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November 2009 / vol. 6 issue 3

Tiny violins play sad, sad songs for the people in Moore's new film.
Tiny violins play sad, sad songs for the people in Moore's new film.
Illustration by richard badgett

Capitalism: A Sob Story

Michael Moore fails to capitalize on opportunity

Capitalism: A Love Story, the latest offering from oft controversial, baseball-cap-wearing documentarian Michael Moore, opens with a new modern vignette: the hard-working, middle-American, blue-collar Joe who has fallen upon hard times. He has fallen prey to predatory lending practices, and as a result his home is currently under foreclosure. It is a sad tale, to be sure, and Moore’s capitalization on pathos — which has become a hallmark of his filmmaking — does not disappoint. In fact, the first hour of the film is little more than a continuous battery on the sympathies of the audience.

Excessive emotional appeal is not the culmination of Moore’s abuse of documentary integrity. Throughout the film, correlation is used to imply causation with a complete disregard for rationale that approaches recklessness. For example, President Ronald Reagan’s rise to power and the increase in bankruptcy, credit card debt, and the volume of anti-depressant prescriptions are presented in parallel, as if the former implied the latter.

Without any attempt to support his results quantitatively, aside from a snappy time graph with Reagan’s mug in the corner, Moore manages to attribute what he asserts to be the perversion of capitalism to rising corporate greed and tax cuts since Reagan came into power.

Moore also attempts to argue that democracy is a viable alternative to capitalism. Effectively, Moore provides an irrelevant solution for a problem whose existence is never quite proven.

That is partially the fault of the director’s adherence to a practically indefensible thesis and partially because the defense of his thesis is weak and filled with logical connections that don’t fit. Moore’s whole argument is based on presuming that corporations are evil and interested solely in conducting evil policies to cultivate wealth through out-of-control greed.

The unfortunate fact is that those faults, tricks, and huckster’s compromises serve to detract from the later, more important points that Moore makes, which he actually makes well. For whatever reason, as is symptomatic of most of his previous works, Moore always falls back upon old standards of cheap debate.

Ideologues on either political side pander to the lowest common denominator in order to attract support from those with opinions on the fringe. It is necessary to state, outright, that Michael Moore’s firebrand filmmaking is no different.
If one is able to suffer through the saccharine sympathy that composes the first half of the film and can look past the leaps of logic and radical claims, a reward awaits. A surprisingly robust and well-made thirty or forty-five minutes of the film focus on the 2008 federal bailout of the financial industry.

On that foundation a better film could have, and should have, been built. Moore presents the facts in a straightforward way and provides an interesting look into the frantic course of events. He highlights how major players from investment banks helped shape the legislation to suit their needs and realize their desired outcomes.

The speeches from members of Congress highlight a frustration, often overlooked by the news media, that resonates with the public at large.

What is most notable is that, instead of trying to dumb things down, Moore gives his audience access to as much of the story as is required to form their own opinions. Moreover, the facts are interesting and engaging and present information that many may have missed in the mess surrounding the economy’s collapse.

Americans need to have an opinion on this issue, and Moore provides a way for people to develop informed opinions.

It is tragic to imagine what the film could have been. Had Moore been able to shelve the sensationalism and realize that the situation demanded directorial restraint, the final product would have been far more relevant.

Buried under the relentless pathos is a great film about one of the most important and divisive issues in recent history, an issue that has yet to receive sufficient investigative treatment. Moore had the opportunity to provide that treatment and failed.

Essentially, Moore’s intent, as is generally true of his larger body of work, is to reduce complex issues to simple moral evaluations in an effort to make his thesis more palatable at the box office.

Moore ends the movie with a plea to the like-minded to join him in his fight against the injustices he attributes to capitalism. He seems sincere in this request, but ultimately it does not resonate.

So much has been sacrificed to force a moral imperative on the issue that little integrity remains for such a high minded appeal. The fact is that Michael Moore will never make an important film unless he realizes that doing so will require more respect for the intelligence of the audience. 

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  in November 2009 issue

Story Comments

  1. (4 Nov '09) Ilikethepopethepopeisdope says,
    I'm sure Michael Moore will be donating all of the profit from this movie to starving people in the third world, right....? Surely he isn't driven by a profit motive, and surely his movie was financed entirely by charitable individuals with no interest in making a return.

    Michael Moore is a sack of shit.
  2. (6 Nov '09) Roger says,
    Sir, your eloquence is an inspiration to us all. Have you considered becoming a columnist at WorldNetDaily?
  3. (9 Nov '09) Jordan Hicks says,
    "You keep on using that word. I do not think it means what you think it
    means.” —Mandy Patinkin as Inigo Montoya in The Princess Bride (1987)

    Capitalism?

