John Ehrenreich’s 2016 book, Third Wave Capitalism: How Money, Power, and the Pursuit of Self-Interest Have Imperiled the American Dream, examines the evolution of capitalism in the U.S. and how it has impacted the socio-economic landscape. Ehrenreich divides the history of American capitalism into three waves, culminating in the contemporary era he calls “Third Wave Capitalism.” This era is characterized by significant shifts in power dynamics, the role of self-interest, and the deteriorating American Dream. Below is a structured summary of the book, highlighting its major points and providing actionable advice based on Ehrenreich’s analysis.

Characteristics:
– Dominated by small, independent businesses and entrepreneurs.
– Emphasis on individualism and personal economic freedom.

Example:
– The proliferation of small workshops and local businesses, fostering a culture of self-made wealth.

Actionable Advice:
– Foster local, community-based businesses to regain some of the entrepreneurial spirit and self-reliance of the First Wave era.

Characteristics:
– Marked by the rise of large corporations and centralized management.
– Increased government regulation and formation of labor unions to manage industrial capitalism’s excesses.

Example:
– The creation of the Sherman Antitrust Act to combat monopolies and the rise of labor movements.

Actionable Advice:
– Advocate for stronger regulatory frameworks to ensure corporations remain accountable to public interest and workers’ rights.

Characteristics:
– Deregulation, globalization, and technological change.
– Power shifts from manufacturers to financial markets and corporate executives.
– Increasing wealth and income inequality.

Example:
– The financialization of the economy, where financial markets, institutions, and elites gained disproportionate influence over the economic and political agenda.

Actionable Advice:
– Support policies that diminish financial sector dominance, such as stronger financial regulations and wealth taxes.

Point:
– Third Wave Capitalism has led to a concentration of power and wealth among a small elite, undermining democratic processes and economic equality.

Example:
– The dramatic rise in CEO compensation compared to average worker wages. In 1965, CEOs earned 20 times the average worker; today, they earn over 300 times more.

Actionable Advice:
– Advocate for policies such as higher minimum wages, progressive tax reforms, and corporate governance restructuring to reduce income disparity.

Point:
– The decline of labor unions and collective bargaining has weakened worker protection and contributed to wage stagnation.

Example:
– The percentage of unionized workers in the private sector has fallen from over 30% in the 1950s to less than 7% today.

Actionable Advice:
– Support unionization efforts and advocate for labor-friendly policies like the PRO Act (Protecting the Right to Organize Act).

Point:
– The shift towards gig and contract work has eroded job stability, benefits, and worker rights.

Example:
– Companies like Uber and Lyft rely heavily on independent contractors, offering them little in terms of job security, benefits, or a living wage.

Actionable Advice:
– Push for legislation that reclassifies gig workers as employees to ensure they receive fair wages and benefits.

Point:
– Corporate lobbying and campaign contributions have skewed policy-making to favor business interests over public welfare.

Example:
– The Supreme Court decision in Citizens United allowed unlimited corporate spending on elections, greatly increasing business influence over political candidates and priorities.

Actionable Advice:
– Support campaign finance reform initiatives aimed at reducing corporate money in politics, such as the Democracy for All Amendment.

Point:
– The promises of the American Dream—economic mobility, fair wages, and job security—have been undermined by economic policies favoring the wealthy.

Example:
– Rising education costs and student debt have made it harder for younger generations to achieve economic independence and social mobility.

Actionable Advice:
– Advocate for affordable higher education policies and student loan forgiveness programs to ensure that education remains a viable path to economic mobility.

Point:
– Third Wave Capitalism has fueled a consumer culture driven by relentless advertising, urging individuals to equate personal value with material possessions.

Example:
– The proliferation of targeted online advertising, which manipulates consumer behavior and fosters an insatiable demand for new products.

Actionable Advice:
– Promote awareness of advertising tactics and encourage mindful consumer behavior that prioritizes needs over wants.

Point:
– Technological advancements, while increasing productivity, have also led to significant job displacement and a polarized labor market.

Example:
– Automation and AI replacing traditional manufacturing jobs, resulting in a decline in middle-class, blue-collar employment.

Actionable Advice:
– Support retraining and reskilling programs to help displaced workers transition to new, technology-driven job markets.

Point:
– The globalization of trade has led to the outsourcing of jobs to countries with lower labor costs, undermining the domestic labor market.

Example:
– Major corporations moving manufacturing facilities to countries like China and India to reduce production costs at the expense of U.S. workers.

Actionable Advice:
– Advocate for trade policies that include labor and environmental standards to protect domestic jobs and promote fair global competition.

Point:
– Corporate practices under Third Wave Capitalism have often been detrimental to the environment, prioritizing profits over sustainability.

Example:
– The fossil fuel industry’s significant contributions to climate change due to lax environmental regulations and corporate lobbying.

Actionable Advice:
– Support environmental legislation and corporate responsibility initiatives that prioritize sustainable practices and reduce carbon footprints.

Point:
– Inequality in the education system has widened under Third Wave Capitalism, exacerbating socio-economic divides.

Example:
– Underfunded public schools in low-income areas produce poorer educational outcomes compared to well-funded schools in affluent communities.

Actionable Advice:
– Advocate for equitable funding for public schools to ensure all students have access to high-quality education, regardless of their socio-economic status.

Point:
– The privatization and commercialization of healthcare have led to exorbitant costs and unequal access to medical services.

Example:
– The high cost of prescription drugs and medical treatments in the U.S., making essential healthcare unaffordable for many.

Actionable Advice:
– Support healthcare reform initiatives that aim to make healthcare more affordable and accessible, such as Medicare for All.

John Ehrenreich’s Third Wave Capitalism provides a comprehensive analysis of the evolution of capitalism in the U.S. and its socio-economic impacts. The book underscores the importance of reverting to policies and practices that prioritize public welfare over corporate interests. By following actionable advice rooted in Ehrenreich’s analysis, individuals and policymakers can work towards a more equitable economic system that rejuvenates the American Dream for all.