This is Chapter 5 of Erich Fromm’s The Sane Society. I’ve had this on my bookshelf for quite a while and wasn’t sure how a 70-year-old book could have so much relevance, but it does. Granted, some of it is irrelevant, a victim of the period it was written. This happens.

Sidebar: Whilst praising Freud, Fromm also calls him out, essentially accusing him of projecting his mummy-daddy issues onto the world at large. When I first encountered Freud’s work in the 1980s, it was already largely discredited. Some of what should have been wasn’t. Freud’s work as a psychoanalyst heavily overshadowed his other contributions. In fact, Freud offers some strong philosophical insights into society and civilisation. He’s not all about cigars and dreamscapes.

What strikes me about this chapter is the historical perspective it provides on capitalism. I’m an academic economist. I taught undergraduate economics for the better part of a decade. I’ve read (and recommend reading) Marx’s Capital firsthand.

Fromm adds additional details here. Firstly, he notes that the capitalism that marked the early days of the Industrial Revolution—the seventeenth and eighteenth centuries—differed from that of the nineteenth and twentieth centuries. The earlier period still had cultural and moral tethers that became frayed or lost in later periods. Without regurgitating the chapter, I cite some themes:

“this underselling practice is grown to such a shameful height, that particular persons publicly advertise that they undersell the rest of the trade.”

People were not very keen on price cutting as a competitive mechanism.

They also note the unfair competitive advantage of the monied elites who could buy materials in cash instead of credit and could thereby undercut prices, who would have to account for paying interest rates or markups on credit.

Whilst in the twentieth century, regulating undercutting is seen as protectionism, the earlier centuries had no problems defending merchants. We do have laws on the ebooks that prevent dumping, but these are rarely enforced, and when they are, it’s a political rather than economic statement. In practice, but done in the name of economics are politics in the same manner as science was used as cover to implement policy during the COVID-19 debacle.

Montesquieu says “that machines which diminish the numbers of workers are ‘pernicious’.” This sentiment echoes the current sentiments about robotics and artificial intelligence.

Nineteenth-century capitalism saw man as the measure of all things supplanted by capital. This is the capitalism Marx rails against—profits over humanity and society, the pursuit of local maxima at the expense of global maxima. This is also where the goal of hypergrowth and growth for growth’s sake came into vogue, ushering us into the Modern Age of Modern ideals—science, progress, order, and so on.

I won’t exhaust the chapter here, but for what it is, it’s a relatively light read. Whether I comment on later chapters depends on whether they engage me. Cheers.