Showing posts with label capitalism. Show all posts
Showing posts with label capitalism. Show all posts

Tuesday, 4 September 2012

Interview with Martin Upton about financial crisis

Martin Upton

Martin Upton has a background in financial markets and risk management.

1) Where did you study and where are you teaching now?

I studied at the University of East Anglia and the University of Leeds. Now I am Head of the Centre for Accounting and Finance at the Open University Business School.

2) On summer 1992 Bank of England and Bank of Italy were "fighting" against traders not to devalue british Pounds and italia Lira; since summer 2011 ECB is "fighting" against traders in order to keep low interest rates for government bonds; do you find any similarities between the 2 situations?

The similarity is that in both cases traders and investors took the view (in 1992/3) that the GB Pound and the Italian Lira were over-valued (at the ranges set for these currencies against the DM in the ERM) and that in 2011/12 traders and investors took the view that the bonds issued by the governments of Spain, Italy and Greece were over-valued (i.e. their yields were too low - and, by inference, their bond prices too high - given the background economic fundamentals of those countries). In both circumstances the view was taken by traders/investors that it was financially rational to sell Pounds & Lira in 1992 and to sell Spanish, Italian and Greek government bonds in 2011/12 since the market view was that in each case these assets were over-valued.

3) At the end of summer, on 16 th september 1992, british government decided to withdraw the british Pound from ERM (followed by italian government doing the same with italia Lira); do you think that the lesson learned is that it's useless (and a waste of money) to "fight" against traders on specific circumstances?

(Note that membership in ERM was not withdrawn but only "suspended"). I think both episodes – particularly the ERM debacle - show that trying to maintain the price of a currency or of bonds (or indeed other assets) above the levels perceived by the market as being their ‘correct market price’ is ultimately doomed to failure. The history of the UK provides plenty of examples of how the government and the Bank of England tried to defend the value of the Pound against economic logic only, in the end, to have to give way to market forces. The ERM debacle was only one such episode – see also the periods up to the devaluation of the Pound in 1949 and 1967.

4) In Europe there's a lot of talking about a anti-high yield mechanism (the ECB will buy government bonds when they reach very high yield), do you think it could solve the problems? I personally think it will be even worse: the traders could bet even more easily if they are 100% sure that the ECB will buy government bonds when they lose value.

Well such a mechanism would put a ‘floor’ on the bond prices (or ‘cap’ on the bond yields) so it would to a degree discourage those trying to make money by short-selling. Investors will also draw some comfort if they know of the maximum downside to their investments in such bonds.

5) It's been more than 2 years of talking of "saving the Euro", do u think that one currency can work with one central bank, 17 different ministries of finance and 17 different public debts?

My view has always been that you can’t have a stable single currency zone if you don’t have a single fiscal zone. The problems faced by the Euro zone show that you can’t have a single interest rate environment in a zone where member counties go ‘solo’ on their fiscal policies. Hence the rescue of the Euro has seen a move towards a greater centralization of fiscal policy decision making. Additionally the different nature of the member counties’ economies (particularly the differential importance of the housing market to them) weigh against the workability of a single currency.

6) The ECB decided to help some governments (like italian and spanish one) buying government bonds in the secondary market. Understarding that help is help, why not buying straight in the primary market ? Buying in the primary is giving money straight to the state, while buying in the secondary is giving money to the traders! So, ECB wants to "fight" traders (who bet against Italy and Spain) ... buying their devalued bonds! Don't you think that the ECB could avoid the hypocrisy and buy bonds straight from the primary market?

I suspect that the ECB only wants to act as the ‘buyer of the last resort’. If it bought primary issues the expectation in the markets would be for the ECB to be the ‘buyer of the first resort’ – and the size of the investments made by the ECB would potentially balloon. Buying in the secondary market maintains a defence against falling bond prices and helps underpin confidence in the primary market.

7) If there is a break up of the monetary union, what do you think it will happen? In the transition time, do you think people will try to use foreign currency (if there is enough of it for an area of 330 million of people) ?

Hard to speculate on this one. I suspect that the support of Germany and pressure from the US will continue to ensure that the Euro remains patched up. The worry is though that the crippling economic consequences of the budgetary restraint being applied to GreeceSpain and Italy – and Portugal and Ireland too – will create growing political and social strains. If a country does leave the euro zone its new currency (or restored legacy currency) would trade at levels implying a massive devaluation against other currencies. Additionally further support would be needed for the banking system – and not just within the country leaving the zone.