    In 2008, a shock hit Americans. The economy had been in shambles for several months, but in autumn, the house of cards began to tumble. In response to the crisis, many attempted to theorize its cause. A great many argued that the downturn reflected the shortcomings of free-market capitalism. In Michael Moore’s latest film, Capitalism: A Love Story, Moore adheres to the cultural myth that unrestrained capitalism caused the financial crisis and, consequently, necessitates government to play a greater role in the economy through further regulation and intervention. Although Moore liberally uses the word “capitalism” throughout the movie, it is apparent that the word, as Inigo Montoya said in The Princess Bride, "doesn't mean what he thinks it means." Indeed, Moore presents valid issues regarding the financial crisis, e.g. the close relationship between the corporations and government and the casino mentality of Wall Street. However, Moore fails to make the connection between the causes and the outcome of the financial crisis.

    The definition of capitalism Moore provides to his audience comes early on when he remarks, "Capitalism: a system of giving and taking—mostly taking." True capitalism relies upon one simple principle: that all exchanges of property warrant the voluntary consent of all parties. Private ownership of property and competition—the other two components of capitalism in most traditional definitions—are actually results of this foundational principle (Capitalism: The Unknown Ideal). What Moore mistakes for capitalism is actually soft fascism, also know as corporatocracy, which has gained momentum in the United States.

    Benito Mussolini succinctly stated, “fascism should more appropriately be called corporatism because it is the merger of state and corporate power"(Rense). Indeed, corporate domination of the democratic process by means of campaign contributions blocks the emergence of individuals willing to defend the interests of the electorate. Few Congressmen hold loyalty to their constituents because the plurality of the hard money contributed to their campaign comes via corporations with the intention of buying votes. Goldman Sachs alone spent forty-three million dollars on lobbying and campaign contributions since 1989 and donated six hundred ninety thousand dollars to Obama’s campaign, making them the largest contributor (ABC News).

    Lobbyists subvert the integrity of the executive and legislative branches of government throughout America by buying influences and votes. On the campaign trail, Barack Obama promised change from the Bush administration by keeping lobbyists out of his administration. However, continuity, not change, occurred and within two weeks of Obama’s inauguration, his administration hired twelve lobbyists (Politico). Of these twelve, one noteworthy of attention is Mark Patterson, who until April 2008 lobbied for the financial giant Goldman Sachs, who now resides as Treasury Secretary Timothy Geithner’s chief of staff. Patterson participates in influencing the allocation of the Troubled Assets Relief Program (TARP); interestingly, Goldman Sachs received ten billion dollars from TARP. Additionally, on 27 January 2009, Geithner issued rules restricting contacts with lobbyists—and then hired Mark Patterson on the same day. Patterson’s appointment marked the second time in Obama’s first week in office that his administration needed to explain how it is complying with its own ethics rules as it hired a dozen lobbyists. Is this a conflict of interest? Certainly. Moore depicts these close relationships between government and Goldman Sachs as an unrestricted form of capitalism, fueled by the marriage of government and business. However, this marriage serves only to perpetuate the casino mentality of Wall Street, especially Goldman Sachs, by creating an environment appropriate for such gambling.

    Portrayed in a bemusing segment, Moore’s risible attack on Wall Street’s casino mentality attempts to explain the “crystal meth” of finance, derivatives, by working out a derivatives formula that offers no insight. He fails to state the sheer immensity of the derivatives market. Derivatives, sold on a bright-shining lie that their existence offered protection and efficiency in the stock market, in fact, allow for utterly insane gambles because derivatives are contracts whose value stems from the performance of an underlying asset, meaning derivatives have no intrinsic value of their own (All Business). Derivative markets operate on the assumption that what has happened in the past will happen in the future. If a derivatives trader sells an individual a derivative contract with Intel for one dollar, with the Intel stock worth one hundred dollars, and the trader perceives that the Intel stock will increase to one hundred and ten dollars, the individual’s derivative will increase to ten dollars if the stock increases to one hundred and ten dollars (Max Keiser). In comparing the derivative to the stock, the derivative owner obtained a one thousand percent increase while the owner of the stock gained a mere ten percent.

    For the past twenty-five years, this system has perpetuated to multiple layers because Wall Street began trading derivatives on derivatives and then derivatives on derivatives on derivatives etc., which is why there are nearly one and a quarter quadrillion (thousand trillion!) dollars in derivatives globally (Silicon Valley Watcher). Many of the financial firms on Wall Street were leveraged at around fifty-to-one based on derivatives, meaning that if the equity (value) of the company decreases only two percent, the equity drops to zero. Given the boom and bust cycles of the economy caused by the easy credit and low interest rates of the Federal Reserve, betting that the markets will not explode in the future amounts to speculation, not finance.

