American Capitalist

erosion

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American Capitalist
Financial Post
November 10, 2007


The movie American Gangster is the true-ish story of Harlem drug lord Frank Lucas. A bright, ruthless and charming country boy-turned-Superfly, Lucas got temporarily very rich by cutting out the middleman and going straight to the poppy fields of Southeast Asia. During the Vietnam War, he smuggled high-quality heroin in military coffins before cutting and distributing his havoc-wreaking "Blue Magic" to the black community.

Despite the presence of Academy Award winners Denzel Washington as Lucas and Russell Crowe as his cop nemesis, Richie Roberts, this is not a particularly great film. What makes it a particularly telling film, however, is what it -- and its reviews -- say about the image of capitalism in North American popular culture.

American Gangster is filled with talk of business "principles," delivered with an indeterminate amount of irony. Lucas lectures on the importance of "honesty, integrity and hard work." He stresses serving the consumer, to whom he offers twice the quality at half the price (thus shuffling him or her four times as quickly toward the grave). He is obsessively concerned about his "brand" and with "copyright infringement."

This insult to the Invisible Hand is served up with a liberal helping of Black History Month-style condescension. Russell Crowe's character suggests after collaring Lucas that traditional gangsters hate him because he represents black "progress." Some progress.

What is more disturbing is that so many reviewers have accepted the notion that what Frank Lucas practiced was "capitalism," and that capitalism and gangster-ism are pretty much joined at the hip.

According to John McCarty, author of Bullets over Hollywood, "Gangsterism is capitalism run rampant ? It's that old entrepreneurial spirit." Britain's Guardian (hardly a surprise) suggested that the gangster genre "has long since established itself as an endlessly flexible master-metaphor for American upward mobility, ethnic aspiration and zipless, untrammelled, laissez-faire capitalism." According to David Denby in The New Yorker, Lucas' "ascent" is presented "as a long-delayed victory of black capitalism." The Philadelphia Inquirer's review suggested that, "Like most mob films, [American] Gangster is a study in extreme capitalism." According to The Dallas Morning News, "Frank Lucas is a stone killer. He's also a thriving capitalist." The Columbus Dispatch noted that Lucas built "a capitalist empire." The Santa Fe New Mexican identified Lucas' "success" with "operating in the old-fashioned tradition of can-do American capitalism ? You couldn't ask more from Henry Ford."

Henry and Frank. Soul brothers in crime.

According to The Chicago Sun-Times, Lucas "cornered the New York drug trade with admirable capitalist strategies." Newsweek wrote that the movie "posits the pusher as a triumphant example of black capitalism." People magazine wrote that American Gangster "shows how, by applying capitalism's basic principles, Frank Lucas? came to dominate the New York City heroin trade."

The Chicago Sun -Times opined that "the moral core of the movie ? is a two-pronged look at the corrupting power of capitalism." A segment on National Public Radio described the film as "The capitalistic dream run amuck." The New York Sun called it: "The story of organized African-American crime/capitalism." The Chicago Tribune dubbed the film "addiction capitalism, '70s style." The Detroit News even sought to put a positive spin on the capitalism/crime connection: "Sure we're shown some of the ugly results of the heroin traffic that Lucas starts," its critic wrote, "but that's balanced by the old entrepreneurial spirit of American capitalism. Lucas is basically a tough competitor in a dirty business, working his way up from the streets."

Balanced! Heroin. Soap powder. What's the difference?

The notion that capitalism's basic principles might include real honesty would obviously be considered laughable to these reviewers. However, the thesis that a drug-pushing murderer might represent a signal example of capitalist "principles" is treated as mere conventional wisdom.

British historian Paul Johnson has acknowledged that capitalism is motivated by a good many of the alleged "seven deadly sins" (except sloth), but he never suggested that it might be squared with contravention of the sixth and eight commandments.

Frank Lucas was a murderer and a thief, albeit a charismatic one. He brought death and desolation to many thousands of people in, and beyond, the black community. His self-justification (which emerged in interviews with New York magazine's Mark Jacobson, on which the movie was loosely based) was that, as a black man, he couldn't even have gotten a job as a janitor on Wall Street. In fact, the movie The Pursuit of Happyness (sic) told the story of another black man, Chris Gardner (played by Will Smith), who not only overcame the toughest of conditions to make it on Wall Street, but wound up with his own brokerage company. Strangely, however, I can't remember the word "capitalist" ever cropping up in that inspiring film, although it certainly did in the reviews. The "right-wing" Daily Telegraph described it as a "thinly veiled apologia for rat-race capitalism." The Daily Mail described its "blind faith in the benevolence of capitalism" as "creepy."

Are you beginning to see a pattern here?

