smart and simple system that starts with a deep commitment to equality and democracy. That’s two concepts combined in a single goal because, as far as they are concerned, you can’t have one without the other.

Right there they part company with capitalist America, now the most unequal of all the developed nations, and consequently a democracy no more. Political scientists say it has become an oligarchy — a country run at the expense of its citizenry by and for the super rich. Perhaps you noticed that.

In the last century, Scandinavians, aiming for their egalitarian goal, refused to settle solely for any of the ideologies competing for power — not capitalism or fascism, not Marxist socialism or communism. Geographically stuck between powerful nations waging hot and cold wars for such doctrines, Scandinavians set out to find a path in between. That path was contested — by socialist-inspired workers on the one hand and capitalist owners and their elite cronies on the other — but it led in the end to a mixed economy. Thanks largely to the solidarity and savvy of organized labor and the political parties it backed, the long struggle produced a system that makes capitalism more or less cooperative, and then redistributes equitably the wealth it helps to produce. Struggles like this took place around the world in the twentieth century, but the Scandinavians alone managed to combine the best ideas of both camps, while chucking out the worst.

In 1936, the popular U.S. journalist Marquis Childs first described the result to Americans in the book Sweden: The Middle Way. Since then, all the Scandinavian countries and their Nordic neighbors Finland and Iceland have been improving upon that hybrid system. Today in Norway, negotiations between the Confederation of Trade Unions and the Confederation of Norwegian Enterprise determine the wages and working conditions of most capitalist enterprises, public and private, that create wealth, while high but fair progressive income taxes fund the state’s universal welfare system, benefitting everyone. In addition, those confederations work together to minimize the disparity between high-wage and lower-wage jobs. As a result, Norway ranks with Sweden, Denmark, and Finland among the most income-equal countries in the world, and its standard of living tops the charts.

The truly radical idea that makes the difference…

So here’s the big difference: in Norway, capitalism serves the people. The government, elected by the people, sees to that. All eight of the parties that won parliamentary seats in the last national election, including the conservative Høyreparty now leading the government, are committed to maintaining the welfare state. In the U.S., however, neoliberal politics put the foxes in charge of the henhouse, and capitalists have used the wealth generated by their enterprises (as well as financial and political manipulations) to capture the state and pluck the chickens. They’ve done a masterful job of chewing up organized labor. Today, only 11% of American workers belong to a union. In Norway, that number is 52%; in Denmark, 67%; in Sweden, 70%.

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