Monday, 22 September 2008

Top 2008 brands

1901 Coca Cola calendar

Interbrand announces the 2008 best global brands, they listed the top 100. Here you can see the top 10 (i added the year):

Brand - year - 2008 brand value $ mil - country of origin

1 Coca-Cola - 1886 - 66,667 - USA
2 IBM - 1924 - 59,031 - USA
3 Microsoft - 1976 - 59,007 - USA
4 GE (General Electric) - 1878 - 53,086 - USA
5 Nokia - 1865 - 35,942 - Finland
6 Toyota - 1937 - 34,050 - Japan
7 Intel- 1969 - 31,261 - USA
8 Mc Donald's - 1940 - 31,049 - USA
9 Disney - 1923 - 29,251 - USA
10 Google - 1998 - 25,590 - USA

the first british is
27 HSBC - 1865 - 13,143 - UK
the first italian is (actually today Gucci is owned by french PPR)
45 Gucci - 1921 - 8,254 - Italy

year means the year when the name was adopted

in the press release we can read:

Coca-Cola (No.1) remains the best global brand for the eighth year in a row. Yet, a notable shift in this year’s rankings was made by IBM, which took over the No. 2 position from Microsoft (No. 3). Google also moved into the top 10 brands, at No. 10, after ranking at No. 20 in 2007.

It's possible to download the full report (pdf file, 85 pages)

The brand Google: in 10 years from nothing to number 10!! It would be interesting to know how much money the corporations spent for advertising. How much money has Coca-Cola been spending since its foundation?

Thursday, 20 December 2007

What is Second Life?

What is Second Life?
Is it just a game?
Is an escape from reality?
Is it our future life?
Capitalism has found the final solution to delete any opposition: why fighting against the capitalism when the most important thing is in a virtual world?
It doesn't matter if you have a shit job, if you live in a very tiny room: the most important thing is that you switch off your computer and get in your real environment, Second Life!
Capitalism tells you: "Why should you waste your time fighting for more rights? You're fighting in the wrong world! Get in Second Life and be who you want to be!"
In 1967 Guy Debord was explaining that it's impossible fighting against the system because the system turned everything into a spectacle. If he was alive now, maybe he would say that the fight is impossible because they turned everything into a virtual world.

In famous Freakonomics blog you can read an interview with Second Life creator Philip Rosedale.

Q: Do you have macroeconomists regulating the supply of Linden dollars? [Some virtual worlds do.] Are they Keynesians? Monetarists? Does the economy experience inflation?

A: We don’t have an economist on staff yet, but we’d love to hire a great one. That said, we do take macroeconomic analysis and the management of the economy very seriously. We have a dedicated team that monitors financial transactions in-world, as well as some automated circuit-breakers that help to keep the Linden dollar stable, at around L$270 to US$1. The GDP of Second Life is growing rapidly relative to the “outside” world, meaning that we have to aggressively increase the money supply to match velocity or we would see a rapid increase in the value of the Linden dollar. We do this transparently; you can see the changes made to the money supply and how they match economic growth here.

Q: What security measures do you take to prevent fraud and abuse? Do you have a dedicated security team?

A: Yes, we have a large team dedicated entirely to dealing with fraud and abuse. It is an important competence for us to build — any platform offering the capabilities of Second Life must necessarily also afford some ability to break the rules, and tracking and managing those cases is important to our success. However, much of the overall “security” of Second Life is provided by those using the platform, such as communities in-world that set their own “zoning” guidelines around content use.

Q: What is your position on “Rule of Law” in Second Life for promoting a stable economy? What role should the Lindens play in assuring that SL is a fair and just place to do business? I left SL a while ago because running a business eventually became too frustrating.

A: We need to create tools as a platform that allow people to self-govern. Though that process may be a bit rockier at the start, it is ultimately the only one that will scale. The Web, for example, felt similarly unregulated at the start. As time went by, people created their own customs and rules.

Q: What steps have you taken to prevent collusive or otherwise anticompetitive activity in Second Life? Do you have personnel dedicated to regulating that aspect of the economy? Do you ever wonder if we are simply characters in a Second Life in some other world?

A: Second Life as a platform is inherently less supportive of anticompetitive or monopolistic activities, which I think is one of the things that makes it so appealing. For example, there are really no “natural resources,” meaning that no one can corner the market on them. Genuine appeal and intellectual value tends to drive Second Life pricing more than distribution muscle and brand.