    When the recession began, caused by the collapse of credit derivatives on home mortgages, the screaming hyenas on Wall Street knew they would die out unless they remained solvent. Government—feeling obligated to help financial institutions due to their lobbying and Congressional contributions—declared the behemoths too big to fail and declared the creation of the Troubled Assets Relief Program (TARP). Moore’s outrage over the Wall Street TARP bailout and subsequent bonuses given to executives of financial firms reaches a tipping point when he walks into AIG’s office building. Holding a moneybag, he asks for Main Street’s share in distrust of Wall Street. Again, Moore correctly identifies the problem because the bailout legitimizes the practices of these financial institutions and encourages their exacerbation; the bailout is analogous to a parent giving their fifteen-year-old car keys and alcohol, expecting responsibility.

    If government did not provide these bailouts, the free market would put an end to the speculatory gambling practices of Wall Street by letting them go under. When government goodies surpass market discipline, systematic risks flourish. Obama proposed entrusting the task of “systematic risk regulator” to the Federal Reserve (Seeking Alpha). Such a proposal is like making Keith Richards head of the DEA because decades of erroneous interest rate decisions by the Federal Reserve, especially in recent years, equate as fuel to the risk fire. In short, if free-market capitalism determined interest rates, none of the excesses in the credit and derivatives markets would have been remotely possible.

    Typical of his movies, Moore’s muckraking identifies real injustices and expresses appropriate outrage. Moore holds good intentions; however, throughout his career he has made the mistake of misidentifying the cause of the problems he depicts so poignantly on the screen. Moore diligently believes in capitalism in this documentary because he presents arguments that express concern over the increasing corporatism, concerns that individuals who believe in true capitalism already voice. The taste of laissez-faire capitalism is unknown in America because the allocation of capital comes from the Federal Reserve, instead of savings, and regulations from Congress inhibit the creation of a greater number of and expansion of prosperous wealth-generating businesses (Ron Paul). At the end of his film, Moore asks Americans to join him in a cause to seek justice via the destruction of corporatism—what he calls capitalism. If, however, Moore truly wants to see justice restored in America, along with equal opportunity for all Americans, he should end his misguided attack on capitalism and join the movement to end the Federal Reserve and the expanding corporatocracy.

    Works Cited

    Capitalism: A Love Story. Dir. Michael Moore. Overture Films, 2009. Film.

    Cummings, Jeanne. “Geithner enlists lobbyist as top aide.” politico.com. N.p., 27 Jan. 2009. Web. 28 Oct. 2009. .

    Foremski, Tom. “The Size of Derivatives Bubble = $190K Per Person on Planet .” http://www.siliconvalleywatcher.com/. N.p., 16 Oct. 2008. Web. 28 Oct. 2009. .

    Keiser, Max. put & call option derivatives explained by Max Keiser. 13 Sept. 2009. youtube.com. Web. 29 Oct. 2009. .

    Kirwan, Jim. “Corporatocracy, Corporatism, Fascism.” rense.com. N.p., 24 Jan. 2005. Web. 27 Oct. 2009. .

    Patel, Avni, and Brian Ross. “Congress Has 43,457,362 Reasons to Help Goldman Sachs.” http://abcnews.go.com/. ABC, 26 Sept. 2008. Web. 28 Oct. 2009. .

    Paul, Ron, and Ben Bernanke. Ron Paul questions Ben Bernanke on free markets vs crony capitalism. House Financial Services Committee Hearing. House Chamber of Capitol Building Washington D.C. 24 Mar. 2009. ronpaul.com. Web. 29 Oct. 2009. .

    Rand, Ayn. Capitalism: The Unknown Ideal. N.p.: New American Library , 1967. Print.

    Schiff, Peter. “Back in the U.S.S.A.” seekingalpha.com. N.p., 21 June 2009. Web. 30 Oct. 2009. . Peter Schiff, President & Chief Global Strategist of Euro Pacific Capital (http://www.europac.net), is one of the few non-biased investment advisors (not committed solely to the short side of the market) to have correctly called the current bear market in U.S. dollar denominated assets before it began and to have positioned his clients accordingly.

    - - -. Crash Proof: How to Profit From The Economic Collapse. Hoboken, New Jersey: Wiley & Sons, Inc., 2009. Print.

    Wiseman, Paul, and Pallavi Gogoi. “Shedding light on derivatives.” allbusiness.com. N.p., 13 Oct. 2009. Web. 29 Oct. 2009. .

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