That criminals might use business methods is no more an indictment of capitalism than the experiments of Joseph Mengele were an indictment of science. Capitalism is not a perfect system, but it is by far the best the world has ever seen, and appears the only one compatible with personal freedom and material well-being. If it is sloppily considered the bedmate of crime, what chance does it have against the Naomi bin Ladens of this dangerous world?

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So he's saying that since Frank Lucas sold heroin his work couldn't be deemed as capitalistic? Or that praise is going to the wrong type of capitalist?

Get off your high horse dude. He applied basic business principles to heroin distribution. That's it. It doesn't make him a business expert, but it was innovative at the time. Especially for black gangsters.
 
article said:
What makes it a particularly telling film, however, is what it -- and its reviews -- say about the image of capitalism in North American popular culture.
Haven't seen it but have read about it, and seems the basic principles are true capitalism, not the 'image of capitalism'.

article said:
American Gangster is filled with talk of business "principles," delivered with an indeterminate amount of irony.
lol okay, because it's an illicit market it can't use real business principles :\

article said:
Lucas lectures on the importance of "honesty, integrity and hard work." He stresses serving the consumer, to whom he offers twice the quality at half the price
exactly - principles didn't need to be called out in quote tags, these are clearly standard business principles.
article said:
(thus shuffling him or her four times as quickly toward the grave).
generalize much? user / = addict
article said:
He is obsessively concerned about his "brand" and with "copyright infringement."
more clear business principles.
article said:
This insult to the Invisible Hand
it'd be interesting if you actually explained your reasoning why this is an insult to the invisible hand. Based on what I do know of the movie, this was earlier on and was likely a very monopolistic situation (i'm imagining him to heroin as george jung to coke in blow), so no, it's not a pure market but to say it's insulting the invisible hand theory is retarded.

article said:
What is more disturbing is that so many reviewers have accepted the notion that what Frank Lucas practiced was "capitalism," and that capitalism and gangster-ism are pretty much joined at the hip.
and you're reasons why they can't be are....?
article said:
According to John McCarty, author of Bullets over Hollywood, "Gangsterism is capitalism run rampant ? It's that old entrepreneurial spirit." Britain's Guardian (hardly a surprise) suggested that the gangster genre "has long since established itself as an endlessly flexible master-metaphor for American upward mobility, ethnic aspiration and zipless, untrammelled, laissez-faire capitalism." According to David Denby in The New Yorker, Lucas' "ascent" is presented "as a long-delayed victory of black capitalism." The Philadelphia Inquirer's review suggested that, "Like most mob films, [American] Gangster is a study in extreme capitalism." According to The Dallas Morning News, "Frank Lucas is a stone killer. He's also a thriving capitalist." The Columbus Dispatch noted that Lucas built "a capitalist empire." The Santa Fe New Mexican identified Lucas' "success" with "operating in the old-fashioned tradition of can-do American capitalism ? You couldn't ask more from Henry Ford."

Henry and Frank. Soul brothers in crime.

According to The Chicago Sun-Times, Lucas "cornered the New York drug trade with admirable capitalist strategies." Newsweek wrote that the movie "posits the pusher as a triumphant example of black capitalism." People magazine wrote that American Gangster "shows how, by applying capitalism's basic principles, Frank Lucas? came to dominate the New York City heroin trade."

The Chicago Sun -Times opined that "the moral core of the movie ? is a two-pronged look at the corrupting power of capitalism." A segment on National Public Radio described the film as "The capitalistic dream run amuck." The New York Sun called it: "The story of organized African-American crime/capitalism." The Chicago Tribune dubbed the film "addiction capitalism, '70s style." The Detroit News even sought to put a positive spin on the capitalism/crime connection: "Sure we're shown some of the ugly results of the heroin traffic that Lucas starts," its critic wrote, "but that's balanced by the old entrepreneurial spirit of American capitalism. Lucas is basically a tough competitor in a dirty business, working his way up from the streets."
...and?!
article said:
Balanced! Heroin. Soap powder. What's the difference?
your moral hangup with drugs maybe? If the product wasn't heroin I'm sure you're opinion would be completely different.

article said:
The notion that capitalism's basic principles might include real honesty would obviously be considered laughable to these reviewers.
of course it would - one can make a very strong argument for greed being the true driving force behind pure capitalism (one already did, his name was adam smith..)

article said:
British historian Paul Johnson has acknowledged that capitalism is motivated by a good many of the alleged "seven deadly sins" (except sloth), but he never suggested that it might be squared with contravention of the sixth and eight commandments.
meh, list your commandments if you want to make a point, not everyone just knows them off the top of their head lol (if I'm not mistaken, a huge % of christians cannot name all of their commandments :\ )
article said:
Frank Lucas was a murderer and a thief, albeit a charismatic one.
doesn't stop him from being capable of capitalism.


article said:
If it is sloppily considered the bedmate of crime, what chance does it have against the Naomi bin Ladens of this dangerous world?
take your head out of your ass. These crimes (dealing) are solely moral crimes. I'm sure this author would define many alcohol companies as good capitalist examples, unless of course we were still in prohibition.

