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NewEconomicThinking
NewEconomicThinking·January 19, 2021

Chris Hedges on the Systemic Weakening of US Democracy, Corporate Capture, and the Rise of Christian Fascism

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Summary

Chris Hedges argues that the structures of democratic capitalism in the United States have been severely weakened over decades, a process he traces back to the 1971 Powell Memo. This memo, a blueprint for corporate America, initiated a frontal assault on popular grassroots movements, labor unions, and social programs, leading to de-industrialization, the destruction of welfare, and the repeal of critical financial regulations like Glass-Steagall. Hedges contends that this systemic dismantling, turbocharged by policies like NAFTA and constant deregulation, has reconfigured American democracy into an oligarchy seized by global speculators and the billionaire class, who effectively boycott taxes and corrupt the political process. He highlights how the Democratic Party, under figures like Clinton and Obama, consciously shifted to attract corporate money, becoming "faux liberals" who serve Wall Street interests while using identity politics as a smokescreen for corporate colonialism.

Hedges further elaborates on the profound disenfranchisement and rage of the white working class, whose communities have been devastated by trade deals and economic policies, leading to "sacrifice zones" across the country and fueling crises like the opioid epidemic. He criticizes the media's transformation from agenda-setting institutions like the old New York Times into partisan, siloed outlets, as detailed by Matt Taibbi and the Pew Research Center. This partisan divide, Hedges argues, is commercially successful but politically dangerous, fostering a "narcissism of minor difference" between parties that largely agree on major issues like endless war, austerity, and trade deals, while deflecting blame (e.g., Russiagate) from their own complicity in the working class's dispossession. He warns of a new Cold War being ratcheted up by the Biden administration, continuing a pattern of creating external enemies to avoid confronting domestic structural failures.

The core malfunction, Hedges asserts, is a system rigged to favor money over votes, where corporate funding dictates political power and policy outcomes. He points out that politicians like Pelosi, Schumer, and McConnell are products of this money-driven system, and without it, they wouldn't exist. Bernie Sanders, despite a genuine grassroots effort, was ultimately thwarted by the oligarchic elite and the Democratic Party establishment, who openly stated they would never accept him as a nominee. Hedges suggests that Sanders chose his career over a full confrontation with the monolith, a decision that, while understandable, rendered him "morally and temperamentally unfit to lead this fight" in the face of such entrenched power.

Hedges concludes with a dire warning about the laying of groundwork for "Christianized fascism," citing the Christian Right's acculturation of the Christian message to American capitalism and imperialism, and the appointment of unqualified, ideologically driven judges by the Federalist Society. He fears that the Biden administration's return to "normal" – with appointees rooted in the corporate elite and the very ideology that created social inequality, militarized police, and mass incarceration – will only deepen despair and pave the way for a "competent fascist." The podcast underscores a pervasive sense of losing control as a nation and a species, with a media that no longer informs and political parties that refuse to confront their own responsibilities, leaving the public with false explanations and unaddressed despair.

Key Quotes

"the structures of democratic capitalism have been severely weakened that's a decades long process"
"what we've seen since is a frontal assault against all popular movements that gave not only a voice but power to the citizenry"
"we've reconfigured the capitalist democracy into a system of oligarchy"
"the transformation of the democratic party into the republican party the republican party was pushed so far to the right that it just became insane"
"to just write these people off as racist is not to understand what happened"
"the media has essentially siloed itself it doesn't seek as the old with the old monopolies... all of that's gone and it's been replaced by partisan divides"
"on all of the major issues trade deals endless war wholesale surveillance austerity programs there's really almost no difference between the republican and the democratic party"
"the whole obsession with russiagate the whole attempt to blame the election of trump on moscow was really a deflection away from the complicity that the democratic party had in the dispossession of the working class"
"the system is so designed to favor money over votes as a currency for decision making that almost every elected official faces that pressure"
"the oligarchic elite was quite open that bernie sanders would never be the nominee"
"this christian right this prosperity gospel is heretical"
"we are laying the groundwork for a kind of christianized fascism"

Concepts

Themes

  • Erosion of Democratic Institutions
  • Corporate Influence and Political Corruption
  • Economic Dispossession and Social Inequality
  • Media Fragmentation and Partisan Polarization
  • The Failure of the Liberal Establishment
  • The Rise of Authoritarianism and Christian Nationalism
  • The Illusion of Political Choice
  • The Disenfranchisement of the Working Class

Related to:

Economics Insights

Market Implications

  • Consolidation of wealth, corporate tax boycotts, deregulation leading to financial meltdowns (Glass-Steagall repeal), de-industrialization, impact of trade deals (NAFTA).

Key Concepts

  • Oligarchy, democratic capitalism, corporate capture, sacrifice zones, financial deregulation, tax policy (Eisenhower era vs. modern), campaign finance.

Data Cited

  • 6% labor force unionized, 70% welfare recipients children, 90% media controlled by half dozen corporations, 91% NYT readers Dem, 95% Fox News viewers Rep, 74 million Trump votes (2nd highest), 81% Christian Right support Trump, 20% federal judgeships appointed by Trump.

Practical Applications

  • Remove corporate money from elections, universal healthcare, guaranteed minimum wage, student debt forgiveness, moratorium on foreclosures/evictions, end to wars, government jobs program (as policies the Democratic party *could* campaign on but doesn't).

Risks Mentioned

  • Loss of democratic control, authoritarian lurches, Christianized fascism, new Cold War, climate crisis, inability to address national health crises due to for-profit healthcare.

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