Q: How do you feel about accusations that by providing a literal “second life,” you’re contributing to a trend of physical isolation that’s damaging the social abilities of an increasing number of teens and adults?

A: Whether sitting in front of a computer is bad for you is a function of whether what you are doing there is more or less challenging than real life. If you are mindlessly shooting monsters, the environment has the risk of making you oversimplify the real world. If, on the other hand, you are confronted with a complex human environment with people from all over the world who are demanding of you in your interactions with them, you could actually be better off in front of the computer. Second Life can teach people new skills and connect them with new cultures in a way that the real-world environments of many places cannot.

Q: Linden Lab has talked before about the future possibilities (and challenges) of connecting to or communicating with other grids and virtual worlds. Do you feel that this is an actual possibility? What impact do you think this connection would have on Second Life’s economy?

A: We believe that virtual worlds with the kind of power and features that Second Life has will be a big benefit to human society, and also that we can continue to run a great business in a very open world. The Second Life economy will hopefully continue its strong growth regardless of our openness and interconnection with other worlds, because there is a tremendous “network effect” that will make people seek out the world with the largest economic opportunities. This is similar to the way eBay, as an auction site, enjoyed network effects that kept it largest in the face of strong competition.

Q: Have you ever read Snow Crash [it's a 1992 cyberpunk book] by Neal Stephenson? I don’t know much about Second Life but it sounds similar to the Metaverse in the fiction novel.

A: When Snow Crash came out, I was already really intent on the idea of creating a virtual world like Second Life — I had been thinking about it and doing what small experiments I could since I was in college. But Snow Crash certainly painted a compelling picture of what such a virtual world could look like in the near future, and I found that inspiring.

Q: What plans does Linden Lab have for educators who want to use second life as a virtual classroom?

A: There’s actually a vibrant community of educators already in Second Life, and we’re happy to see it continuing to grow. We’ve seen a range of academic and educational uses of the platform, from research to modeling to distance learning to real-time collaboration, and we offer a program called Campus: Second Life, which provides semester-long virtual land grants to educators that want to try teaching in the virtual world. Additionally, we have a very active e-mail list dedicated to education, on which Residents discuss best practices for in-world educators.

Q: How do people find the time for a Second Life? It seems like most people are too busy working multiple jobs and trying to keep up the payments on their credit cards and upwardly-adjusting mortgage payments.

A: Quit your real job and get one in Second Life! It isn’t possible for everyone, but there are more than 40,000 people who make money in Second Life every month.

Q: Are there any virtual goods which actually cost more than their real world counterparts (at Linden dollar/USD conversion rates)?

A: What a great question! Well, not too many yet, but unique items like virtual clothing from top designers have been sold at in-world charity events for thousands of real dollars.

Q: What has your experience led you to believe about the value, or lack thereof, of having a game-like goal orientation? Would you agree that most activity in SL involves games that people have created out of the materials available (i.e., running a business, speculating on real estate, trading custom content)?

A: People in Second Life have created over 1 billion in-world “objects” occupying total storage space of about 100 terabytes. I wouldn’t agree that these are mostly game-like; most derive their value from their intellectual, utility, or artistic appeal. If anything, Second Life is more diverse than the real world in terms of types of activities, not less.

Q: Why not open up Second Life and allow it to run on game consoles?

A: It is a great idea! We’ve open-sourced the Second Life client software in part with the hope that we can get it onto things like game consoles faster.

Q: If you do open-source, how will you make money? I’m sure there are a lot of developers waiting in the wings for this to happen, but can it be a win-win situation? Is an option like finding a middle ground between open API’s on one end and completely open-sourcing the code on the other a more realistic probability?

A: Because of the network effects that will tend to cause most people to prefer spending their time and doing their business in one virtual world, we think we can have a great business, even in a very open source/standards environment.

Q: Second Life is a fantastic place, and one of the reasons is the freedom residents enjoy to create their own environments. On the other hand, for those who are not yet experienced in Second Life, the learning curve is steep and a lot of first-time visitors seem to get lost. Do you consider it a task for your company to make Second Life a more welcoming place for newcomers, or should this issue be tackled by the residents themselves?