Bottom line is it's selling a product. The market is far less than perfect because it's an illicit market, but to say it doesn't follow the basic tenets of capitalism is just retarded.
 
that's one of the most retarded articles I've read in so long - am I just missing something or is the author honestly asserting drug dealing to not be an example of capitalism, seemingly because of a personal bias against heroin/drugs?
 
I wasn't even exaggerating in the least - that article pissed me off to no other. I don't mind those radical bullshit claims (well I do, but you know what I mean) when they're coming from the drug czar or the DEA - it's expected.

But to have someone try to deny that drug dealing is a capitalist venture, from a financial publication, is just fucking absurd and screams of the author's bias. The bottom line is she bitched and moaned dropping her idea that it's not capitalist, yet never provided a single solid argument why. The best two I can think of is that she mentioned customers can die and that there's not as much honesty - but those are really not, in any realistic ways, going to change the fact that it's clearly a capitalist market, albeit an illicit one.
 
shit, I feel like ranting more so ignore this cuz it may go nowhere. But let's look at drug dealing aspects to see how they compare to capitalism.

Hmmm, what attributes can I think of?

- quantity discounts at whole sale
- sophisticated market structure (manufacturer, wholesaler, retailer, end customer)
- branding
- contracts (the fact that they're enforced differently than normal markets is irrelevant, contracts are contracts)
- basic commodities bought and sold
- professional employees (nobody laugh, if you think big cartels have accounting 101 dropouts on their team you're sadly mistaken)
- competitive markets in which product differentiation is important


I'm not even going to touch upon the aspects that make it a far more interesting capitalistic venture, such as the fact that it's a wild west industry, that shipping isn't as simple as the best price between dhl/fedex/ups, but rather boat/plane/mules, and all of the other intricacies this illicit market has that a traditional capitalistic market will have.

Shit, you can even make the argument that it's MORE capitalist than a standard, legal business venture. You're not paying taxes and therefore not redistributing wealth, which is arguably a low level form of socialism (for instance, geico pays taxes and some go to the community - this is redistribution of wealth and is not in line with pure capitalism, whereas this is not a factor in the drug market). Further, a normal capitalist market is forced to adapt to its environment - the illicit drug trade has an adaptation challenge that is fucking WORLDS greater than any traditional commodities markets.


Just look at real life examples currently going on. US dollar falls, less drugs coming in. Higher profits in europe, more coke's going there. Cheaper transportation routes through western africa, new logistical efficiency acheived there. Sure, this isn't a capitalist market at all, it's... hmm she should've at least, if not saying why it isn't capitalist, given a better idea of the type of market she believed it really was. But that wasn't the case, she doesn't honestly believe it's not capitalist, her personal bias completely blinded her and she was not able to approach this in a cold, raw, economical manner, as she should if she's writing in a financial publication.
 
Hmm, I must have missed the dishonesty element of importing and distributing drugs. Was he lying that the heroin was actually H? Did he tell people it was free, then charge them later? Did he say it was health food and would make your dick twice as big? No, not really - he sold a product people wanted (and still want) to buy and use. No lying or dishonesty to that, to be honest about it.

Seems to me there's much, much more outright lying in the "clean" side of capitalism than in the drug world. Nearly every advertisement one sees in modern culture is selling a flat-out lie. We all know it's a lie and we adjust accordingly. There's even a phrase in business law that outlines this type of commonly-seen lying: "sales puffery." No kidding, it's an important concept in business law - look it up if you don't believe me.

There's an interesting issue lurking behind the intersection of illicit markets and capitalistic structures, but this article misses it entirely.

Peace,

Fausty

ps: Mengele was not a scientist - his "findings" were not peer-reviewed, were not replicated, did not address statistical requirements, and were not controlled effectively across variables. He was a torturer who put on a scientist's clothes, not a scientist. Even leaving aside the moral horror of his "experiments," he's no scientist.
 
Fausty said:
Seems to me there's much, much more outright lying in the "clean" side of capitalism than in the drug world. Nearly every advertisement one sees in modern culture is selling a flat-out lie. We all know it's a lie and we adjust accordingly. There's even a phrase in business law that outlines this type of commonly-seen lying: "sales puffery." No kidding, it's an important concept in business law - look it up if you don't believe me.
It actually goes by other things, I know from the marketing perspective it's usually explained as 'selling wants', as people buy wants over needs. The thing is that drugs don't really need much advertising, they're a 'want' product very strongly, it'd be much easier to move somethign to get someone high than it is to convince them to buy a dvd instead of a t-shirt.
 
Fausty said:
There's an interesting issue lurking behind the intersection of illicit markets and capitalistic structures, but this article misses it entirely.
damn right, actually many issues, but as you said they don't touch upon any of them :\
 
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