Who doesn’t love a bargain? For the last few months, I’ve been fighting the lure of those big, flat LCD televisions. I’m no great videophile, they all look great to me (compared to the old set I have), and best of all, every time I walk in a store, they’re cheaper. It’s amazing, really. It’ a wonder of the free market.
Only, as it turns out, the free market isn’t. Free, that is.
In Supercapitalism: The Transformation of Business, Democracy, and Everyday Life, Robert Reich agrees that global capitalism had made goods both cheaper and more plentiful. However, the price tag at the store doesn’t represent the full price we pay for this consumer bounty. In creating not just a market, but an international culture, driven almost entirely by price, we’ve sacrificed much of our ability to control the actions of corporations or even the quality of our own lives.
The tendency when looking at globalization is to blame the giant international corporations, but Reich has another villian at the center of the story. You. You and me. You and me and our constant search for a cheaper pair of socks, a better deal on a car, that beautiful cheap 47″ TV. The consumer culture we’ve built creates an enormous pressure on price — a pressure that far outweighs every other factor shaping the actions of corporations. Reich’s picture of the people serving up those child-labor sneakers and lead-painted toys isn’t one of corporate Snideley Whiplashes rubbing their hands together in glee. It’s of corporations desperately trying to keep up with the demands of consumers for more, more, more delivered cheaper, cheaper, cheaper.
But whether they’re driven by greed, survival, or a mixture of the two, the result is the same. Price trumps everything. Pass a law that protects labor? Good for you, but the corporations will find another place to make their goods cheaper. Pass a law against pollution? How nice. They’ll go somewhere else not so particular. And when they’ve found that place where they can operate without scrutiny, for the cost of a few bribes, will you turn up your nose at the products they put on your local shelves? Of course not. You’ve got to make a good impression at work. You’ve got to get your ever-growing kids outfitted for the new school year.
To deliver that new television at such a great price, the company making it will chop their payroll, move assembly off shore, buy their parts piecemeal from companies you’ve never heard of, and sell it directly to select “big box” stories, leaving your local retailers (if you still have any) out in the cold. Will they tell you about the safety record of the factory in Bangladesh? Will they talk about the metallic salts spilled over east Africa while mining for all those elements it took to make the electronics? No. What they will tell you is that their set is $200 cheaper than their competitors. Consumers will turn out in droves.