POL1000: Analysis of a Chapter from Robert Reich's Supercapitalism

This report provides a comprehensive analysis of a chapter from Robert Reich's book, *Supercapitalism*. The analysis begins with an overview of the chapter's structure and content, highlighting Reich's focus on the decline of American faith in democracy due to the rise of corporate lobbying. The report summarizes Reich's argument, which centers on the significant influence of supercapitalism on US government policy-making, driven by increased corporate lobbying and the resulting class warfare. Key reasons cited include the rise of culture wars and the flow of federal and corporate money into politics. The report then summarizes Reich's evidence, including examples of corporate lobbying efforts by Google and Microsoft, and the impact of federal spending on the economy. The report concludes with a reflection on how the chapter's themes intersect with the student's life, emphasizing the impact of corporate influence on policy, political conflicts, and the shift in the US economy. References to relevant books and journals are also provided.

POL1000--Analysis of a
chapter

TABLE OF CONTENTS
Structure and content of the chapter.......................................................................................2
The argument of the chapter...................................................................................................2
Summarise some of Reich's main concrete evidence for his reasons.....................................3
Reflection: How did the chapter intersect with your life?......................................................4
REFERENCES:...............................................................................................................................5

Introduction
Section1 pp 168- 178 Reich has focused on how Americans have lost faith in
democracy. Reich describes that how in early 19th century
corporate lobbying was rising slowly within US. Also, how
companies started establishing their offices. Moreover,
how Clinton created North American Free Trade
Agreement that was established by World Trade
Organisation (WTO) in Washington. With help of graphs
and analysis, he explains that big business becomes more
monolithic due to opposite reason which was increase in
competition.
Section 2 178- 189 Reich has analysed on corporate lobbying. He has shown
how various politicians after retirement became lobbyist.
How democratic and republican party controlled the
business. Reich explains that how culture wars was
increased between Democrats and Republican. Reich also
laid emphasis on flow of federal money has grown leading
to overall growth and structural shift of economy.
Moreover, how business influenced political decisions.
Section 3 189- 200 Reich has given example of how Google spent money on
corporate lobbying. Reich explained the case of Google
with Justice department and European commission relating
to lobbyists. Moreover, Reich showed that how Microsoft
profits was reduces due to laws developed by lobbyists.
Also, there has been flow of corporate money into
Washington has increased supply and demand. The
demand of corporation is influencing the policy process
and competition.
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Section 4 200- 216 Reich elaborated that corporate takeover the politics which
affects the public of United States. He focuses on expert
witnesses who became an established part of corporate
litigation in federal district courts. The motive of Reich
was to explain the role of legislation that impacts on the
performance of the organization incorporating and
establishing in United States.
Structure and content of the chapter
Reich has focused on democratic government
The argument of the chapter
Overall Argument
Supercapitalism has highly influenced the policy making of government within US. It is because
of increase in corporate lobbying.
Reasons:
 Due to recent culture wars such as abortion, gay marriage, etc. the relations
between Republican and democrats have become congressional. They are rising
these issues to engage public attention.
 The flow of federal money has grown leading to overall growth of economy. But
the flow of corporate money into politics has increased faster.
 Corporates wants to co-opt both parties because their purpose is to keep employee
wages down, reduce tax rate, exploit the developing world, etc. This has resulted
in class warfare in the economy.
 Due to corporate lobbying competition among business has increased. This has
also lead to conflicts among political parties. The fights in Congress is increasing
day by day.
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 Companies have now entered in to politics to gain more competitive advantage.
This has resulted in stiff competition among them.
 The rise in super capitalism is due to increase in demand of corporations that want
to influence the policy. They are paying more than their rivals in order to counter
its influence.
Summarise some of Reich's main concrete evidence for his reasons
Evidence of reason one
Why flow of corporate money into politics has increased faster.
There has been structural shift in US economy. It is because organisation are now focusing on
entering into politics to gain competitive advantage. They are establishing offices in cities where
public policies are devised. It is because these policies help them to gain competitive advantage
over their rivals. This has resulted in more flow of money in Washington. In 2005 Google spent
$500000 in hiring lobbying firms and consultants and opened its office in Washington Penn
Quarter.
Evidence of reason two
The flow of federal money has grown leading to overall growth of economy
There was $ 2.6 trillion spent in Washington, with authority to regulate everything in US
(Carrington, Hogg, and McIntosh, 20150). The largest spending of government occurred
between 1947 and 1973 during the Not Quite Golden Age. Therefore, there was 24% rise in
federal in 1983 that declined to under 20 % . The Major part of federal spending was done on
social security. In 1980 there was rise in 5.2 % of national economy. This was the reason of
overall growth of economy (Michalos, 2017).
Evidence of reason three:
Companies were representing interest of public in order to have strong competitive
position to their rivals.
Although, by 2006 organic food was only of $12 billion in according to food industry of $500
billion. The sales were growing 20 % annually. Organic food was the fastest growing in food
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category. Many business came up like Cascadian farm that became subsidiary of General Mills.
Also, there were growers of corn, soybean, etc. like Kraft. (Christiansen, 2017).
Reflection: How did the chapter intersect with your life?
By analysing this book I came to a conclusion that the policy developed by government
in US is highly influenced by corporates. This is due to they want economy to develop on their
basis. Also, I analysed that corporate lobbying has resulted in conflict among political parties.
This is due to the influence of corporations in policy making. I analysed that companies are using
political to gain competitive advantage. Also, certain issues are been raised by government to
engage public attention. I came to a result that due to super capitalism MNC's like Google,
Microsoft have to spend money in lobbying. I also analysed that the bipartisanship of corporate
money has shaped various minister of democrats in the service of large organisations.
The research done by Reich was the federal economy has increased during 1973. Also,
the major economic regulations was reduced in last 40 years. Moreover, there has been a shift in
economy in 1970 that has created stiff competition in the market. I analysed that supercapitilism
has separated economy from politics. This has changed the goal of corporations. It has created
conflicts in public policies leading to make industries their rivals.
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REFERENCES:
Books and journals:
Carrington, K., Hogg, R. and McIntosh, A., 2015. The hidden injuries of mining: Frontier
cultural conflict. In Environmental Crime and Social Conflict: Contemporary and Emerging
Issues (pp. 241-264). Ashgate Publishing Limited.
Christiansen, C.O., 2017. The Economic Rationality of “Doing Good to Do Well” and Three
Critiques, 1990 to the Present. In History of Economic Rationalities (pp. 133-140).
Springer, Cham.
Michalos, A.C., 2017. The Monster of Supercapitalism. In How Good Policies and Business
Ethics Enhance Good Quality of Life (pp. 313-328). Springer, Cham.
Reich, R.B., 2008. Supercapitalism: The transformation of business, democracy, and everyday
life. Vintage.
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