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Robert Reich's Supercapitalism:

As Adam Smith first described clearly, individuals who pursue only their own narrow interests in a competitive system often inadvertently create widespread social gains. But not always. Unlike many of his modern disciples, Smith was keenly aware of the invisible hand’s limitations. Individual and social interests often diverge, he realized, and in such cases, greater competition makes matters worse. If a firm can cut costs by removing the filter from its smokestack, for example, it will feel greater pressure to do so when competition intensifies.

If our social ills are indeed rooted in increased competition, our only recourse, Reich argues, is to change the rules. Denouncing greed is simply wasted energy. If we want less inequality, we must make taxes more progressive. If we want cleaner air and water, we must adopt more stringent environmental laws.

Reich’s narrative begins with his account of the “not quite golden age” — roughly, the three decades following World War II — in which limited competition enabled large companies to earn high profits. High profits, in turn, enabled unions to bargain for high wages and benefits. Legislators, who were less influenced by corporate cash in those days, passed laws in the public interest.

Things changed when the Internet and other new communications and transportation technologies enabled the economy’s most able producers to extend their reach. Many established firms were swept away.

At about the same time, financial deregulation increased the influence of capital markets on corporate behavior. Wall Street’s message to chief executives was “Slash your payrolls or we’ll buy your company and hire someone who will.”

...The main thrust of Reich’s argument is right on target. Those who seize their opportunities in highly competitive environments tend to survive and prosper. “To confuse greed with opportunity,” he writes, “is to confound desire with availability.”

The point is that almost no one, with any power, advocates for citizens (i. e., the common good) and that this calls for more citizen-based advocacy and restrictions on activity like lobbying and corporate contributions to campaigns...