Last week I was having lunch with a colleague (of sorts) and we were on the topic of the economy, outsourcing of jobs, etc. I mentioned that we were living in, what I’ve taken to calling, a crappy low-rent future *. He pointed out, and I agree, that this is largely because corporations have broken the social contract. It turns out he had been reading Robert Reich’s “Super Capitalism while I had been reading “The Global Class War. In their own ways, each of these books tells the story of how corporations from the end of the WWII with the New Deal until the late 1970s were bound by something of a social contract. Corporations recognized that their customer base was their employee base and that while you might not want to pay your employees, not doing so would spiral out of control so that your own customers couldn’t afford your products. Corporations began to slip the social contract in the late 70s with the Regan Revolution. The trend continued in the 80s and 90s as companies began to achieve transnational status: i.e., their customer base and their employee base were no longer the same. NAFTA and the follow-up “free trade agreements accelerated this trend by allowing companies to shift labor and production to the places where it was cheapest without actually requiring labor or environmental standards that would level the playing field.
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