A: A little bit of both. We need to design the software to be friendlier, easier, and more pleasurable to use. The open-sourcing of the viewer code will definitely help with this as well – we’ve already seen a full alternative Second Life viewer created by a third party. But people are already making the content experience in-world better and better, which is exactly the idea behind the Resident-created world.

Q: Do you have a Second Life alterego?

A: Not one that I will tell you about :)

Wednesday, 31 October 2007

Interview with Naomi Klein



From the magazine Alternet an interview with Naomi Klein.

Why Can't the U.S. Have the Debate about Naomi Klein's Book That Europe Has?

By Jan Frel, AlterNet. Posted September 21, 2007.

In Europe and Canada debate is raging about Naomi Klein's new book on disaster capitalism, The Shock Doctrine. This interview with Klein considers why U.S. public debate is unable to ask fundamental questions about our economic system.

Naomi Klein's new book, The Shock Doctrine: The Rise of Disaster Capitalism, tells the history of how the American version of "free market" capitalism has spread in moments of crisis and catastrophe, when societies are too traumatized and disoriented to challenge the introduction of radical economic policies that go against their own interests.

The Shock Doctrine has already been published and translated in several countries. Excerpts from Klein's book were published in the British newspaper the Guardian, and discussion about the book has raged on its online site Comment Is Free, as well as in the German, French and Canadian press. I attended Klein's U.S. book launch event at the New York Society for Ethical Culture on Sept. 17, where she described her work and her experiences dealing with a foreign press frequently hostile to her arguments.

At least the foreign press is willing to tangle with writers who offer critiques of the capitalist system. There is plenty of economic coverage in the U.S., but fundamental questions on issues such as whether privatization of public assets benefits the public and if the focus on short-term economic growth is harmful in the long run are simply not discussed. I wondered how Klein's book, which has hit the best-seller lists all over Europe, would fare in the U.S. and what Klein's expectations were for the U.S. audience. I spoke with her on the phone about this and the issues she raises in The Shock Doctrine on Sept. 19.

Jan Frel: Your book has 70 pages of footnotes and has citations from over 1,000 sources. At the book launch in New York, you referred to this as your "body armor." The thinking seems to be that if you can back up what you're saying, then it has to be accepted. Is this what will give it legitimacy in the mainstream media?

Naomi Klein: It's more for the debate about my work. In the attempts to dismiss my work as conspiracies theories, the footnotes help.

Frel: It's often times the case that books that make powerful and damning claims with complete accuracy still don't break into public debate or hit the audience that ought to confront them. Isn't there something else that prevents radical interpretations of society and economics and buried history from reaching public debate?

Klein: I think that's true -- it's certainly true in this country. I wasn't talking about the problem my book would have getting into the mainstream; it's more about the debates around it. My books do get into the mainstream -- outside the U.S. That doesn't mean they aren't contested, but in Canada for example, The Shock Doctrine is already at No. 3 on Amazon. [Currently at No. 43 in the United States.]

Another book I did, No Logo, was a mainstream book in most of the countries where it was published, except for the U.S. In the U.S. it never was. The context I talked about the need for support for my arguments is in cases where my book is being debated and argued. So in the U.S., I totally agree that having solid footnotes are no guarantee that you can start a mainstream debate. I don't have any confidence that this book will be in the mainstream debate in the United States.

Frel: A lot of what you're taking on in The Shock Doctrine is a concept that is fused in deep into a big part of the American psyche -- that "the free market" and "free enterprise," which we don't typically debate or condemn in the mainstream but are to blame for a lot of the things the public does discern as problems, like our healthcare system. But how do you get people to see that they are being screwed by their own dominant economic beliefs?

Klein: It's actually not that hard. The hard part is getting past the media wall.

Frel: At your U.S. book launch on Monday you talked about getting past the "intellectual police lines" that prevent discussion.

Klein: That's a different kind of situation. In Britain, it's a mainstream book being debated on the BBC, the Times of London, the Guardian and so on. It's being dismissed in part -- part of the discussion is an attempt to dismiss it. When I was talking about "intellectual police lines," it was in reference to the kinds of questions I was getting from mainstream journalists in Europe and in Canada. But in the U.S., I would say that's this is not really the issue -- it's whether you get access at all.

Frel: Do you think that it's because in the States, there isn't really any debate about alternatives to our economic system in any form? In Europe, where your book has already been released, there is at least the residue of a public debate that is willing to debate fundamental questions on economic systems and the social contract.

