Economics @ ITT

Chomsky: The US Behaves Nothing Like a Democracy

Posted in economics by ittecon on August 19, 2013

The role of the PR industry in elections is explicitly to undermine the school-child version of democracy. What you learn in school is that democracies are based on informed voters making rational decisions. All you have to do is take a look at an electoral campaign run by the PR industry and see that the purpose is to create uninformed voters who will make irrational decisions. For the PR industry that’s a very easy transition from their primary function. Their primary function is commercial advertising. Commercial advertising is designed to undermine markets. If you took an economics course you learned that markets are based on informed consumers making rational choices. If you turn on the TV set, you see that ads are designed to create irrational, uninformed consumers making irrational choices. The whole purpose is to undermine markets in the technical sense.

via Chomsky: The U.S. behaves nothing like a democracy — www.salon.com — Readability.

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2 Responses

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  1. ittecon said, on August 19, 2013 at 12:02 pm

    ‘Systemic risk’ means the risk that if a transaction fails, the whole system may collapse. That’s what’s called an externality in economic theory. It’s a footnote. And it’s one of the fundamental flaws of market systems, a well-known, inherent flaw, is externalities. Every transaction has impacts on others which just aren’t taken into account in a market transaction.

  2. ittecon said, on August 19, 2013 at 12:18 pm

    But there is another part of Magna Carta which has been forgotten. It had two components. The one is the Charter of Liberties which is being dismantled. The other was called the Charter of the Forests. That called for protection of the commons from the depredations of authority. This is England of course. The commons were the traditional source of sustenance, of food and fuel and welfare as well. They were nurtured and sustained for centuries by traditional societies collectively. They have been steadily dismantled under the capitalist principle that everything has to be privately owned, which brought with it the perverse doctrine of – what is called the tragedy of the commons – a doctrine which holds that collective possessions will be despoiled so therefore everything has to be privately owned. The merest glance at the world shows that the opposite is true. It’s privatization that is destroying the commons.


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