Noam Chomsky – The Nanny State

Noam Chomsky – The Nanny State

Hedges: You talk about the nanny state What do you mean – the nanny state? What do you mean by that? Chomsky: The nanny state is a state that gives gifts to sectors that have the power to demand it, which typically means the rich and the powerful. I mean there are, you know — Hedges: So is this like subsidies to the fossil fuel industry? Chomsky: Hundreds of billions of dollars – I think it’s something like 500 billion a year to the fossil fuel industry. Hedges: Talking about government subsidies? Chomsky: Plain government subsidies Take, say, the financial industries, which are the ones that exploded during the neoliberal period, there was an interesting IMF study that came out of – International Monetary Fund – a couple years ago which tried to determine the source of the profits of the six largest American banks. Turned out, it’s almost entirely public subsidy through the indirect effects of the implicit government guarantee – it’s called informally “too big to fail” It means that there’s an implicit guarantee that they’re not going to fail, which means you get access to cheap credit, inflated credit ratings, incentive to carry out risky, hence generally profitable, transactions. If anything goes wrong, the public will bail you out. That amounts to, as the business press estimated, that at about 80 billion dollars a year, just straight subsidy. In fact, everywhere you look, there’s massive subsidy, and it’s more than that. I mean, take, say, the high-tech economy – the computers, internet, satellites, micro electronics, the components of your iPhone, whatever it may be – almost invariably, they trace back to public subsidy in the state sector of the economy. Either actual state sector, like places like this [MIT], which are fundamentally part of the state sector, or subsidy to IBM or something like that. And in fact what typically happens — computers are a striking case — for decades, the risky and creative work was basically funded by the public Finally, it’s handed over to private corporations for marketing and profit, and they indeed are protected by monopoly pricing rights. Hedges: You had an interesting figure here, you said corporations spend about 2.6 billion a year on lobbying expenditures. That’s more than the 2 billion we spend to fund the House, at 1.18 billion, and the Senate, at 860 million. What does that say about our democracy? Chomsky: Well, actually, the huge increase in lobbying also took place at this transition point between the regulated capitalism and the neoliberal capitalism. [In the] early 70s, you start getting a very sharp increase in the number of lobbyists. In fact, there’s probably more lobbyists — they’re basically writing the legislation. I mean, a congressperson usually relies on the staff to write the legislation, which maybe he or she tweaks and signs. What does the staff do? They consult with lobbyists, who are often experts in the area where they’re writing the legislation. So they produce suggestions – sometimes actual texts of legislation – which then go to the Congress

15 thoughts on “Noam Chomsky – The Nanny State

  1. yet the same Government expects the people to contribute to such TERRIBLE wealth inequality through taxation. Bitch Please….

  2. If you put Chomsky on the right of Matthew's 23, you have to have MacArthur to present Luke on the left which Capitalized the Socialism of the 3 levels of the ∆ in John's 21 agenda.
    Only then My Father forgive them for they do not know what You are doing, when the 3 level do not become less or more stagnant , because that all Revelation's 3:18 offer. Thus makes any addition , a level of transgression.
    ( Correction on the 3rd level: See, that You place on top for thousand, three, and hundred days ,then the sanctuary shall be cleansed, for My Father who has given Them to Me is Greater than all, and no one is able to snatch Them out of my hand, because I and My Father are one. And on this level, the rest of the crowd does not know The Law is accursed. So there was a division among The People because of him, and some of them wanted, but no one laid hands..)

  3. The only creators of value in any culture are the willing/producers. What they produce is picked apart by the unwilling, government, university's and financial institutions.

  4. Interesting how Chomsky defines nanny state. I always understood nanny state to mean gov't micromanaging minute things (e.g. the EU legislating how bent a banana should be) and sometimes even personal choices of individuals; many of which does not necessarily mean that the authority is exercising autocracy.

    Edit: grammar and clarity


    I would like some more on your understanding of 'Why Trump'. I think you need to delve a bit deeper into your childhood experiences on the sidewalks of New York to understand why if there was an election in the morning between Clinton and Trump. I'd still vote Trump, if I could.
    If work is in short supply go with the professional businessman and shy far away from the wealth hoarders, especially the Neoliberal variety.

  6. Unions and working class people are so weak compared to corporations that they have to go begging the government when they can't pay the bills. Ironically, corporations run away to socialist countries because the workers already have insurance. Meanwhile, Republicans are cutting taxes on the rich, leaving loopholes open, opposing universal health care, siding with corporate on tort reform and worker's comp cases, and just being an enemy to the working class in general.

  7. Well our country is becoming a nanny state day by day, so a way to prevent or better yet REVERSE most of these nanny state disasters would be to stop voting for big government politicians.

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