Klein: In most parts of the world, it's easier to even identify the radical policies of capitalism as contested territory, as something to debate. Whereas in the United States, these policies are the air we breathe; they are invisible almost because they are so hegemonic. For example, when I talk about privatization in Canada, people understand what that means -- it's about the drive to privatize our healthcare system and our education system, and there is a very clear grasp in the public mind about what the public sphere actually is. People understand there that this is something to defend against -- that there is something to privatize, while in the U.S., the agenda to privatize has succeeded so fully that these ideas seem more abstract because the idea of the public sphere is almost abstract.

When I'm talking about these ideas in France or the U.K., people know what "public" is. There are large parts of their life that exist within a nonmarket space.

Frel: So do you think it's an issue here in America where people don't want to consider these questions or are unable to?

Klein: I think it's the issue of the media line, and there are a lot of issues around it. It's very hard to have discussion anything outside the parameters of partisan politics in this country.

Frel: It's been my experience that it's not always the issue that the media is preventing discussion, but rather that the media working on behalf of the public's general desire not wanting to get into an issue. For example, this Monday, AlterNet ran article about the recent report that 1.2 million civilians have died violent deaths since the U.S. invasion. It was our top story, and the number of people who read it (24,000) was far lower than we expected.

Klein: Really? And that's a progressive audience.

Frel: It seems to me that it's this kind of a phenomenon that has media, including the corporate media, acting on behalf the audience's "intellectual police lines."

Klein: I think it's a vicious cycle. The media acts as an amplifier.

Frel: It's also responsive to the interests of the audience.

Klein: It is, but look at Lou Dobbs. Here you have a CNN news anchor who makes a concerted decision that he is going to put the disappearing American middle class and the effects of outsourcing on TV every night, and he's going to use his pulpit to drum up outrage, except that he decides that he's going to direct that outrage to the weakest people in society, to immigrants. But what's interesting about that, talking about outsourcing, talking about free trade, talking about the middle class -- any media outlet in the past 20 years could have done a story on that, giving the audience permission to have outrage instead of ignoring it or normalizing it, and saying this is just the way the world works. Lou Dobbs made the conscious decision to make his show a platform for outrage, and people were attracted to it because they really are upset, and they had it validated back to them.

I think the same thing could happen with Iraqi casualties if you had the media saying night after night that this is a scandal and really put a human face on those deaths.

Frel: Your book may encounter resistance at the mainstream level here in the States, but there is an audience of progressives and people who consume alternative media who are certain to embrace it. How does your book speak to their sensibilities, and how do you think they will receive it?

Klein: The book is an attempt to front burner the economic project and the economic ideology that I think is so much at the root of the front-page stories of our time: climate change, preemptive war, the resurgence of torture. I believe we need an analytic framework, and I think the book provides one -- not the only one, but anything that draws connections -- I think that progressives and readers of alternative media aren't going to be shocked by the information in the book. The hope is that the analysis is empowering. I know as a reader what's valuable is having connections made -- you're often bombarded with information in an analytic vacuum you can feel terribly hopeless, but when you make those connections, even when the connections are grim, you're more oriented.

As a writer, I'm very pleased with the reception to the book. Already we've got people writing into the website citing examples of disaster capitalism: "Look at what's going on in Greece, they're handing over land after the forest fires. Look at what's going on in Peru." All you can hope for as an analyst is that people read the newspaper better.

Frel:And you have a daringly simple solution for events of disaster capitalism that you identify, which I summarize as: Society should be informed and aware of what governments are trying to do to them after a catastrophe and apply this lens of analysis to their living context.

Klein: Shock only works if you don't know it's happening to you. Shock is a state of disorientation, which happens when we can't match events with analysis. For me, just understanding how shock affects our brains and that there is a philosophy of how to exploit that opportunity and push through economic policies people wouldn't normally accept in that window of time -- just realizing that makes you more resistant. But this is not my solution. I provide examples in my book of societies that have learned from their history when they were exploited in moments of shock, and delegated authority to figures of security that promised to take care of them. Because they have learned those simple lessons, they've become more shock resistant. But it does require looking at history without the blinders of denial.

In the sense that the book is an alternative history, I do hope that it helps people become more oriented, both in terms of more connected to our recent past, our pre-9/11 past, and more aware of what is happening in a moment of crisis or disaster.

