" Capitalistic America"

In making the United States Constitution, the founding fathers took great pains in designing a document which might prove resilient to the upcoming times. Though in no way possible they could foresee-the challenges that social progress would posit in the future, they knew that political representation of the people and distribution of power among them were the core of the American democratic system. Power, the American people learnt, can make the difference between a democratic and a totalitarian state. With the emergence of American business, however the principle of representative government has been under increase debate since the postwar period as a result of the different benefits received by the business and labor communities from the diverse government approaches to economic legislation. Although Thomas Byrne Edsall argues strongly that government economic policy is in the hands of a small ,wealthy and powerful elite, I shall adhere to Professor David Vogel's, persuasive contention that the power of the business community is not continual but, cyclical because it fluctuates with the American economic situation, which in turn is influenced by other social, important forces. The elitist position, represented by political reporter, Thomas Byrne Edsall, contends that the business community is in control of the American economic agenda. Their ascendancy to power was gained by the new turn in economic policy towards the right, when resolving the economic crisis of the 1970's and by manipulating to their favor the new way of doing politics in America. For, Edsall, the new policy to resolve the 1970's crisis by cutting taxes on income derived from capital, and by reducing the programs for the poor, created the impetus of the business community to continue in seeking change on economic policy. The wealthy elite found the ways to get favorable legislative reform in the new structure of polities which had broken away from the classic trend since the New Deal. Edsall, claims that the public official became politically disoriented without the traditional support given by the local and national leaderships of the parties. As a result, grass-roots lobbying, which makes political activism through letters, telephones and the media, was born. Corporate America through its network of plants, suppliers, retailers, and employees, fit nicely with the new political system, and began an alignment of all their power to court the politicians in Washington. Another factor from which the business community  took advantage, argues Edsall, was in the new political action committees (PACs). Through them, the elite class collected big amounts of money used for political campaigns, activism, and founding of private research groups; the latter used to defusedtheir economic ideas through intellectual America.  All these mediums were effectively channeled by the business and well-to-do sections of society to fight back the darkening reputation caused by Watergate to their Republican party, the strong smell of corruption in corporations, the social revolt against the Vietnam War, supplied by corporate products, and the trend of social reform in favor of consumer and environmental groups. Once the public opinion was washed out of their prejudice, explains Edsall, the wealthycommunity coalesced their sharpened political skills to initiate the big political economic reform favoring their interests during the period of 1977 to 1985. the political trend towards conservative economic policies has not changed and is unlikely to change, even with control of the government by democrats, warns Edsall, as long as the political process remains so distorted by the new sophistication of the wealthy class to influence the public perception of the American economy.  In contrast to the orchestrated manipulation of economic policy by the republicans and the business community seen by, Edsall. Professor David Vogel, advocating the pluralist position, argues that business influence of the American economic policy comes in cycles. Though he concedes that the power of business has been more visible throughout this century, he explains that the leading position of business during that time has been fragmented. Professor Vogel, seen several factors which, besides playing an important role in the American economic activity, help to hold the balance of political representation between the wealthy and the middle class and the poor in check. One of these factors is the performance of the American economy. When the country sinks into a recession, legislative reform favoring the business community is prevalent; once the economy is considered in good health, their strong influence is lacking. A second factor, shared with Edsall, is the changing structure of American politics. However, Professor Vogel, see not an elite manipulation of the system, but, the inevitable adaptation of all the political groups to the sophisticated new systems.  A third factor inherent in the economic structure is the interrelationship among its economic building blocks. In other words, business political activity does not take place in isolation. With the exception of the five year period between 1977 and 1981, the divergent industries and corporations clash inevitably in their economic goals.  Professor Vogel's, approach to the working of American economic policy has several strengths. While the elitist perceive the breakdown in policy in the 1970's from the trend since the F.D.R. administration as a conservative finesse, the pluralist see these  change as the government response to the new economic perspective. That is, the distribution of the tax burden favoring the rich and troubling the poor, is not a sympathetic alignment of republicans and the business community, but, a government reaction to the challenges of that time.   In order to fight back inflation, the declining of wages and family  income, and the competitiveness of foreign products, the government reduced the corporate taxation to increase the availabilityof money in the market for investment on more machinery and technology, thus increasing productivity, jobs, savings, and revenue. That, the influence of the business community comes in cycles and depends on the long-term strength of the economy is buttressed by the relatively small economic legislation done by even republican administrations, in favor of elites, in times of effective performance of the American economy.   A second reason for adopting Professor Vogel's, pluralist theory has to do with the new structure of the American political system. Contrary to the position advanced by Mr. Edsall, the sophistication of the new system can be used by the different political groups, as indeed the consumer and environmentalorganizations did in the 1970's to create protective regulation of their interests. In fact, this new way of doing politics was not contrived by either group, but was created and sharped by contingencies popping out from technological and social developments. Moreover, although congressman can be influenced more effectively than before through grass-roots lobbying, electronic mail, and the rhetoric of private scholarly groups financed by the business community, the elitist forget about the presumptive integrity of our politicians in their duty to legislate according to group representation.  Finally, Edsall, analysis of the working of the American economic policy is simplistic and superficial. Professor Vogel's, exposition of capitalistic America reveals that business works effectively only on rare occasions, as when they are facing the threat of a recession caused by global economic and political forces. Once economic recovery is attend and sustained by a healthy economy, the business national coalition gradually disintegrates to give way to more particular interests of the differnce companies and firms. As when the business community underestimated the expenditure that the Occupational Safety, and Health Act and The National Enviromental policy Act would cost them on implementation. Happily, the legacy of the Founding Fathers, is as strong and effective today as it was yesterday.