Modern Capitalism

Modern Capitalism has two important features which distinguish it from its prewar counterpart. Both features were present, particularly in American Capitalism, long before the War, but during the 1950's increased in importance sufficiently to make them the outstanding characteristics of today's system. These are, the giant corporations, and the fantastic amounts spent by them on advertising.

In one year, the Unilever group spends more on advertising than the British government has spent on Colonial Welfare and development in any year since 1950.

In every Western Industrial nation, giant Corporations control markets and fix prices. They have assumed such importance in national economies that they have a disproportionate influence upon government policy. (In New Zealand, the Farmers and Importers occupy much the same position.)

Such groups can, if they choose, hold the interests of the country to ransom in order to further private interests. One can cite such examples as the recent price increases by U.S. steel firms, the dropping of the Nelson cotton mill project at the instigation of the importers, or the demands of New Zealand's farmers for increased subsidies despite the parlous state of the country's economy.