The timing of The Shock Doctrine's release in Canada is very relevant here because it just hosted a summit with George Bush and Mexican President Calderon to meet with Prime Minister Steven Harper to talk about the Security and Prosperity Partnership of North America (SPP) which is basically like NAFTA-plus -- NAFTA plus security issues. The SPP is an example of the shock doctrine I outline in the sense that this was an agenda that would have been unspeakable in terms of integration with the United States before 9/11, and in the panic after -- in that shock -- the SPP agenda moved forward in technocratic circles, and it was presented as a done deal.

Once Canadians began learning about the SPP, they started rejecting it, and then they had this summit, where it was announced that, "Don't worry, nothing's going to happen here." But they said in the final press conference at the summit in Montebello, Quebec, at the end of August that the one exception that they would push for the SPP to be pushed through is if there's a disaster -- if there's an avian flu outbreak or a terrorist attack or a natural disaster -- then they would implement tightened integration between security forces in all these countries.

In Canada this was front-page news -- in the U.S., it wasn't reported on. When my book came out a week later people saw the connections immediately. They realized that what the Canadian government was saying was, the next time there's a disaster, we will use it as a moment of opportunity to push through these policies that you're rejecting where there isn't a disaster going on. It's incredibly naked.

Frel: There's an issue that I've seen a lot of critics and journalists already getting into about your book, and I've seen that you have a good term already to explain it. You don't argue that economic elites try to cause disasters they reap the benefits from, rather that they have "acute intellectual disaster preparedness" -- they are only cynical enough to take advantage of catastrophe.

Klein: I think that's right. The think-tank infrastructure in this country is organized to leap into the chasm right away after disaster has struck. The Heritage Foundation and the American Enterprise Institute stockpile free market ideas in the way that people stockpile canned goods. I don't say that anyone is causing these disasters for their benefit, but in the book I do say that if there's anything the market delivers on is a stream of increasingly intense disasters. I think the current economic model in America is a slow-motion disaster.

Now we're at the intersection of a weak public infrastructure that has been starved for two and a half decades and increasingly heavy weather, thanks to climate change, which I believe has a lot to do with this pursuit of short-term growth that is at the heart of the economic model, and we're going to have more and more of these disasters. If we aren't careful, each of these disasters offers the opening and a rationale for more disaster capitalism.

Frel: An economic feedback cycle, like the one scientists are warning about the compounding power of the effects of climate change.

Klein: If there's one thing we don't need on this planet it's disasters, because disaster capitalism will keep coming.

Frel: Since capital is not monolithic and has competing interests among economic elites, it seems as though the disaster capitalism model would have taught some of its adherents by now that it doesn't work in the long term, or at least have some elites who would fight against it. You write extensively on the free market laboratory implemented in Chile when Pinochet took over, which of course was a failure. Isn't there resistance to disaster capitalism at the levels of economic power and government that institute them?

Klein: Yes. In the Chile chapter I talk about how the country's manufacturing sector was furious that cheap products were flooding into the country, that people who were making the money in this case were the people involved in speculative finance. There are absolutely these competing interests. If you look at the Bush administration, this is an administration that is particularly tied to the disaster capitalism complex: the arms dealing, homeland security, pharmaceuticals that treat pandemics and the oil industry, which benefits handsomely from each and every disaster.

Frel: There's also the phenomenon that the way the capital markets work is to search out weak points and opportunities in any circumstance in which they arise.

Klein: You can depend on capital to arrive at any vacuum and exploit any weakness. It is not the case that politicians need to facilitate this and fund it lavishly with taxpayer money. What is disturbing is the seamless alliance between government and capitalism.

Frel: You end the book with a quote from a declassified letter from Kissinger to Nixon where he says that the real threat of Allende wasn't what he was telling the public -- that Allende wanted this totalitarian system. Kissinger wrote that the real threat was the problem of social democracy spreading. What was so scary about this idea to him?

Klein: I think it's always been the scary idea, because it's so popular. People like to have consumer choice, and they also like to have basic necessities protected and to have a life with dignity: housing, water, electricity, healthcare. And with democratic socialism you can actually have both: a mixed economy that has an essentially controlled economic model but that has room for diversity within it and has these social guarantees. And that's always been the bigger threat to a radical vision of capitalism than totalitarian communism, because people don't actually like living in communist countries, but they really do like living in democratic socialist countries.

Naomi Klein's works:
-2000 No logo
-2002 Fences and Windows
-2007 The Shock Doctrine: The Rise of Disaster Capitalism

Naomi Klein's official website
 
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