Noam Chomsky on the State Corporate Complex
April 25, 2011By Kent Kuran
“Those who control the economic life of a country also tend to have an overwhelming influence over state policy“ was the message Noam Chomsky came to deliver on Thursday 2011 April 7, at Hart House of the University of Toronto. He added that such a truism should even be taught in grade schools.
Titled “The State Corporate Complex”, the event was coorganized by the Hart House Debates Committee (HHDCe), Science for Peace (SfP), and the Near East Cultural and Education Foundation (NECEF) and drew over 700 people to the sold out lecture.
It was the second of a three stop circuit for Chomsky in Canada, with the first held the prior evening at the University of Toronto at Scarborough, titled “Academic Freedom and the Corporatization of Universities” and the third to be held the following afternoon at Carleton University, titled “Democracy and the Public University”.
The afternoon began with an introduction to Hart House by Louise Cowin, Warden, followed by a foreword given by Linda McQuaig, columnist for The Toronto Star, who herself had given a talk at Hart House earlier in the school year. McQuaig described Chomsky as “arguably the most important intellectual alive today […] and the eighth most cited source of all time” as well as a holder of an honorary doctor from the University of Toronto itself. Yet, she asked how come he remains outside of the mainstream media.
Chomsky, a former professor of linguistics and an activist now aged 82, was in his hallmark blue shirt and sweater, missing his corduroy sport jacket. His talk, which initially focused on America, later diverged to touch on such varied issues as the Arab uprisings for democracy and the Israel Palestine conflict.
The nanny state has turned from helping the people to helping corporations, was Chomsky’s thesis. He presented a recent theory of what American democracy had turned into, where “elections are occasions in which coalitions of private investors coalesce to invest to control the state”.
“Elections are pretty much bought and the buyers expect to be rewarded. It happens all the time.”
“As illustrated very clearly in the last [American] presidential election in 2008, Obama’s victory traces largely to a huge influx of capital from the financial institutions especially towards the end of the campaign. They preferred him to his opponent, Mccain,” explained Chomsky.
“They expect to be rewarded and of course they were. The country at the time was mired in a deep recession. So Obama’s first act was to select an economic team.” Chomsky specifically pointed out that, “It was drawn almost entirely from those who had caused the severe economic crisis that he had inherited. [Obama] systematically avoided critics of their practices including such prestigious ones – Nobel laureates.”
Chomsky then elaborated on the media’s reaction stating that, “Actually the business press wrote rather ironically about this. Bloomberg News did a review of Obama’s economic team and looked at their records and concluded that these people should not be on the economic team to fix up the economy; they should be getting subpoenas. They did not of course,” a comment that brought laughter from the crowd.
“Not surprisingly the team chose measures that rewarded the major culprits who are now richer and more powerful than before; poised to lead the way towards the next more severe crisis,” warned Chomsky.
He then launched in to how the rest of the people was represented in Congress. “There are careful studies of Senate votes over a long period. They show the Senate is indeed responsive to a sector of the population, the top third in income. Actually closer analysis would show it is closer to a fraction of that top third.”
“In contrast there is no correlation at all between Senate votes and opinions of the middle third, and for the bottom third there is a correlation, it is negative. Senate votes are counter to preferences for the bottom third,” detailed Chomsky.
Chomsky went on to explain that the nanny state no longer works for society at large, but rather just the wealthy. “They [corporations] can rely on the government for an insurance policy to safely engage in risky transactions and make huge profits. Yet they do not take into account what the jargon of economics calls externalities.”
“And when [the system] does collapse it is not a big problem, they can run to the powerful nanny state that they nurture, clutching in their hands ‘Friedman’ and demand the bailout because they are ‘too big to fail’ as it is put.”
Chomsky turned sarcastic. “As one commentator added, ‘too big to jail’ would be [a better term] for these crimes. It is a pretty impressive scam and it is in radical violation of capitalistic principles. But, the masters of man kind only believe in those principles for others not themselves.”
The event included a donation speech by Marion Boulby, President of NECEF, asking attendees to donate to the Boat to Gaza. This was followed by Chandler Davis, Treasurer of SfP, thanking the audience and inviting them to a protest against tuition fee increases outside of the Council Chamber in Simcoe Hall.
The protest of the Governing Council meeting, organized just days before, coincided with the day of the talk, which had been planned months in advance according to Semra Eylul Sevi, the moderator for the event and Director, Communications of the Hart House Debates Committee. Nonetheless, Chomsky gave a short speech, with Mcquaig and Davis, to protestors outside Simcoe Hall before departing the university. He reiterated that universities must find funding from somewhere as they are a burden on society; one must just make sure they do not influence the activities that occur within.
This blog was adapted from an article originally published in The Blue and White.
Kent Kuran, a third year mechanical engineering student, is a Governor of the University of Toronto and Founding Editor of The Blue and White (http://theblueandwhite.ca). He is an avid photographer and prolific writer who will read anything that comes his way.
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Presented by the Hart House Debates Committee and The Churchill Society for the Advancement of Parliamentary Democracy
On Wednesday, January 19th, at 7:00 pm, the Hart House Debates Committee, Hart House Social Justice Committee, and Free the Slaves U of T, presents a free panel debate on the court challenge Bedford/Lebovitch/Scott vs. Canada concerning recent changes to the laws criminalizing prostitution in Ontario and its implications.